The Freight Forwarding Market is estimated to be valued at Us$ 248.69 Bn in 2023 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030 , as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Freight forwarding involves the organization and execution of transportation on behalf of shippers through complete door-to-door services including pick-up, consolidation, handling, customs clearance, warehousing, shipment tracking and delivery. Freight forwarders act as an intermediary between shippers and carriers to facilitate the transportation of goods internationally. They consolidate cargo from multiple clients into larger shipments to obtain favorable rates from carriers.

Market Dynamics:

The freight forwarding market is expected to witness significant growth owing to increasing global trade and volume of international shipments. According to the World Trade Organization, the value of global merchandise exports increased by 9.8% in 2021. Growing e-commerce industry is also contributing to the demand for freight forwarding services as e-tailers rely on logistics providers for delivery of goods to customers across borders. borders. In addition, outsourcing of logistics functions by manufacturers to third-party logistics providers in order to focus on their core business will drive market growth over the forecast period. However, global supply chain disruptions due to Covid-19 pandemic and geopolitical conflicts have increased uncertainty and volatility which may hinder market expansion.

SWOT Analysis

Strength: Global presence and extensive worldwide networks allow freight forwarders to offer customized, end-to-end supply chain solutions to their customers. Many freight forwarders have robust IT systems that provide transparency and visibility across the supply chain. A well-established customer base provides a steady stream of recurring revenue.

Weakness: Fluctuations in freight rates leave little room for error in cost projections. Logistics is a low-margin business where competition puts downward pressure on pricing.

Opportunity: Growth of the e-commerce sector is driving demand for fast and reliable logistics services. Adoption of technologies like blockchain, AI and IoT can help freight forwarders improve efficiency and offer value-added services.

Threats: Geopolitical tensions and trade wars increase risks and costs of global trade. Economic downturns reduce demand for freight forwarding and put financial pressure on operators.

Key Takeaways:

The Global Freight Forwarding Market Size is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing cross-border trade flows and evolving customer demand for customized supply chain solutions. Freight forwarding addresses the transportation and warehousing needs of manufacturers and distributors engaged in international trade.

The Asia Pacific region is expected to dominate the freight forwarding market, accounting for over 35% of the global market share in 2023. Rapidly growing economies like China and India are major trade hubs, driving immense trade volumes in Asia. Moreover, Asia operates several of the busiest ports and logistics hubs globally, strengthening its position as a freight forwarding powerhouse.

Key players operating in the freight forwarding market are Agility, Bollor 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. Market leaders are focusing on expanding their multimodal networks and investing in digital capabilities to enhance customer experience.

Read More : https://marketinsightsminds.blogspot.com/2023/12/freight-forwarding-is-fastest-growing.html