About Freight Forwarding
Freight transportation can be defined as all activities to move commodities. These activities include transportation by trucks, aircraft, ships, barges, railways, and related logistics activities such as handling and storage. According to the expertise, “Ocean Freight Forwarding to witness high growth through the forecast period. the Ocean Freight Forwarding market size will reach USD 152145 million by 2025, from USD 99800 million in 2019.” In 2019, the total mail volume delivered by the United States postal service alone was over 142.5 Billion units. The export value of U.S.-NAFTA air freight flows in 2019 amounted to almost 21.8 US Dollars. According to American trucking associations, “Truck moved almost 11 Billion tons for freight in 2017.” The booming e-commerce market and the growth in international trade volumes is a major driver for the freight forwarding market. New trade corridors between Asia and Africa, Asia, and South America and within Asia will re-chart global supply chains. Trade volumes will shift towards emerging markets and least developed countries will take their first steps into the global marketplace. Emerging markets provide outstanding opportunities for logistics service providers, both in terms of overall growth rates and in response to rapidly changing market trends. The impact of Covid-19 has amplified pre-existing troubles in freight forwarding. According to reserch, global freight forwarding market could contract by 7.5% in 2020 as a result of the crisis.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
High Growth Market | Asia Pacific |
Unit | Value (USD Million) |
CAGR | 6.6% |
Key players in the market are focusing on expanding their services beyond boundaries. Recently, in November 2018, CEVA Logistics planned to start China-Europe trucking service to compete with airfreight. The company claims that truck services are cheaper than air freight and faster than rail freight.The Manufacturers having a strong hold in the market are DHL Supply Chain & Global Forwarding, Kuehne + Nagel, DB Schenker. Analyst at AMA Research estimates that Switzerland, United States and Germany Manufacturers will contribute the maximum growth to Global Freight Forwarding market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Kuehne + Nagel [Switzerland], DHL Group [Germany], DB Schenker Logistics [Germany], C.H.Robinson [United States], CEVA Logistics [United Kingdom], DACHSER Germany), GEODIS [France], DSV [Denmark], Sinotrans Limited (China), Panalpina [Switzerland], Expeditors [United States], Nippon Express [Japan], Pantos Logistics [South Korea] and Agility Logistics [Switzerland] are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research coverage are Hellmann [Germany], Damco [Netherlands], KWE [Japan], Hitachi Transport [Japan], Sankyu [Japan], Kerry Logistics [Hong Kong], Logwin [Luxembourg], Yusen Logistics [Netherlands], United Parcel Service [United States], Dimerco [Taiwan], Deutsche Post [Germany], CJ Logistics Corporation [South Korea], FedEx Corp [United States], XPO Logistics Inc. [United States], A.P. Moller - Maersk [Denmark] and DTDC Express Limited [India].
Segmentation Overview
AMA Research has segmented the market of Global Freight Forwarding market by , Application (Industrial and Manufacturing, Retail, Healthcare, Media & Entertainment, Military, Oil & Gas, Food & Beverages and Others (Agro Commodities, Government and Public Utilities, & Fertilizer, Jewelry, etc.)) and Region.
On the basis of geography, the market of Freight Forwarding has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2023. Europe, on the other hand, stood as the second largest market due to the presence of key companies in the region and high technological advancement. If we see Market by Services, the sub-segment i.e. Freight Transportation will boost the Freight Forwarding market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Type of Freight Forwarders, the sub-segment i.e. Consolidators will boost the Freight Forwarding market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Mode of Transportation, the sub-segment i.e. Road will boost the Freight Forwarding market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Customer Type, the sub-segment i.e. B2C will boost the Freight Forwarding market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Rising Demand For Integrated Service and Shift Towards Ocean Freight Industry from Air Freight Industry
Market Growth Drivers:
High Demand for Cost Effective Shipping and Ability to Provide Quick Logistics Solution
Challenges:
Volatile Nature of Trade Activities and Regional Disputes among Neighboring Countries
Restraints:
Shifting Manufacturing Process to Domestic Base to Reduce Total Cost of Ownership (TCO), Stringent Regulation regarding Import and Export and Hostile Relationships among Countries such as Trade War
Opportunities:
Rising Cross Border Trade Activities and Economic Growth in Emerging Countries
Market Leaders and their expansionary development strategies
In April 2019, DSV announced that they had acquired PANALPINA WORLD TRANSPORT (HOLDING) LTD. in a USD 4.6 billion acquisition. The acquired organisation will be renamed as “DSV Panalpina”. This acquisition will create a global leader in transportation and logistics services provision.
In November 2018 Kuehne + Nagel intended to acquire Quick International Courier, a market leading provider of time-critical transportation and logistics solutions globally. "The acquisition of Quick is another accelerator to drive network growth and to enhance our global customer solutions portfolio”, says Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG.
The risks and liabilities of a freight forwarder taking responsibility for shipment include total loss of cargo, damage of cargo, rerouting of cargo, non collection of documents, incorrect release of cargo and many others. Under all above conditions, freight forwarder is liable but only if proven of negligent behavior on their part. and Moreover, freight forwarding is affected by countries trade laws as well. A favorable and transparent trade laws provide stability and invite healthy competition.
Key Target Audience
Freight Forwarding Service providers, Potential Investors, Government Agencies and Research Institute
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.