International Freight Forwarding Market Size

International Freight Forwarding Market Size

International Freight Forwarding Market size was valued at USD 112.1 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 and 2032. The continuous expansion of global trade and the rapid growth of the economy in emerging markets are driving the market. In addition, companies increasingly rely on efficient logistics and freight forwarding services to navigate the complexities of international shipping.

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As countries become more economically interconnected, businesses are sourcing materials, manufacturing products, and selling goods overseas at an increasing rate. This surge in international trade creates a demand for efficient and reliable methods of transporting goods. Moreover, with the growth of the global economy and international trade, more goods are shipped around the world.
 

For example, in April 2023, the World Trade Organization reported a 4% increase in global trade volumes compared to the previous year. This surge was due to the easing of pandemic-related restrictions and subsequent rebounds in manufacturing and consumer spending. Consequently, the international freight forwarding market experienced heightened activity as companies expanded their logistics operations to manage the growing volume of goods transported across borders.
 

The rise of e-commerce has led to a substantial increase in demand for freight forwarding services. As consumers and businesses increasingly buy products online, there is a growing requirement for efficient logistics solutions that can manage the transportation and delivery of goods across borders. E-commerce depends heavily on swift and dependable delivery services. Customers now anticipate quick arrival times for their online purchases, often expecting options such as same-day or next-day delivery.
 

In response, freight forwarders have adjusted by offering expedited shipping choices like airfreight and express services to meet these expectations. For example, in November 2023, DHL made a significant investment in its e-commerce logistics infrastructure to handle the surge in online shopping during the holiday season. This initiative involved expanding fulfillment centers and improving last-mile delivery capabilities.
 

International trade requires navigating a complex set of regulations and customs procedures that vary between countries. In addition, several factors contribute to higher costs in the international freight forwarding market. Fluctuations in fuel prices, rising insurance premiums, and labor shortages can all result in higher transportation and operational expenses. Moreover, the global supply chain is vulnerable to disruptions caused by diverse factors such as severe weather events, political instability, labor strikes, and accidents. These disruptions can lead to delays, shipping shortages, and price fluctuations, posing challenges for freight forwarders in terms of predictability and effective planning. As a result, all these factors collectively hamper market growth.