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The freight forwarding market size is forecast to increase by USD 47.03 billion at a CAGR of 3.8% between 2023 and 2028. The market witnesses significant growth due to the increasing transfer of goods both nationally and internationally for successful trade. The use of advanced technologies such as AI and Machine learning (ML) in logistics operations enhances efficiency and ensures goods are delivered in good condition. However, challenges persist in the form of complex customs regulations, negotiating tariffs, and shipping requirements. These factors contribute to the high costs associated with Forwarding freight. To mitigate these challenges, freight forwarding companies must stay updated on the latest regulation and requirements, while also leveraging technology to streamline processes and reduce costs. By doing so, they can provide reliable and cost-effective solutions to their clients, ultimately driving market growth.
Freight forwarding is an essential component of global trade, involving the coordination and organization of shipment for multiple modes of transport, including air, marine, rail, and highway. This process ensures the timely and successful transfer of goods from one location to another, enabling businesses to expand their reach and increase their market share. Effective freight forwarding requires proficient coordination between carriers, borders, and customs regulations. In today's complex global trade environment, it is crucial to stay informed about the latest shipping requirements, tariffs, and customs regulations to ensure a seamless transfer of goods. One of the primary challenges in freight forwarding is the coordination of multiple modes of transport. Understanding the customs regulations of each country is essential to ensure that goods are cleared efficiently and in good condition. Advanced technologies, such as real-time tracking systems and automated customs clearance, can help reduce delays and improve efficiency.
Additionally, digital documentation and electronic data interchange can help streamline the freight forwarding process and reduce the need for physical paperwork. Best practices for freight forwarding include: Establishing strong relationships with carriers and logistics providers to ensure timely and efficient shipment. Staying informed about the latest shipping requirements, tariffs, and customs regulations. Utilizing information technology to streamline the freight forwarding process. Negotiating shipping requirements and deadlines to optimize the use of multiple modes of transport. Ensuring that goods are in good condition upon arrival by working closely with carriers and logistics providers to implement best practices for handling and storage. In conclusion, freight forwarding is a critical component of global trade, involving the coordination and organization of shipment for multiple modes of transport. By following best practices and staying informed about the latest regulations and technologies, businesses can optimize their freight forwarding processes and ensure timely and successful transfer of goods nationally and internationally.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The land freight segment is estimated to witness significant growth during the forecast period. The land freight segment, which includes road and rail transportation, is a significant part of the freight forwarding market. This segment plays a vital role in enabling the transportation of goods to their final destination, both domestically and internationally.
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The land freight segment was the largest segment and was valued at USD 10.47 billion in 2018. The road freight segment, specifically, is a dynamic and essential component, with goods being transported via trucks, trailers, and other road vehicles. Its flexibility and last-mile connectivity make it a primary choice for transporting a wide range of commodities, such as manufactured goods, consumer products, and raw materials. The ability of road freight forwarding to reach remote locations and access points unreachable by other modes of transport ensures timely and efficient deliveries, providing a competitive edge in the freight forwarding industry. Information technology plays a crucial role in streamlining logistics processes, including shipping schedules and documentation, for both freight forwarders, Sea freight, and shippers. Freight forwarders act as intermediaries between logistics companies and shippers, facilitating the smooth movement of goods from origin to destination.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Asia Pacific (APAC) region is experiencing a thriving and expanding market for freight forwarding services. Fueled by factors such as the growth in internet usage, growing international trade activities, and favorable government policies, this industry's growth is significant.
Furthermore, the proliferation of internet usage is driving the growth of e-commerce, which in turn, necessitates efficient freight forwarding solutions to manage the escalating volume of online transactions and deliveries. However, challenges such as financial losses due to stolen or damaged goods during transit remain a concern. Consolidating freight and implementing cost-effective shipping strategies are essential to mitigate these risks and maintain customer satisfaction.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing international trade is notably driving market growth. The global market is witnessing notable expansion due to the increasing coordination required for the efficient movement of goods through various modes of transport, including air, marine, rail, and highway. This growth is primarily driven by the rise in international trade, with countries like India experiencing a significant increase in merchandise exports. From USD 314 billion in 2013/14 to USD 451 billion in 2022/23, India's exports have grown at an average annual rate of 5%.
Furthermore, key commodities, such as petroleum products, diamonds, packaged medicaments, jewelry, and rice, are in high demand and are exported to major destinations, including the US, UAE, Netherlands, China, and Bangladesh. The expanding role of India in global trade necessitates advanced freight forwarding services to manage the increased demand for seamless and efficient shipment handling. Thus, such factors are driving the growth of the market during the forecast period.
Growing usage of AI and ML in freight forwarding is the key trend in the market. The market is undergoing a significant evolution due to the integration of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML). These technologies are streamlining operations, increasing efficiency, and providing a competitive edge to industry participants. The adoption of AI and ML is shaping the industry by offering real-time insights, precise demand forecasting, optimized inventory management, reduced shipping costs, and enhanced customer service. AI and ML play a crucial role in optimizing logistics operations by utilizing real-time data, including customs regulations, shipping requirements, and traffic conditions, to determine the most efficient routes.
Furthermore, this capability not only reduces transportation expenses but also ensures timely delivery, leading to successful trade transactions. Furthermore, these technologies enable industry players to negotiate tariffs effectively and navigate complex customs regulations, both nationally and internationally. In conclusion, the freight forwarding market is being revolutionized by AI and ML, which are transforming core operations, enhancing efficiency, and providing a competitive edge. These advanced technologies offer numerous benefits, including real-time insights, optimized inventory levels, reduced transportation costs, and improved customer service. By utilizing real-time data, AI and ML are optimizing route planning, reducing transportation expenses, and ensuring timely and cost-effective logistics solutions. Thus, such trends will shape the growth of the market during the forecast period.
High fuel and transportation costs associated with freight forwarding is the major challenge that affects the growth of the market. The market faces a substantial challenge with the continuous rise in fuel and transportation costs, significantly impacting the financial health of freight forwarders. These increasing expenses are putting pressure on budgets and shrinking profit margins, compelling a review of financial strategies and operational best practices.
Furthermore, fuel costs constitute a substantial portion of freight forwarders' overall budgets. In the US, the average price of regular gasoline in August 2024 was USD 3. Timely and proficient freight forwarding services are essential to maintain customer satisfaction and adhere to regulations, especially when crossing borders. Ensuring compliance with regulations at land and sea borders is crucial to prevent delays and additional costs. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
C H Robinson Worldwide Inc. - The company offers freight forwarding services such as ocean freight services, air freight services, and customs brokerage.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the dynamic world of global trade, freight forwarding plays a pivotal role in ensuring the timely and proficient transfer of goods from one location to another, be it nationally or internationally. Freight forwarders serve as intermediaries between shippers and carriers, coordinating shipment through various modes of transport such as air, marine, rail, and highway. The freight forwarding market encompasses the logistics of moving goods from their origin to their final destination. This involves negotiating tariffs, customs regulations, and shipping requirements. Freight forwarders facilitate the documentation process, transportation plan, and shipment tracking.
Furthermore, they also handle customs compliance and clearance, commercial invoices, and document transfer fees. Freight forwarders utilize information technology and their extensive knowledge to create efficient and cost-friendly shipping solutions. They consolidate freight and arrange container load arrangements. They also provide cargo insurance to mitigate financial loss due to stolen or damaged goods. Cargo logistics is a critical aspect of freight forwarding, involving cargo space scheduling, cargo insurance, and Marine insurance. Freight forwarders ensure that goods are transported in good condition and arrive at their destination on time. They also handle warehousing and storage units, acting as locale affiliates for shippers. Freight forwarders play a crucial role in the successful trade of goods, navigating the complexities of borders and seas to ensure a smooth transition of goods from one country to another. They are essential partners in the global supply chain, enabling businesses to thrive in today's interconnected world.
Market Scope |
|
Report Coverage |
Details |
Page number |
217 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.8% |
Market growth 2024-2028 |
USD 47.03 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.7 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 47% |
Key countries |
US, China, Japan, Germany, Canada, India, South Korea, UK, Brazil, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AP Moller Maersk AS, APT Logistics, AWL India Pvt. Ltd., C H Robinson Worldwide Inc., CEVA Logistics, DACHSER SE, DB Schenker, DHL Express Ltd., Dimerco Express Corp, DSV AS, FedEx Corp., GEODIS, Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, Manitoulin Group of Companies, Nippon Express Holdings Inc., SEKO Logistics, Sinotrans Ltd, Uber Technologies Inc., and United Parcel Service Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Mode of Transportation
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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