Global Freight Forwarding Market was Worth US$ 204.6 Billion in 2019 and is Expected to Reach US$ 277.5 Billion by 2028, Growing at a CAGR of 5.0% between 2021 and 2028

Freight Forwarding

Freight forwarding is the shipment and coordination of goods from one location to another via multiple or a single carrier by sea, air, rail, or road. Other responsibilities of a freight forwarder include warehouse planning, cargo insurance, and other duties. The global Freight Forwarding Market is divided into modes of transportation and services.

During the forecast period, the increase in international trade volume transported by air freight and ocean freight is expected to drive Freight Forwarding Market growth. The freight forwarding industry is heavily reliant on the volume of cargo transported. As a result, air and ocean freight forwarding companies must increase cargo volume to meet consumer demand. For example, in December 2019, Kuehne + Nagel International AG, a transport and logistics company based in Germany, increased its air cargo volume by 11.02 percent from 1.5 million air freight metric tonne in 2018 to 1.7 million air freight metric tonne in 2019.

Sinotrans Limited, a logistics company based in Germany, increased its ocean container capacity by 11.3 percent in December 2019 from 3.3 million twenty-foot equivalent unit (TEU) in 2018 to 3.7 million twenty-foot equivalent unit (TEU) in 2019. In terms of region, Europe dominated the Global Freight Forwarding Market in 2019, accounting for 31.8 percent of total market value, followed by Asia Pacific and North America, respectively. The presence of major players such as Kuehne + Nagel, DHL, DB Schenker, and Panalpina Inc. has largely contributed to the region's growth.

COVID-19 has had a significant impact on nearly every industry, including infrastructure, retail, manufacturing, logistics, and others. To combat the COVID-19 pandemic, several governments around the world, including the United States, France, India, and Italy, have imposed nationwide lockdowns to limit the spread of COVID-19 disease. For example, the Government of India has imposed a lockdown from June 1 to July 1 until further notice. Due to the Lockdown, freight transport volumes in most parts of Asia may be reduced by up to half by the end of 2020.