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The Sea Freight Forwarding Market size is forecast to increase by USD 21.6 billion, at a CAGR of 5.29% between 2023 and 2028. The market hinges on various factors, such as the growing global cross-border e-commerce market, which drives the volume of Less than Container Load (LCL) shipments. There is also a rising demand for intermodal freight transportation, reflecting the need for efficient and integrated logistics solutions. Additionally, the increasing number of Free Trade Agreements (FTAs) among nations stimulates international trade activities, further boosting the logistics sector. These factors collectively shape the landscape of global trade and logistics, influencing strategic decisions for businesses and logistics providers alike. As globalization intensifies, the market adapts to accommodate evolving trade dynamics and the demands of an interconnected global economy.
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The manufacturing segment is estimated to witness significant growth during the forecast period. The manufacturing segment includes automotive, chemical, oil and gas, electronics, and wood and paper industries. Seafreight forwarding is a highly reliable mode of transportation of transportation equipment, machinery, and precision instruments for manufacturing industries.
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The manufacturing segment was the largest and was valued at USD 25.24 billion in 2018. Owing to the rising number of middle-class populations that indulge in the purchase of automobiles and consumer goods, there will be an increased demand for automotive, chemical, oil and gas, electronics, and wood and paper. Additionally, companies such as Nippon Express Holdings Inc. and CEVA Logistics have invested heavily in specialized equipment, such as FCL and LCL, to handle chemicals, minerals, and ores shipments efficiently and safely. Hence, owing to the significant growth of the manufacturing segment, the market is expected to grow during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends, and drivers that shape the market during the forecast period. The expansion of the Panama Canal has strengthened the regional market. The expanded canal can now accommodate vessels that are longer, wider, and heavier than before, and large-sized vessels can pass through the Panama Canal; it reduces the transit time and cost of transportation. This has enabled the sea freight forwarders to achieve economies of scale, as the higher the volume of loaded containers, the lower the operating cost. Thereby, driving the growth of the sea freight forwarding market in North America. The trade between NAFTA countries is likely to increase, particularly because of growth in industrialization, manufacturing and the rise in consumer spending capability. This is also expected to drive economic growth in NAFTA countries.
Further, the growing retail e-commerce market in the US is also contributing to the trade volume in the US. For instance, retail e-commerce sales in the US were valued at more than USD 1,825.3 billion in Q3 of 2023. The growing e-commerce market is likely to drive the demand for container shipping in the US and further boost the growth of the regional market during the forecast period.
The market is witnessing significant growth driven by the expanding global cross-border e-commerce market, emphasizing the importance of efficient freight forwarding services in facilitating international trade. An evident trend in this industry is the increasing deployment of mega-ships, enabling freight forwarders to optimize shipments and enhance logistical capabilities. However, the market faces challenges such as the upsurge in freight cost, driven by factors including rising air freight charges and the need to comply with environmental regulations to reduce carbon emissions. With a focus on leveraging carrier ships and containers for both full container load (FCL) and less than container load (LCL) shipments, seafreight forwarders navigate through waterways and marines to transport cargo efficiently across long distances. Despite challenges related to heavy loads and hazardous cargo, the seafreight forwarding market remains integral to the shipping industry, supporting global commerce from the point of origin to destination while adapting to evolving trends in the e-commerce industry and advancements in transportation infrastructure.
The growing global cross-border e-commerce market driving LCL volume is notably driving market development. The growing Internet penetration and rising purchasing power parity (PPP) across all regions are the key contributing factors to the growth of the global cross-border e-commerce industry. The US and China are the key contributing countries to the global cross-border e-commerce industry. This market growth analysis in cross-border e-commerce trade is expected to positively influence the volume of sea freight worldwide operations. The LCL seafreight shipments are propelled by the rise in the number of small package shipments. Further, sea transportation is emerging as a preferred mode for e-commerce due to the developments in infrastructure and services designed specifically for the e-commerce industry.
For instance, in June 2022, Maersk announced the acquisition of Senator International for cross-border logistics to Maersks North American landside logistics capabilities for different distribution models, such as business-to-business (B2B) and business-to-consumer (B2C). Therefore, the growing demand for global cross-border e-commerce services is driving the growth of the market during the forecast period.
Increasing deployment of mega-ships is an emerging trend shaping the market growth. Mega-ships are container ships which have capacities of around 20,000 TEUs or more. The global shipping industry is witnessing a trend of new deliveries and deployment of mega-ships for cargo movement. The factors driving the demand for mega-ships by shipping companies include the expansion of the Panama Canal and growing strategic alliances among shipping companies. This development allowed shipping companies to reduce shipping cost and operating costs by utilizing big vessels.
For instance, in June 2023, Maersk deployed six mega ships of 9,000 TEU to expand methanol orders. This not only increased the global trade volume but also strengthened the shipping industry. Furthermore, on January 8, 2024, AAL Limassol floated its first six new mega size 32,000 dwt, which has dual fuel compatibility and is methanol ready. Thus, the deployment of mega-ships is anticipated to boost the growth of the market during the forecast period.
Upsurge in freight cost is a significant challenge hindering the market growth. The major cost of transportation stems from fuel consumption, as an increase in crude oil prices is hindering the profitability of vendors. The increasing container freight rates are another factor contributing to the high cost of shipping in the market. Due to the disruption in the Suez Canal since March 2021, container freight rates in the global shipping industry are witnessing volatility, posing a challenge to seafreight forwarders and shipping companies to recover operating costs on certain sea-trade routes.
However, bunker cost is another considerable cost element in the shipping industry, which amounts to around 25%-30% of the total freight cost. The rise in crude oil prices also increases the bunker cost. Thus, the rise in freight rates leads to financial distress among seafreight forwarders, which is expected to pose a challenge to the market during the forecast period.
The market forecasting research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting 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.
Agility Public Warehousing Co. K.S.C.P - The company offers seafreight forwarding services such as ecommerce logistics and last mile delivery, fuel logistics, airport services, customs digitization, remote site services, and commercial real estate and facilities management.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is a critical component of global trade activities, facilitating the movement of goods via carrier ships and cargo ship. Whether it's full container load (FCL) or less than container load (LCL) shipments, seaborne trade plays a pivotal role in connecting point of origin to destinations across long distances. As technology advancements drive industry investors to enhance sea freight logistics planning, online shopping, and e-retail revenues contribute to the growth of waterways and marines operations.
However, despite challenges such as security concerns and carbon emissions, ocean freight forwarders ensure safe and fast delivery of hazardous cargo and heavy loads. Industries ranging from the automotive and electronics sectors to agriculture and healthcare rely on seafreight forwarding for low-cost transportation methods and reliable shipping (modes of transportation). With artificial intelligence (AI), global positioning system (GPS), and the Internet of Things (IoT) revolutionizing seaways management, the market adapts to meet the evolving needs of customers and global trade dynamics.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.29% |
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Market Growth 2024-2028 |
USD 21.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.82 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 38% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, AP Moller Maersk AS, Bollore SE, C H Robinson Worldwide Inc., CEVA Logistics S A, DACHSER SE, DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., GEODIS, Glaube Logistics, Hellmann Worldwide Logistics SE and Co KG, Hitachi Ltd., Inchcape Shipping Services, Kuehne Nagel Management AG, LX Pantos India Pvt Ltd., Mullen Group, Nippon Express Holdings Inc., Nippon Yusen Kabushiki Kaisha, SF Express Co. Ltd., Total Group, United Parcel Service Inc., and Sinotrans Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market trends and analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
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Customization purview |
If our market 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 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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