Global Freight Forwarding Market Is Estimated To Witness High Growth
Owing To Increasing International Trade and E-commerce Industry



The global freight forwarding market is estimated to be valued at US$ 204.6
billion in 2019 and is expected to exhibit a CAGR of 5.0% over the forecast
period of 2021-2028, as highlighted in a new report published by Coherent
Market Insights.



Market Overview:

The freight forwarding market involves the transportation of goods and products
from one location to another, providing various services such as packaging, documentation,
customs clearance, and logistics management. It plays a crucial role in
facilitating international trade and ensuring the efficient movement of goods
across borders. With the rapid growth of the e-commerce industry and increasing
global trade, the demand for freight forwarding services has been witnessing
significant growth. Freight forwarders act as intermediaries between
importers/exporters and transportation service providers, offering
cost-effective and efficient solutions for the movement of goods.



Market Dynamics:

The freight forwarding market is driven by two key factors: increasing
international trade and the growth of the e-commerce industry. Firstly,
globalization has led to a surge in international trade, with businesses
expanding their operations globally and consumers demanding products from
different parts of the world. This has resulted in a higher demand for freight
forwarding services to ensure the smooth transportation of goods across
borders.



Secondly, the rapid growth of the e-commerce industry has fueled the demand for
efficient logistics and supply chain management. E-commerce companies rely
heavily on freight forwarding services to deliver products to customers in
different countries. With the rising popularity of online shopping, consumers
expect fast and reliable delivery services, which can be fulfilled by freight
forwarders.



For example, companies like DHL Global Forwarding and UPS Supply Chain
Solutions have developed specialized e-commerce logistics solutions to cater to
the specific needs of online retailers. These solutions include options such as
express delivery, order tracking, and customs clearance, providing a seamless
and efficient delivery experience for e-commerce customers.



SWOT Analysis:

- Strengths: (1) Global network and expertise of major players like DHL Global
Forwarding and DB Schenker, (2) Strong relationships with transportation
service providers.

- Weaknesses: (1) Dependence on external factors such as government regulations
and geopolitical issues, (2) Increasing competition from new entrants and
digital freight forwarding platforms.

- Opportunities: (1) Technological advancements such as blockchain and
artificial intelligence for enhanced visibility and productivity, (2) Growing
demand for specialized logistics solutions for industries like healthcare and
automotive.

- Threats: (1) Volatility in fuel prices and transportation costs, (2) Trade
disputes and tariffs impacting global supply chains.



Key Takeaways:

In terms of market size, the global Freight
Forwarding Market Growth is expected to witness high growth, exhibiting
a CAGR of 5.0% over the forecast period. This growth can be attributed to
increasing international trade and the booming e-commerce industry. With the
expansion of businesses globally, the need for efficient transportation and
logistics services has become crucial. The Asia-Pacific region is expected to
dominate the market, driven by the rapid growth of emerging economies such as
China and India. Key players operating in the global freight forwarding market
include Agility, DHL Global Forwarding, Expeditors International, and Kuehne +
Nagel International AG. These companies have a global presence and offer a wide
range of services to cater to the diverse needs of their customers.



In conclusion, the global freight forwarding market is poised for significant
growth due to increasing international trade and the rise of the e-commerce
industry. Freight forwarders play a vital role in ensuring the smooth movement
of goods across borders, providing cost-effective and efficient solutions for
businesses. With advancements in technology and the growing demand for
specialized logistics solutions, the market is expected to witness further
opportunities for growth.