The freight forwarding market has recovered strongly this year and is expected to grow by 11.6%
- Date: Jun 25, 2021
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- Categories: News
The report “Global Freight Forwarding Market in 2021” released by Transport Intelligence (Ti), an industry intelligence analysis agency, shows that after the outbreak of the new crown epidemic, the global freight forwarding market has shrunk sharply in 2020 and is now entering a stage of recovery.
In 2020, the global freight forwarding market shrank by 8.7%, but it is expected to rebound strongly in 2021, with an increase of 11.6%, with a compound annual growth rate of 5% from 2020 to 2025.
Air cargo will grow by 14.9% in 2021, and the compound annual growth rate for 2020-2025 will be 5.4%.
Shipping will grow by 7.6% in 2021, with a compound annual growth rate of 4.5% from 2020 to 2025.
The air and sea freight rates remain at record levels, and the capacity is tight and the volume fluctuates greatly.
Digital freight forwarders invest in assets and customer service teams and technology to achieve more end-to-end value-added services, and the competition with established companies is becoming increasingly fierce.
The report analyzed that the global freight forwarding market shrank by 8.7% in 2020, which was the worst year since the financial crisis. The shipping market shrank by 3.8% and the air freight market fell by 12.3%. However, with the recovery of freight volumes, the freight forwarding market is expected to rebound strongly, with a growth rate of 11.6% in 2021 and a compound annual growth rate of 5% in 2020-2025.
The shipping agency market is expected to grow by 7.6% in 2021, with a compound annual growth rate of 4.5% from 2020 to 2025. The growth of ocean freight forwarding will continue until 2025. The driving factors include the continued recovery of freight volume, the switch from air freight to ocean freight, and the increased trade volume brought about by the new trade agreement.
Air freight forwarding will grow by 14.9% in 2021, with a compound annual growth rate of 5.4% from 2020 to 2025. Growth will be strongly driven by the recovery of global trade and intensive industries such as high-tech, pharmaceuticals and cross-border e-commerce.