Global Freight Forwarding 2022

Now available to download

Port congestion, sky high freight rates and e-commerce trends provided the perfect environment for impressive freight forwarding growth in 2021. The market experienced its fasted expansion rate in a decade, growing by 11.2%. 2022 growth is set to slow to 5.7% as global conditions shift, and new pressures emerge.

So, what’s the future for forwarding in 2022 and beyond?

Ti’s Global Freight Forwarding 2022 market report provides an up to date view of the freight forwarding landscape, covering market growth rates, the role and importance of digital forwarders and marketplaces, the future for air freight, M&A activity and comparative profiles of leading providers and market entrants.

The report addresses the impact of economic conditions on the market – including war in Ukraine, ongoing increased freight rates and China’s zero-Covid policy. The report also contains a comprehensive assessment of the digital forwarding landscape & M&A activity.

Use the report to keep ahead of developing market trends, seize opportunities, and to understand the growth trajectory of key logistics markets and potential emerging markets.

This report contains:

  • 2021 market sizes & growth rates, 2022 projections & forecasts to 2026 – split by region, air & sea.
  • Digital freight forwarding landscape analysis.
  • Ti’s 2022 Digital Freight Forwarding & Global Freight Procurement survey findings.
  • Examination of M&A activity within the market.
  • Analysis of the state, and future of air freight.
  • Comparative profiles of the largest freight forwarding companies.
  • Analysis of the present & future of freight forwarding.

This report contains:

  • 2021 market sizes & growth rates, 2022 projections & forecasts to 2026 – split by region, air & sea.
  • Digital freight forwarding landscape analysis.
  • Ti’s 2022 Digital Freight Forwarding & Global Freight Procurement survey findings.
  • Examination of M&A activity within the market.
  • Analysis of the state, and future of air freight.
  • Comparative profiles of the largest freight forwarding companies.
  • Analysis of the present & future of freight forwarding.

Key Questions:

  • How fast is the freight forwarding market forecast to grow by 2026?
  • Which regions are experiencing the fastest growth?
  • What are the key factors influencing demand, growth, opportunities and challenges?
  • What are the key challenges facing digital forwarders and marketplaces?
  • What’s the best digitisation strategy for my business?
  • What are the latest logistics purchasing behaviour trends and how are contractual relationships changing?
  • What are the reasons behind the recent upturn in M&A activity? Are more mega-deals are expected?
  • Freight forwarders are experiencing an extraordinary ‘uplift’ in profitability, will this be sustained?

Key Findings:

  • The global freight forwarding market grew by 11.2% in 2021, and is forecast to grow 5.7% in 2022.
  • 2022 growth will be driven by air freight.
  • 2026 forecasts are more pessimistic.
  • Congestion in the ocean freight market continues to push traditional ocean shippers into the air freight market.
  • Ocean freight and port congestion show few signs of improvement.
  • Ti’s 2022 Digital Forwarding Survey reveals digital forwarders and booking platforms are used by 81% of surveyed shippers & LSPs.
  • To become game-changers, digital forwarders must combine smart technology with operational experience.
  • The entrance of shipping lines into the acquisition market has created a new driver of industry consolidation.

TABLE OF FIGURES 6
1 M&A IN THE SHIPPING & FREIGHT FORWARDING INDUSTRY: RACING TOWARDS CONSOLIDATION 10
EVOLUTION OF THE GLOBAL FREIGHT INDUSTRY 10
2. FREIGHT FORWARDERS AND THE AIRFREIGHT MARKET OF 2020-2022 19
2.1 COMPETITION BETWEEN FREIGHT FORWARDERS 23
2.2 LARGE, MEDIUM AND SMALL 24
2.3 CONCLUSION 27
3.THE AIR FREIGHT MARKET BECOMES MORE CROWDED -IMPLICATIONS FOR THE FUTURE 29
DOMESTIC VS INTERNATIONAL 30
VOLUMES 30
E-COMMERCE 33
4. FULL STEAM AHEAD – DIGITALISATION IN THE FREIGHT FORWARDING INDUSTRY 40
4.1 INTRODUCTION 40
4.2 SURGE OF FUNDING IN DIGITAL FREIGHT FORWARDING START-UPS 41
4.3 THE GLOBAL FREIGHT FORWARDING DIGITAL LANDSCAPE 43
4.4 DIGITAL FREIGHT FORWARDING SURVEY 2022 45
4.4.1 SAMPLE CHARACTERISTICS 45
4.4.2 USAGE OF DIGITAL FREIGHT BOOKING PLATFORMS/MARKETPLACES AND DIGITAL FORWARDERS 45
4.4.3 TYPES OF SERVICES USED 47
4.4.4 DIGITAL FORWARDERS VS TRADITIONAL FORWARDERS 50
4.4.5 GROWTH POTENTIAL OF DIGITAL FORWARDERS 51
4.5 CONCLUSION 53
5. GLOBAL FREIGHT PROCUREMENT SURVEY 2022 54
5.1 ACCESS TO CAPACITY 55
5.2 USE OF THE SPOT MARKET 57
5.3 AVERAGE CONTRACT LENGTH 58
5.4 TYPE OF CONTRACTS 59
5.5 USE OF DATA FOR FREIGHT PROCUREMENT 60
5.6 SELECTION OF TRANSPORTATION PARTNERS 61
5.7 SWITCHING LSPS - WHAT MAKES A SHIPPER SWITCH? 62
6 GLOBAL FREIGHT FORWARDING MARKET SIZE & FORECASTING 2021-2026 66
6.1 GLOBAL FREIGHT FORWARDING MARKET SIZE & GROWTH 66
6.1.1. GLOBAL FREIGHT FORWARDING MARKET SIZE & GROWTH 2021, 2022 (F) AND 2026 (F) 66
6.2. OVERVIEW OF REGIONAL PERFORMANCE 68
6.3. HIGH-LEVEL MARKET DEVELOPMENT 71
6.3.1 DEMAND-SIDE CONTRIBUTIONS TO AIR AND SEA FREIGHT FORWARDING GROWTH 71
6.3.2 SUPPLY-SIDE CONSTRAINTS TO AIR AND SEA FREIGHT FORWARDING GROWTH 75
6.4 FREIGHT FORWARDING MARKET SIZE & GROWTH BY REGION 79
6.4.1 ASIA PACIFIC 79
6.4.2 EUROPE 81
6.4.3 MENA 83
6.4.4 NORTH AMERICA 84
6.4.5 SOUTH AMERICA 86
6.4.6 SUB-SAHARAN AFRICA 87

7 GLOBAL FREIGHT FORWARDING TOP 20S 90
7. 1 TOP 20 GLOBAL FREIGHT FORWARDERS BY REVENUE AND MARKET SHARES 90
7.2 TOP 20 GLOBAL AIR FREIGHT FORWARDERS BY REVENUE AND MARKET SHARE 93
7.3 TOP 20 GLOBAL AIR FREIGHT FORWARDERS BY TONNES AND MARKET SHARES 95
7.4 TOP 20 GLOBAL SEA FREIGHT FORWARDERS BY REVENUE AND MARKET SHARES 97
7.5 TOP 20 GLOBAL SEA FREIGHT FORWARDERS BY TEUS AND MARKET SHARES 99

8. GLOBAL FREIGHT FORWARDING PROVIDERS 101
8.1 BOLLORÉ GROUP 101

8.1.1 BACKGROUND 101

  8.1.2 FINANCES 102
8.1.3 OPERATIONS AND VOLUMES 104
8.1.4 MERGERS, ACQUISITIONS AND INVESTMENTS 106
8.1.5 TECHNOLOGY 106
8.1.6 SUSTAINABILITY 106
8.1.7 OUTLOOK 107
8.2 DB SCHENKER 108
8.2.1 BACKGROUND 108
8.2.2 FINANCES 109
8.2.3 AIR AND OCEAN FREIGHT FINANCES 110
8.2.4 AIR FREIGHT VOLUMES 111
8.2.5 SEA FREIGHT VOLUMES 112
8.2.6 TECHNOLOGY 113
8.2.7 SUSTAINABILITY 114
8.2.8 OUTLOOK 114
8.3 DHL GLOBAL FORWARDING, FREIGHT 115
8.3.1 BACKGROUND 115
8.3.2 FINANCES 115
8.3.3 OCEAN FREIGHT 117
8.3.4 AIR FREIGHT 119
8.3.5 MERGERS AND ACQUISITIONS 121
8.3.6 EXPANSIONS 121
8.3.7 SUSTAINABILITY 121
8.3.8 OUTLOOK 121
8.4 DSV PANALPINA 123
8.4.1 BACKGROUND 123
8.4.2 ACQUISITION OF AGILITY’S GLOBAL INTEGRATED LOGISTICS (GIL) 123
8.4.3 FINANCES 125
8.4.5 VOLUMES 128
8.4.6 MYDSV 131
8.4.7 SUSTAINABILITY 131
8.4.8 – OUTLOOK 132
8.5 EXPEDITORS 133
8.5.1 BACKGROUND 133
8.5.2 FINANCES 134
8.5.3 VOLUMES 136
8.5.5 OPERATIONS 138
8.5.6 – TECHNOLOGY 138
8.5.7 OUTLOOK 139
8.6 KERRY LOGISTICS 140
8.6.1 BACKGROUND 140
8.6.2 FINANCES 141
8.6.3 SEA FREIGHT 143
8.6.4 AIR FREIGHT 144
8.6.5 TECHNOLOGY 144
8.6.6 OUTLOOK 144
8.7 KUEHNE + NAGEL 146
8.7.1 BACKGROUND 146
8.7.2 FINANCES 146
8.7.3 SEA LOGISTICS 149
8.7.4 AIR LOGISTICS 151
8.7.5 MERGERS AND ACQUISITIONS 152
8.7.6 SUSTAINABILITY 153
8.7.7 STRATEGIC OUTLOOK 153
8.8 KINTETSU WORLD EXPRESS 154
8.8.1 BACKGROUND 154
8.8.2 FINANCES 155
8.8.3 AIR FREIGHT 156
8.8.4 SEA FREIGHT 158
8.8.5 OPERATIONS 160
8.8.6 SUSTAINABILITY 160
8.8.7 OUTLOOK 161
8.9 NIPPON EXPRESS 162
8.9.1 BACKGROUND 162
8.9.2 FINANCES 163
8.9.3 OPERATIONS 165
8.9.4 SUSTAINABILITY 166
8.9.5 OUTLOOK 166
8.10 SINOTRANS 167
8.10.1 BACKGROUND 167
8.10.2 FINANCES 168
8.10.3 VOLUMES 170
8.10.4 OPERATIONS 172
8.10.5 TECHNOLOGY 172
8.10.6 SUSTAINABILITY 172
8.10.7 OUTLOOK 172

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, Violeta brings best practice in research, insight and analytics across Ti.

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. Thomas has been vital in adding value to Ti’s Logistics Briefing service for the last 10 years and works on many global consultancy projects.

Alex Bullard joined Ti as a Researcher in the autumn of 2021 having graduated from Newcastle University with a Geography degree. Some University module were aimed at understanding globalisation processes which helped kick start the desire to work in this industry. He has always had a subconscious passion for logistics founded on a love for maps and all places around the world. He is keen to continue to learn more about the way in which global supply chain helps the world go round.

Freight forwarding market rebounding with growth expected at 5.7% in 2022.

22nd June, 2022, Bath, UK – Ti’s latest report, Global Freight Forwarding 2022, shows that in 2021 the global forwarding market rebounded and exceeded its pre-pandemic levels. However, limited capacity and record-high freight rates present a challenging market for shippers, as well as opportunities for extraordinary ‘uplift’ in the profitability of freight forwarders.

  • The global freight forwarding market grew by 11.2% in real terms during 2021, the fastest expansion in a decade. The market is forecast to grow 5.7% in 2022 and at a 3.7% CAGR over the five years to 2026.
  • 2022 freight forwarding growth will be driven by air freight, which is forecast to grow by 6.1% in real terms.
  • 2026 forecasts are more pessimistic due to inflation, the war in Ukraine, and consumer spending slowing down.
  • The air forwarding market is forecasted to exhibit slightly faster growth, expanding at a 4.0% CAGR from 2021-2026, while the sea forwarding market is expected to grow slightly less quickly at 3.6% CAGR over the period.
  • Kuehne + Nagel and DSV lead the global freight forwarding market. The two market leaders have successfully integrated acquisitions in recent years which has helped both to top the list.
  • The entrance of shipping lines into the acquisition market has created a new driver of industry consolidation, not least due to the carriers’ almost unlimited funds and access to ‘cheap’ money.
  • Digital forwarders must combine smart technology with operational experience to be game changers in the industry. Achieving both objectives while remaining profitable will be a challenge, especially if access to capital becomes more limited in the future.

After experiencing one of its most challenging years to date amid the Covid-19 pandemic, the global freight forwarding market bounced back strongly and grew by 11.2% in real terms in 2021. This is the fastest growth rate since 2011, bringing the market value to €269,656m.

The market’s expansion was driven by global trade which reached new record highs during the year as recovery from the Covid-19 pandemic boosted demand. As well as the phasing out of pandemic-related restrictions on economic activity, government support schemes and economic stimulus packages introduced in many countries remained, keeping demand for goods at elevated levels. Factors such as the expansion of the e-commerce industry and the rise of free trade agreements have also been contributors to the growth of the global digital freight forwarding market in 2021.

As the drivers of the growth momentum are likely to gradually abate, global trade growth is expected to moderate in 2022. As a result of this continued but weakened global economic recovery, the global forwarding market is expected to grow at a slower pace of 5.7%. Continuing the trend from 2021, growth will be driven by the air freight forwarding market, which is forecasted to grow by 6.1% in real terms. The sea freight forwarding market will have to endure more months of challenging conditions caused by the capacity crunch as new capacity is not set to kick in till 2023. It is set to grow at 5.2% in 2022.

2026 forecasts are more pessimistic than previously as inflation challenges intensify, the war in Ukraine threatens global energy supplies and consumer spending slows further. As a result, the global freight forwarding market is expected to grow at a 3.7% CAGR over the five years to 2026. The air forwarding market is forecast to exhibit slightly faster growth, expanding at a 4.0% CAGR, while the sea forwarding market is expected to grow slightly less quickly at 3.6% CAGR over the period. Increases in cross-border e-commerce do however provide a bit more optimism, along with the return of capacity via passenger flights after the ending of Covid restrictions.

The report also provides a snapshot of the funding scene in the digital forwarding sector and discusses the impact that the recent surge in investments will have on established start-ups and new market entrants. The report analyses the competitive landscape in the digital freight forwarding market and compares digital forwarders against one another based on their revenues, global reach, transport mode and freight transported. The findings of Ti’s latest Digital Freight Forwarding Survey 2022 serve to assess the market penetration and outlook of digital forwarders and identify the capability gaps digital forwarders need to close.

Furthermore, the findings from Ti’s Global Freight Procurement 2022 survey provide insight into the latest logistics purchasing behaviour trends and the procurement strategies shippers are employing to better navigate the unpredictable market volatility.

“The global freight forwarding sector has been plagued by a number of supply and demand-side shocks in the past year, driving instability in the market,” said Viki Keckarovska, Ti’s Senior Research Analyst. “Despite all economic indicators pointing towards continued strong demand for cargo, capacity constraints result in lost growth opportunities. Demand for capacity continues to outstrip supply, contributing to increased freight rates and consequently increased yields and revenues among forwarders. Driven by these challenging market conditions, shippers are re-assessing their freight procurement strategies and contractual relationships with LSPs to adjust to the ever-changing environment. Finally, the digitalization trend in the forwarding industry, which was already gathering pace before the pandemic, has been accelerated further by the crisis, with the adoption of digital forwarders, online freight booking platforms and marketplaces increasing threefold since 2019.”

 

This report is perfect for:

  • Supply chain managers and directors
  • Logistics procurement managers
  • Global manufacturers
  • Banks and financial institutions
  • Marketing managers
  • Knowledge managers
  • Investors
  • All C-level executives

Report brochure:

To download a copy of the brochure please enter your details below.