Global freight forwarding market to expand 1.7% in 2024
The global freight forwarding market faced a downturn in 2023. According to the Global Freight Forwarding 2024 Report from Ti insight, market performance contracted by -1.3%, in real terms. The decline was brought on by a global economic slowdown, changes in consumer behavior, and oversupply.
The market’s weak performance was evidenced by a -2.1% decline in air freight forwarding and a -0.6% decline in sea freight forwarding. Thomas Cullen, Chief Analyst at Ti, said it also mirrored the unpredictability of the broader market trends in air and sea freight. He described that between 2020 and 2022, the industry saw significant growth, particularly for large forwarders, where revenues increased by half and profits doubled. However, 2023 marked a return toward normality, with revenues and profits falling.
Cullen said the market remained complex. Events like the Suez Canal blockage have had varying effects on different freight providers. There has also been instability between non-asset-based service providers, such as freight forwarders, and asset owners, like airlines and shipping lines.
Although the Asia-Pacific market contracted significantly, the region remains the largest, accounting for 35% of the global market share. The global freight forwarding market is expected to see a slight growth of 1.7%, in real terms, in 2024.
