by Freight forwarding refers to the professional management and coordination of shipment of goods to destinations across the world. Freight forwarders help in organizing transportation of shipments via different modes such as air, ocean, and land. They arrange customs clearance, booking of cargo space, documentation, and handling of logistics. The freight forwarding market has witnessed significant growth over the past few years due to increasing globalization and expansion of international trade activities. The market is further driven by growing e-commerce sector and need for reducing supply chain costs.
The Global Freight Forwarding Market is estimated to be valued at US$ 286.5 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Freight Forwarding market are Abbott Laboratories, Amgen Inc., GlaxoSmithKline, Johnson and Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Inc., Roche, and Sanofi €“ Aventis. These players are focusing on adopting advanced technologies and implementing innovative solutions to optimize supply chain operations.
The Freight Forwarding Market Growth provides significant opportunities such as multi-modal transportation, time-sensitive cargo delivery, and specialized cargo handling. Freight forwarders are expanding service offerings to cater to growing demand from industries.
Globally, the freight forwarding market is witnessing expansion in emerging economies of Asia Pacific and Latin America due to increasing export-import activities. China maintains a dominant position as it is a major manufacturing hub and trading nation. Developed markets like North America and Europe are also providing substantial growth avenues.
Market Drivers
The key driver fueling growth of the freight forwarding market is the rising international trade volumes between countries. As globalization increases collaboration between nations, requirements for handling cross-border shipments of goods and materials are also witnessing a parallel surge. Transportation and logistics form the backbone of seamless import-export activities. This has significantly boosted demand for freight forwarding services over the past few decades.
PEST Analysis
Political: The freight forwarding industry is governed by various trade policies set by regulatory bodies. Changes in duties, tariffs and taxes can impact operations and costs.
Economic: Freight volumes and demand are correlated to global trade and economic growth. A rise in manufacturing and international trade benefits the freight forwarding industry.
Social: The industry caters to Just-in-Time production and online retail which require quick deliveries. Consumer demand for cheaper and faster deliveries drives innovation.
Technological: Technology is enabling end-to-end supply chain visibility and automation of documentation. Adoption of digitization, IoT, blockchain and analytics improves efficiency.
Geographic concentration of market value
The freight forwarding market in North America holds the largest share in terms of value, mainly driven by strong trade links within NAFTA countries and from Asia. China, as the largest exporter, and the US, as the largest importer globally, contribute significantly to freight volumes and revenues.
Fastest growing regional market
The Asia Pacific region excluding Japan is expected to grow the fastest during the forecast period due to rising consumption, exports from China and India, and infrastructure investments across Southeast Asian nations. International transportation connectivity under China’s Belt and Road Initiative will propel trade integration and freight movement.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
