Freight forwarding refers to the movement of goods by land, air or sea from the shipper to the recipient. Freight forwarding companies specialize in supply chain coordination and documentation for international shipments. They consolidate individual shipments to achieve economies of scale in transport. The globalization of manufacturing has led to the growth of cross-border trade. Goods frequently change hands across national borders in fragmented supply chains. The need for cost-effective and timely transport of goods over long distances has grown significantly.

The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Rising global trade presents a major market opportunity for freight forwarders. As corporations expand their operations globally to source materials and sell goods worldwide, the volumes of cross-border shipments increase. International trade regulations become complex with varying customs requirements across nations. Freight forwarders provide a simplified single point of contact for arranging shipments overseas through their network. They can offer cheaper rates through consolidation of cargo from multiple clients. With continued growth in international commerce, the market for freight forwarding services is poised to experience strong gains over the forecast period.

Porter's Analysis

Threat of new entrants: The Global freight forwarding market size has a medium threat of new entrants as it requires huge capital investment and also long term business relationships with client and suppliers.

Bargaining power of buyers: Buyers have medium bargaining power as there are many freight forwarding companies but buyers can negotiate for better rates.

Bargaining power of suppliers: Suppliers have low bargaining power as there are many suppliers (airlines, shipping lines etc) and freight forwarders can switch between suppliers.

 Threat of new substitutes: Threat of substitutes is low as there are no close substitutes for freight forwarding services.

Competitive rivalry: The freight forwarding market has high competitive rivalry among existing players due to large number of players operating globally.

SWOT Analysis

Strength: Global network presence, technological capabilities, diversified service offerings. Weakness: Thin profit margins, high operating costs, reliance on third party carriers. Opportunity: Growth in global trade, demand from fast growing industries like e-commerce. Threats: Economic slowdowns, trade tensions, disruptions from new technologies.

Key Takeaways

The global freight forwarding market is expected to witness high growth driven by rising international trade and growth in industries like e-commerce. The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

Regionally, Asia Pacific dominates the market currently owing to China being the manufacturing hub of the world and major economies like China, India driving the demand. The market in Asia Pacific region is projected to continue its dominance during the forecast period.

Key players operating in the freight forwarding market are Abbott Laboratories, Amgen Inc., GlaxoSmithKline, Johnson and Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Inc., Roche, and Sanofi €“ Aventis. Abbott Laboratories provides integrated service offerings including ocean freight, air freight, road transport, warehousing and value-added services. Amgen specializes in sea and air freight solutions for industries like healthcare, chemicals etc.

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