The freight forwarding market involves coordinating and executing import and export shipments across various modes of transportation. Freight forwarding services include cargo transportation via roadways, railways, ocean, and airways as well as customs clearance, warehousing and distribution. The growing global trade owing to rising industrialization and consumerism has created opportunities for exports and imports of various goods around the world. This has significantly increased the demand for freight forwarding services to ensure seamless transportation of shipments.
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.
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.
The growing demand for third party logistics from manufacturing and retail industries has propelled the Freight Forwarding Market Growth. Outsourcing of logistics functions allows companies to focus on their core competencies. This has significantly increased the demand for freight forwarders from small and medium enterprises globally.
Advancements in trucking technologies such as telematics, IoT sensors and fleet management solutions have enabled real-time monitoring of shipments. This has improved visibility, reduced delays and damages during transportation. Adoption of blockchain is also enabling transparent and secure documentation exchange between forwarders and clients.
Market Trends
Customized supply chain solutions and value added services are the key trends being witnessed in the freight forwarding market. Forwarders are offering single-window services covering requirements from origin to destination. Sustainability initiatives involving use of cleaner fuels, route optimization and multi-modal transport are also gaining traction.
Market Opportunities
Growing e-commerce industry worldwide is opening new opportunities for freight forwarders. Optimizing delivery timelines and providing cost-effective solutions for bulky shipments will help capture more shares. Developing economies in Asia and Latin America markets present scope for innovation and service extensions by experienced global players.
Impact of COVID-19 on Freight Forwarding Market
The onset of the COVID-19 pandemic had a significant impact on the freight forwarding market. Supply chains were disrupted worldwide as countries imposed strict lockdowns and restrictions on travel and transportation. Demand for freight forwarding services dropped sharply as industries shut down production facilities and cancelled orders. Many freight forwarders were hit hard financially due to cancellation of contracts and delay or non-payment of dues. However, as essential industries continued operations, there was still demand for transportation of critical goods like pharmaceuticals, medical supplies and food items. Freight forwarders played a crucial role in ensuring supply of such goods despite challenges.
As lockdowns ease globally and economic activities resume gradually, the freight forwarding market is recovering. However, complete recovery to pre-pandemic levels will take time as international trade and cross-border movement have still not normalized fully. Freight forwarders are adapting to the new normal by focusing more on efficiency and cost-reduction. Digitalization of processes is being accelerated to improve visibility and optimize operations. Collaboration within supply chains is being strengthened to ensure resilience. Freight forwarders need to consider strategies like multimodal transport integration, customized solutions for different industries and segments, and technology-enabled services to cater to the evolving market dynamics in the post-COVID world.
Geographical Regions with Highest Value for Freight Forwarding Market
North America is one of the regions where the freight forwarding market is highly concentrated in terms of value. This is because of the large manufacturing and export base in countries like the US and Canada. Both domestic and international transportation requirements in the region generate significant demand for freight forwarding services. Freight forwarders play an important role in transportation of manufactured goods between the US, Canada and Mexico under NAFTA.
Another region with high value concentration for the freight forwarding market is Asia Pacific. With major manufacturing hubs in countries such as China, India, Japan and South Korea, international trade volumes within the region and with other parts of the world are massive. The dense network of seaports and airports facilitate efficient transportation of parts and finished goods. Freight forwarders have substantial operations across Asia Pacific to cater to the extensive transportation needs of different industries.
Geographical Region with the Fastest Growing Freight Forwarding Market
Africa is projected to be the fastest growing region for the freight forwarding market during the forecast period. The improving economic conditions and rising industrial and infrastructure development activities in countries across Africa are driving up the demand for transportation of machinery, equipment and raw materials. Growing intra-Africa trade under the African Continental Free Trade Area (AfCFTA) agreement will further boost cargo volumes requiring freight forwarding services. Freight forwarders are expanding their service networks across African countries to capitalize on the opportunities arising from rising trade. Digitization initiatives are also gaining traction to enhance delivery capabilities and handle larger transaction volumes stemming from Africa's increasing integration into global trade. The growth percentage of freight forwarding market in Africa is expected to be higher than the global CAGR during the forecast years.
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