The global freight forwarding market is a crucial part of the logistics chain that facilitates the transportation of goods internationally. Freight forwarders arrange groupage services, documentations, customs clearance and act as an intermediary between shippers and carriers.
Freight forwarders help reduce costs for businesses by consolidating shipments of different customers onto one container through groupage services. They offer value added services such as insurance, warehousing and tracking of shipments. With growing international trade and outsourcing of logistics functions, demand for third party logistics services like freight forwarding has increased tremendously.
The Freight Forwarding Market is estimated to be valued at US$ 184.94 billion in 2025 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Freight forwarders help businesses, especially small and medium enterprises, gain access to international markets without having to build costly internal logistics infrastructure. They assume responsibilities of arranging multi-modal transportation through sea, road and air. Documentation, customs clearance and cargo insurance are other important functions that simplify international trade for shippers.
Key Takeaways
Key players operating in the freight forwarding market are Agility Logistics, Bolloré Logistics, CEVA Logistics (a subsidiary of CMA CGM), C.H. Robinson Worldwide Inc., DB Schenker, DHL (part of Deutsche Post AG), DSV, Expeditors International of Washington, Inc., FedEx Corporation, GEODIS, Hellmann Worldwide Logistics, Kerry Logistics Network Limited and Kuehne + Nagel International AG.
These players are focusing on expanding their global network through acquisition of regional players to tap into opportunities arising from growth in international trade volumes.
The key opportunities in the Freight Forwarding Market Growth include rising seaborne trade between developing regions in Asia and Africa. China's Belt and Road initiative is spurring infrastructure investments in ports and rail networks which will boost cargo volumes handled by freight forwarders. Growing e-commerce is another major driver as online retailers increasingly rely on logistics providers for export-import of customer orders. Globally, freight forwarders are expanding their presence in emerging markets through new service centers and warehouses.
Regions like Latin America, Middle East and Africa offer strong growth potential owing to rapidly developing transportation infrastructure. Partnerships and acquisitions will continue to feature prominently as largest freight forwarding companies look to enhance their integrated supply chain solutions worldwide.
Market Drivers
One of the key drivers for the freight forwarding market is the increasing adoption of outsourcing by shippers. More companies are opting to use third party logistics services instead of developing in-house capabilities due to benefits like reduced fixed costs and better asset utilization. Freight forwarders provide timely delivery of goods while handling complexities of multi-modal transportation.
Market Restraints
Stringent customs regulations across countries can act as a restraint for the freight forwarding market. Documentation requirements and checks delayed clearance of shipments at borders, increasing transaction time and costs. However, forwarders are mitigating this challenge by offering online platforms that help automate paperwork and track status of import-export compliances.
Segment Analysis
Air freight forwarding is dominating sub segment in the freight forwarding market. Airlines help in moving freight quickly between destinations and many freight forwarders leverage air transport for time-critical shipments. They provide flexibility for last minute bookings. Also, air freight forwarding volume saw minimal impacts during COVID-19 pandemic compared to ocean freight as many goods still required to be transported rapidly via air.
Global Analysis Asia Pacific region is projected to witness fastest growth in freight forwarding market during the forecast period. This is attributed to increasing trade activities in countries such as China, India and Southeast Asian nations. China dominating the global exports market and freight movements to/from China are significant. Also, presence of emerging economies offering manufacturing opportunities and fast growing e-commerce sector boosting demand. North America region currently dominating the market supported by trade between US and other countries. However, market growth is estimated to be higher in Asia Pacific region in coming years.
Get this Report in Japanese Language- 貨物輸送市場
Get this Report in Korean Language- 화물 운송 시장
About Author-
Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
(LinkedIn- https://www.linkedin.com/in/priya-pandey-8417a8173/)
