New York, United States, Dec. 07, 2023 (GLOBE NEWSWIRE) -- Freight forwarding services include consolidation, storage, handling, packaging, distribution, advisory services, and auxiliary services. In addition, freight forwarding service providers coordinate with customs to ensure proper documentation and identify the best, most affordable, and quickest routes. Reductions in air and sea freight rates as a result of falling oil prices, the growth of the e-commerce industry, and the increasing prevalence of cloud-based operations that simplify supply chain management are some of the key growth drivers for the freight forwarding market. During the forecast period, the volume of international trade transported by air and ocean freight is anticipated to increase.
The freight forwarding industry relies heavily on the volume of cargo transported. Therefore, air and ocean freight forwarding companies must increase cargo volume to meet consumer demand. The German transport and logistics company Kuehne + Nagel International AG increased its air cargo volume by 11.02 percent in December 2019, from 1.5 million metric tons in 2018 to 1.7 million metric tons in 2019.
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The surge in International Trade Drives the Market
According to Straits Research, “The global freight forwarding market size was valued at USD 210.07 billion in 2022. It is projected to reach USD 314.88 billion by 2031, growing at a CAGR of 4.6% during the forecast period (2023-2031).” The development of the freight forwarding market is significantly influenced by the expansion of international trade volumes. The exchange of services and goods between various countries constitutes international trade. International trade will expose different consumers from other nations to the products and services that are unavailable or more expensive at home. Freight forwarders organize the intermodal transport of goods on behalf of shippers, and a rise in the volume of trade will stimulate freight forwarding. According to the World Trade Organization, the global volume of merchandise trade will increase by 8.0% in 2021. Consequently, it is anticipated that the expansion of international trade will propel the future growth of the freight forwarding market.
Increasing Adoption of Artificial Intelligence gives Opportunity for Exponential Growth
In the freight forwarding sector, the inclusion of artificial intelligence (A.I.) has emerged as a popular trend. Through automated processes and real-time data, artificial intelligence plays a crucial role in lowering costs, saving time, increasing productivity, and enhancing precision. In July 2019, the Swiss logistics company Kuehne+Nagel launched the AI-enabled freight forwarding platform eTrucknow.com for land-based shipments within the Asia-Pacific region. eTrucknow allows shippers to streamline the quotation and comparison process. After the customer submits shipment details, an AI-enabled engine automates and optimizes the comparison of quotes by validating multiple data points and displaying the most affordable quote to the customer. In addition, through its marketplace platform, eTrucknow provides certified carriers with access to a network of shipping companies in need of road freight services, enabling them to convert empty space or empty trips into potential revenue.
Regional Analysis
North America is the most significant shareholder in the global freight forwarding market and is expected to grow at a healthy CAGR during the forecast period. The U.S. transportation and logistics industry are highly developed, with numerous domestic and international companies present. Due to the use of air, rail, truck, and water transportation services, the region's wholesale and retail industry is the largest consumer of freight forwarding services. The expanding e-commerce sector in the region will propel the exponential growth of the freight forwarding market over the forecast period.
Due to the massive interconnected, globalized economy consisting of tens of thousands of bilateral trade relationships, it is anticipated that Europe's economy will expand at a rapid rate. The European Freight Forwarders Association (EFFA) provides freight forwarders with a forum and a global network of quality agents so that each member can compete more effectively in a global economy that is expanding. Unlike multinational freight companies, EFFA agents are able to provide customized and diverse services to a diverse market. The growth of European commerce has led to an increase in demand for freight forwarding services. The European network for logistics satisfies this demand through the network of its member companies by offering optimal pricing and delivery terms to all European nations. Freight forwarders offer retailers who require storage and distribution services access to their network of warehouses and other storage facilities, where goods can be stored until they are distributed to their final destinations. The warehouses of the industry partners of the European Network for Logistics Services are sufficiently dispersed to store vast quantities of diverse goods. The warehouses are located in all key destinations in nearly every European nation, enabling them to offer space and stock maintenance services to all European merchants in order to guarantee regular deliveries to final destinations.
Competitive Analysis:
The global freight forwarding market's major key players are Ceva Logistics, Damco International, DB Schenker Logistics, DHL Supply Chain & Global Forwarding, DSV Air & Sea, Expeditors International of Washington, Hellmann Worldwide Logistics, Kerry Logistics, Kuehne+Nagel Inc., L.F. Logistics, Logwin Logistics, Nippon Express, Orient Overseas Container Line Limited, Panalpina Inc., Pantos Logistics, SDV/Bollore Group, Sinotrans Limited, UPS Supply Chain Solutions, UTI Worldwide, and Yusen Logistics.
Market News:
- In September 2022, Yusen Logistics is expanding in southern Germany with a new logistics center.
- In November 2022, Kerry Logistics launched a new e-commerce express solution with S.F Express Hong Kong for economical and rapid delivery service.
Global Freight Forwarding Market: Segmentation
By Service
- Transportation and Warehousing
- Packaging and Documentation
- Value-added Services
By Mode of Transport
- Air Freight Forwarding
- Ocean Freight Forwarding
- Road Freight Forwarding
- Rail Freight Forwarding
By Customer Type
- B2B
- B2C
By Application
- Industrial and Manufacturing
- Retail
- Healthcare
- Oil and Gas
- Food & Beverages
- Others
By Regions
- North America
- Europe
- APAC
- Middle East and Africa
- LATAM
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