Mexico Freight Forwarding Market Size (2024 - 2029)

Mexico Freight Forwarding Market Analysis

The Mexico Freight Forwarding Market size is estimated at USD 6.17 billion in 2024, and is expected to reach USD 9.80 billion by 2029, growing at a CAGR of 9.71% during the forecast period (2024-2029).

• The increase in foreign trade drives the market. Furthermore, the market is driven by the growth of manufacturing and allied sectors in the country.
• Mexico is highly dependent on foreign trade, which represented 83.6% of its GDP in 2021 (World Bank, latest available data). The country mainly exports cars (14.3%), automatic data-processing machines (6.7%), vehicle parts (6.2%), petroleum oils (4.8%), and monitors and projectors (3.2%). As for imports, Mexico’s main purchases include parts and accessories for motor vehicles (5.1%), petroleum oils (4.9%), electronic integrated circuits (4.3%), petroleum gas (3.1%), and telephone sets (2.7%).
• According to Internal Monetary Fund (IMF) Foreign Trade Forecasts, the volume of exports of goods and services increased by 6.9% in 2022 and is expected to decrease by 0.5% in 2023, while the volume of imports of goods and services increased by 5.4% in 2022 and was expected to increase by 0.5% in 2023.
• The impulse that the government gives to foreign trade will give a natural boost to Mexican exports. In 2022, Mexico’s GDP amounted to approximately 1.47 trillion U.S. dollars. But, despite the optimistic outlook for foreign trade, the scenario is uncertain as many numbers are still tentative and, at times, disparate. In contrast to the 9% increase in exports predicted by COMCE for this year, the Economic Commission for Latin America and the Caribbean (ECLAC) predicts a rebound of up to 25% in the country’s exports.
• Mexican exports have become more competitive in comparison to its major export market and fellow NAFTA countries, which accounted for 81.2% of Mexico's total exports. The road sector was the most profitable in the transportation sector, accounting for approximately 91% of the entire transportation services industry value. NAFTA also solidified Mexico's trade links, with 84% of Mexican exports flowing to the United States and Canada.
• As a result, road freight accounts for the vast majority of the freight business. Mexico has risen to the top of the list of destinations for multinational corporations looking to establish manufacturing plants outside of Asia in the previous year. This situation, which is the inverse of offshore, is known as "nearshoring." This implies that businesses are gradually shifting a portion of their manufacturing to nations near their markets and with comparable time zones.
• The shift has been aided by the strong integration that exists between North American nations as a result of the T-MEC. This international agreement encourages trade between the markets of the United States, Canada, and Mexico. Mexico's unique location as an American nearshoring hub has made it an appealing choice for multinational corporations looking to expand their operations.
• Because of its proximity to the United States, the world's largest consumer market, the Latin American country is an excellent choice for firms looking to reduce shipping delays and transportation costs. Mexico has also used its favorable business environment to attract multinational firms eager to expand their operations. Recent trade agreements between the country and the United States and Canada have contributed to the development of the economy.

Mexico Freight Forwarding Industry Segmentation

Freight forwarding is the strategic planning and execution of logistics for the international movement of commodities on behalf of shippers. A freight forwarder, for example, will handle freight rate negotiations, container tracking, customs documentation, and freight consolidation, among other things. 

The Mexico freight forwarding market is segmented by mode of transport (air freight forwarding, ocean freight forwarding, road freight forwarding, rail freight forwarding), by customer type (B2C and B2B), and by application (industrial and manufacturing, retail, healthcare, oil and gas, food and beverages and other application). 

The report offers market size and forecast values (USD) for all the above segments.