With the rise of e-commerce and technological advancements, the traditional boundaries of the freight forwarding market have expanded.It reflects the industry’s exploration of untapped markets and the identification of opportunities that arise from the integration of economies. As businesses aim to access new markets, freight forwarders serve as the bridge, offering expertise in navigating customs, regulations, and logistics intricacies.
The freight forwarding market plays a pivotal role in global commerce, facilitating the movement of goods across borders and oceans. It serves as a critical link between manufacturers, suppliers, and consumers, enabling efficient and timely delivery of products. As international trade continues to expand, the freight forwarding industry has experienced significant growth and transformation.
Freight forwarders act as intermediaries, coordinating various aspects of shipping, including transportation, customs clearance, documentation, and logistics. They leverage their expertise to optimize supply chains, minimize transit times, and reduce costs for businesses of all sizes. With the rise of e-commerce and globalization, the demand for streamlined and reliable freight services has surged, prompting innovation in technology and processes.
The Global Freight Forwarding Market was valued at US$ 204.6 Bn in 2019 and is expected to reach US$ 277.5 Bn by 2028 at a CAGR of 5.0% between 2021 and 2028, says Coherent Market Insights. The expanding e-commerce business has aided in the expansion of trade operations, leading in market growth. According to the United Nations Conference on Trade and Development (UNCTAD), 1.45 billion people worldwide bought online in 2018 (up 9% from 2017), and e-commerce sales totaled US$25.6 trillion (up 8% from 2017).
Digitalization has revolutionized the industry, allowing for real-time tracking, automated documentation, and enhanced communication between stakeholders. Moreover, sustainability concerns have prompted the adoption of eco-friendly practices, influencing the choice of transportation modes and packaging materials.
However, the freight forwarding market is not without challenges. Complex international regulations, geopolitical tensions, capacity constraints, and the ongoing impact of the COVID-19 pandemic have all shaped the industry’s landscape. Navigating these hurdles requires adaptability, strong partnerships, and a deep understanding of global trade dynamics. As the world becomes increasingly interconnected, the role of freight forwarding remains indispensable in maintaining the flow of goods and driving economic growth.
In terms of value, Europe dominated the Global Freight Forwarding Market in 2019, accounting for 31.8% of the total, followed by Asia Pacific and North America, respectively. The presence of significant firms like as Kuehne & Nagel, DHL, DB Schenker, and Panalpina Inc. has largely contributed to the region’s growth. In the worldwide freight forwarding sector, the Asia Pacific area is experiencing substantial expansion. The presence of fast-growing economies such as India and China is primarily responsible for the region’s growth. The region’s fast-growing economies provide growth prospects, so top corporations are focusing on merger and acquisition to increase their companies’ footprint in these economies.
During the projected period, the increase in international commerce volume handled by air freight and ocean freight is likely to boost market growth. The volume of cargo transported is quite important in the freight forwarding industry. As a result, air and ocean freight forwarding companies must raise cargo volume to meet customer demand. For example, in December 2019, Kuehne + Nagel International AG, a German transport and logistics firm, raised its air cargo volume by 11.02% from 1.5 million air freight metric ton in 2018 to 1.7 million air freight metric ton in 2019.
Major companies operating in the global freight forwarding are: Agility, Bolloré Logistics, CEVA Logistics, DB Schenker, DHL Global Forwarding, Dimerco, DSV Panalpina A/S, Expeditors International, Hellmann Worldwide Logistics, Kuehne + Nagel International AG, MGF (Manitoulin Global Forwarding), Nippon Express Co., Ltd., and UPS Supply Chain Solutions
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