Global Freight Forwarding 2024

Viki Keckarovska is a Senior Research Analyst with vast experience in the design, implementation and analysis of electronic and person-to-person surveys. Having worked across a number of sectors, including retail, luxury goods and FMCG, Viki is experienced in gaining valuable insights across brand perception, voice of customer and strategic re-positioning intelligence campaigns for B-to-B and B-to-C clients. As a member of the Market Research Society, Viki brings best practice in research, insight and analytics across Ti.

Shruti Sasidharan is a seasoned market research professional offering extensive experience in conducting in-depth market analysis and interpreting data across a multitude of sectors on a global level.

Thomas Cullen is a widely respected writer and has been analyzing the global logistics market for over 15 years. He has edited a number of international publications and written for most of the leading trade publications in Europe. He has written several in-depth reports on a variety of subjects including Automotive and Chemical logistics.

The Global Freight Forwarding 2024 Report from Ti Insight – the leading provider of market research to the global logistics industry – shows that the global freight forwarding market continues to normalise, with demand for air and sea freight forwarding services remaining soft.

Challenges arising from a global economic downturn, shifts in consumer behaviour, and an oversupply surpassing demand have led the global freight forwarding market to contract by 1.3% in real terms (holding prices and exchange rates constant) in 2023.

The performance of the market can be attributed to the weakness in air freight forwarding, which shrank by 2.1% in 2023. However, sea freight forwarding has also had a less than desirable performance, contracting by 0.6%. The global economic downturn is the main underlying reason for the disappointing results in the forwarding market.

The Global Freight Forwarding 2024 report is written by industry researchers, analysts and utilising data from Ti’s GSCi knowledge portal, a data powerhouse with over 1 million pieces of data and analysis.

Thomas Cullen, Chief Analyst at Ti, says: “The market for freight forwarding has reflected the volatility of the wider market for air and sea freight over the past four years. For large freight forwarders especially, the years 2020-22 were a boom, with revenues increasing by half and profits doubling. However, 2023 saw results falling ‘back-to-earth’ with profits and revenues falling as the markets returned to what might be called some sort of normality. However, the market remains complex with exceptional events, such as the effective obstruction of the Suez Canal exerting effects on the market that have specific effects on different types of providers. In particular the balance between non-asset-based service providers such as freight forwarders and asset owners such as airlines and shipping lines has experienced significant instability.”

Report highlights

• The global freight forwarding market contracted by 1.3% in real terms (holding prices and exchange rates constant) in 2023, bringing the market value to €192,730m.
• In nominal terms (holding exchange rates constant only), the global freight forwarding market contracted by 45.6% in 2023. This significant drop can be attributed to reduced freight rates for air and sea compared to last year.
• The global forwarding market is expected to expand slightly in 2024 (1.7% in real terms).
• The Asia Pacific freight forwarding market experienced the third-largest market contraction compared to the other regions. However, it remains the largest region, accounting for 35% of the global freight forwarding market.
• Ti data shows that the total the global freight forwarding market will see a real CAGR of 3.3% over the five years to 2028
• Ti’s State of Logistics Air and Sea Freight Forwarding Survey 2024 reveals that 91.1% of freight forwarders are currently experiencing increased pressure on margins. Rising competition and stronger negotiation by clients continue to be the main reasons for the increased pressure on margins. Targeting higher-margin clients and offering more value-added services are likely to be the most successful strategies in pulling back eroding margins in the next 12 months.
• The exceptional market conditions of the past two years are long gone, and the markets are on a new trajectory, leading to significant downturn in revenue and profits among freight forwarders in 2023. 2023 saw results falling ‘back-to-earth’ with profits and revenues falling as the markets returned to what might be called some sort of normality. All of the top 20 forwarders saw revenue declines in 2023.
• Kuehne + Nagel continued to maintain its place as the leader in the Global freight forwarding market, with revenues of €15,988m in 2023.

The full report also analyses the competitive landscape in the global air and sea freight forwarding market and offers in-depth market projections and trade forecasts: an essential tool for business leaders making critical decisions.