Market Trends of Freight Forwarding Industry
Growth In Cross-Border and Sea Trade Driving the Forwarding Industry
The freight forwarding market size has grown significantly, driven by the increasing movement of seaborne transport and cross-border trade. Increasing demand for efficient logistics solutions has been created by the increase in cross-border trade enabled by globalization and international business cooperation.
In September 2023, to monitor progress in the construction of transport, logistics, and trade centers on the borders with China, Russia, the Kyrgyz Republic, Uzbekistan, and the Caspian Sea, Kazakh Deputy Prime Minister, Serik Zhumangarin, convened a meeting of the operational headquarters. The construction work is currently underway and is expected to be completed by 2030. With an accommodation of 10 million tons per year, the terminal can house a 1-million-ton general cargo terminal, a 1.5-million-ton grain terminal, a 5.5-million-ton liquid cargo terminal, and a 2-million-ton universal terminal.
Moreover, the importance of freight forwarding industry services is further strengthened by increased sea trade due to a large volume of goods transported globally. One of the global freight forwarding companies, C.H. Robinson opened a new facility to facilitate trade across the Mexican border in September 2023. In Laredo, Texas, it is the largest cross-border logistics facility. This enlarges the company's footprint at the Mexican border to 1.5 million square feet (about half the area of a large shopping mall), with 400,000 square feet of warehousing space, 154 dock doors, and room for 700 trailers.
Increasing Air Freight to Reduce Time Propelling the Market Growth
The potential for significant freight forwarding industry growth lies in encouraging a higher use of air freight within the logistics sector. Air freight is an efficient option for time-sensitive consignments, particularly for perishable and high-value goods, because of the rapidity of transport.
The air freight forwarding market share of North America is on an exponential rise. As of October 2023, American Airlines Cargo benefited from the expanded winter schedule of more than 12,500 round-trip flights operated by American Airlines between November and March 2024. The carrier operates with increased frequencies on all major international markets, with more than 6,900 widebody flights dedicated to transatlantic routes.
In August 2023, Cargo-partner launched a new air freight solution originating in Chicago to assist clients who export their goods to the United Kingdom. On 1 June 2023, Cargo-partner started a new consolidation of air freight operations from Chicago to Heathrow Airport in London, and it provides support for its domestic and international customers. The service offers weekly departures, with an in-house team of trade experts overseeing the service.
