Freight Forwarding Market Size, Share, Growth, Trends, and Global Industry Analysis: By Service Type (Transportation & Warehousing, Packaging & Documentation, Cargo Insurance, Value-added Services, Others), By Mode of Transport (Ocean, Air, Road, Rail) and Region

The freight forwarding market size was valued at US$ 189,289.1 million in 2023 and is projected to reach a value of US$ 262,817.7 million by 2030, at a CAGR of 4.8% from 2024-2030. Moreover, the U.S. Freight Forwarding market is projected to grow significantly, reaching an estimated value of US$ 63,792.5 million by 2032.

Freight forwarding is an agreement among companies to transport goods from one place to another. Under this service, freight forwarders arrange transportation, storage, documentation, and other requirements that allow the movement of goods efficiently and within the bounds of the law.

The freight forwarding market is currently experiencing a steady growth trend. Some of the drivers responsible for the market growth include increasing international trade, growth in the e-commerce industry, and growing free trade agreements between nations. Real-time tracking systems and AI-driven analytics have increased the transparency and efficiency in supply chains, thereby increasing the market.

Key players

The Freight Forwarding market share is inclusive of several companies such as Agility, Baltic Transline, Bollore Logistics, CEVA Logistics, DB Schenker, DHL, Dimerco, DSV Panalpina A/S, EFL, GEODIS, Hellmann Worldwide Logistics, Kuehne + Nagel International AG, Nippon Express Co., Ltd.

Agility is the world leader in supply chain services, infrastructure, and innovation. Its services include aviation services, logistics parks, customs digitization, and digital logistics.

Baltic Transline is one of the largest logistics operators in Europe, which specializes in international cargo transportation and freight forwarding. High-quality service, flexibility, and continuous improvement of the company's performance have earned a loyal client base.

Key Takeaways

• The fastest-growing region is Asia-Pacific
• Based on service type, the transportation & warehousing segment holds a 38.2% market share
• Based on mode of transport, the road segment holds a 53.4% market share

Facts & Figures

• S. ports freight forwarding volumes reached 14 million TEUs (twenty-foot equivalent units) in 2022, increased as supply chain bottlenecks eased post-COVID-19.
• March 2023: Sea freight rates in Europe fell by about 70% from their peak in 2021, as demand cooled and logistics networks normalized.
• Worldwide air freight demand fell 8.3% over a year ago, partly because Asian exports were lower than before and North America and Europe had slower economic growth.
• China remained the world's leading exporter of goods, capturing 15% of world trade, which had an important influence on demand within the freight forwarding industry.
• Cross-border e-commerce freight forwarding accounted for approximately 25% of all forwarding activity in North America, which was one indicator of how e-commerce is driving growth in demand for logistics.
• Container dwell times at the Port of Los Angeles had fallen from an average of 11 days in 2021 to around 4 days, making for faster turnaround for freight forwarders.
• About 30% of small and medium freight forwarders started using digital booking platforms. That is the first sign of a shift in the direction of a digital transformation for the sector.

Key Developments

• 2024: Skybridge Freight Solutions acquired Asyad increasing their footprint across markets like China, India, and the US.
• 2024: Omniboom acquired by Magaya strengthened its network of connected supply chains.
• 2024: Quadrant Pacific ship agency business was acquired by GAC with a strengthening footprint of GAC in Asia-Pacific markets.
• 2024: Air France-KLM expands strategic partnership with Worldwide Flight Services (WFS) in North America.
• 2024: WiseTech Global launched CargoWise expanding global customs capabilities into Portugal.
• 2024: Kings Transport buys Ningbo London from Palletline Logistics as it aims to expand its market share

Freight Forwarding Market Segmentation

By Service: The Transportation & Warehousing segment holds the maximum share in the freight forwarding market. This is because it encompasses the core activities of moving goods from one location to another and storing them until they are needed. Efficient transportation and warehousing are critical for ensuring timely delivery and maintaining the integrity of goods, which is essential for businesses engaged in international trade. Demand for reliable and cost-effective transportation and warehousing continues to fuel growth in the segment.

By Mode of Transport: The freight forwarding market holds the maximum market share of the road. Two of the primary factors contributing to road transportation's widespread use are its adaptability and accessibility. Many locations, even remote areas where other modes of transportation might not be as practical, are reachable by road. It is the preferred vehicle for delivering items to a variety of locations and serving a large range of clients due to its user-friendliness. Moreover, cost-effectiveness has been a key driver of road transportation's expansion. For short- to medium-distance exports, road transport is frequently more economical than rail or air freight. This cost-related advantage has made road transport a desirable alternative for local and regional deliveries, particularly where timely and cost-effective delivery is essential.