Freight Forwarding Market Analysis & Forecast: 2025-2032

Freight Forwarding Market Size and Trends

The freight forwarding market is estimated to be valued at US$ 184.94 billion in 2025 and is expected to reach US$ 260.41 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.0% from 2025 to 2032.

Key Takeaways of the Global Freight Forwarding Market

• By service type, the air freight forwarding segment is projected to dominate the freight forwarding market, contributing 40.8% market share in 2025.
• By end-use industry, the transportation & warehousing segment is expected to lead the market, accounting for 46.2% share in 2025.
• By region, North America remains the dominant player in the freight forwarding market and is estimated to account for 41.7% of global market share in 2025.

Market Overview

The global freight forwarding market is set for sustained growth through 2032, fueled by the expansion of international trade, rising e-commerce volumes, and increasing need for efficient global logistics solutions. Freight forwarding services play a critical role in facilitating smooth and timely transportation of goods across borders, particularly through modes such as air, sea, and land.

The air freight forwarding segment is gaining prominence due to the growing demand for time-sensitive deliveries, especially in sectors like healthcare, electronics, and e-commerce. Meanwhile, the transportation & warehousing sector continues to drive demand, supported by supply chain optimization efforts and expanding storage infrastructure.

North America leads the global market, supported by robust trade networks, strong economic fundamentals, and advanced logistics infrastructure. However, the market faces challenges such as volatile fuel prices, regulatory complexities, and capacity constraints across transportation modes. Nevertheless, advancements in digital freight platforms, automation, and sustainable logistics practices are expected to shape the future of the freight forwarding industry positively.

AI Impacts on the Freight Forwarding Market

The freight forwarding industry is experiencing a digital revolution with the integration of artificial intelligence (AI), streamlining operations, enhancing route optimization, and improving predictive logistics. AI technologies are driving efficiency, reducing costs, and enabling smarter decision-making across global supply chains.

• DHL's Generative AI Initiatives (2024): In October 2024, DHL Supply Chain implemented Generative AI tools to enhance data management, customer support, and proposal accuracy. These tools assist in data cleansing and provide insights during proposal development, streamlining operations, and improving customer experience.
• Kuehne+Nagel's AI-Powered Road Carrier Platform (2024): In March 2024, Kuehne+Nagel continued to digitize its cooperation with road carriers by leveraging AI. The company introduced a web platform that enhances collaboration with road carrier partners, increasing operational efficiency across Europe, Africa, and the Middle East.
• Flexport's AI Analytics Tools (2025): In February 2025, Flexport launched a series of AI analytics tools, including Flexport Intelligence and Flexport Control Tower. These tools enable users to gain insights into supply chain performance and manage shipments, even when contracted with other carriers, enhancing visibility and control.

Market Concentration and Competitive Landscape

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• Leading players such as DHL (part of Deutsche Post AG), Kuehne+Nagel Inc., DB Schenker, DSV, and UPS (United Parcel Service of America, Inc.) have solidified their dominance in the global freight forwarding market. These companies leverage global logistics networks, advanced digital platforms, and integrated supply chain solutions to maintain a competitive edge and offer end-to-end freight management across air, ocean, and land transport.
• The market, while exhibiting consolidation at the top, also features a broad spectrum of major regional and specialized players including Agility Logistics, CEVA Logistics, FedEx Corporation, Nippon Express Co., Ltd., and Bolloré Logistics. This results in a moderately consolidated structure where established players coexist with niche operators like Kerry Logistics, Yusen Logistics, and Sinotrans Limited. Competitive dynamics are driven by global coverage, technology adoption (such as AI and automation), service customization, and strategic partnerships.

Current Events and Their Impact on the Freight Forwarding Market

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Market Trends

E-commerce Expansion Fueling Demand for Express Freight Solutions

The freight forwarding market is witnessing strong growth driven by the surge in e-commerce and direct-to-consumer (D2C) business models. As consumers increasingly expect next-day or even same-day deliveries, logistics networks are under mounting pressure to provide ultra-fast, reliable shipping. This has turned last-mile delivery into a critical focal point for service providers.

Traditional brick-and-mortar retailers are also accelerating their digital transformation by investing heavily in e-commerce platforms to meet evolving consumer behavior. As a result, global parcel volumes have surged, placing additional demands on transportation and delivery infrastructure.

Freight forwarders are well-positioned to capitalize on this trend due to their extensive experience in time-sensitive shipments, integrated value-added services, and global network reach. Their capabilities in coordinating last-mile delivery, handling overseas shipping, and implementing advanced technologies make them indispensable partners for e-tailers and retailers alike.

The rise of e-commerce is expected to remain a major growth driver for the freight forwarding market, spurring continuous investment in warehouse automation, air freight capacity, and AI-driven logistics optimization.

Market Opportunity: Growth of E-commerce and the Need for Enhanced Logistics Support

The rapid expansion of e-commerce from 2022 to 2025 has significantly increased the volume of smaller parcels and non-bulk shipments, necessitating advanced logistics solutions. This surge has led to a growing trend of outsourcing transportation and warehousing functions, as manufacturers and retailers seek greater flexibility and efficiency in their supply chains. The highly fragmented logistics market presents opportunities for larger players to consolidate and expand their market share through strategic mergers and acquisitions.

For instance, in May 2025, Amazon India received board approval to merge its logistics arm, Amazon Transportation Services, with its primary marketplace entity. This consolidation aims to streamline operations and enhance synergy between logistics and marketplace functions, improving efficiency and service delivery in the competitive Indian e-commerce landscape.

Segment Analysis

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Freight Forwarding Market Insights by Mode of Transport: Air Freight Forwarding Dominates Due to Time-Sensitive Delivery Demand

The air freight forwarding segment is projected to contribute the highest market share of 40.8% in 2025, primarily driven by the rising need for time-sensitive deliveries across global supply chains.

The rapid growth of global e-commerce has significantly boosted demand for fast delivery services. High-value, lightweight items such as electronics, fashion apparel, and collectibles are increasingly shipped via air freight to meet next-day or two-day delivery expectations. This delivery speed is critical for enhancing customer satisfaction and driving repeat purchases for online retailers.

In addition, the rise of just-in-time manufacturing has further reinforced the need for air freight services. Aircraft transport essential components, sub-assemblies, and finished goods between manufacturing hubs and distribution centers to support tight production schedules. The reliability, speed, and customs expertise provided by air logistics providers are essential for keeping modern supply chains running efficiently.

As e-commerce expands into emerging markets and diversifies across product categories, air cargo will remain pivotal to meeting accelerated delivery standards, reinforcing the dominant position of the air freight forwarding segment in the global market.

Freight Forwarding Market Insights by Services: Transportation & Warehousing Dominates Due to Efficient Cargo Movement and Strategic Storage

The transportation & warehousing segment is expected to account for the largest share of the freight forwarding market at 46.2% in 2025. The efficient movement of goods and interim storage are central to the role of freight forwarders in global trade.

Transportation, including air, sea, rail, and road, forms the core of freight forwarding operations, ensuring timely and coordinated delivery of goods across borders. Warehousing provides essential support by storing goods during transits, customs clearance, or while awaiting final distribution.

Specialized facilities, such as cold chain warehouses, cater to temperature-sensitive goods like pharmaceuticals and perishables. As global trade and supply chains become more complex, the demand for integrated transportation and warehousing solutions continues to grow, reinforcing the segment's dominant position in the freight forwarding market.

Regional Insights

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North America Freight Forwarding Market Analysis and Trends

North America is projected to hold a dominant 41.7% share of the global freight forwarding market in 2025. This strong position is supported by robust international trade activity, a mature logistics infrastructure, and the presence of major global freight forwarders headquartered in the U.S. and Canada.

The region benefits from high import and export volumes, particularly between NAFTA members and trading partners in Europe and Asia, driving demand for sophisticated freight solutions. Well-established B2B supply chains across sectors such as manufacturing, automotive, and retail further reinforce the need for efficient and scalable freight forwarding services.

Additionally, the ongoing expansion of cross-border e-commerce and the integration of advanced technologies like AI and IoT continue to enhance operational efficiency, making North America a key hub in the global freight forwarding landscape.

Asia Pacific Freight Forwarding Market Analysis and Trends

Asia Pacific is emerging as the fastest-growing regional freight forwarding market, projected to expand at a CAGR of 6.1% through 2032. The region’s growth is driven by a surge in international trade, rapid industrialization, and increasing export volumes from major economies like China, India, and Southeast Asian nations.

China continues to serve as a global manufacturing hub, while rising trade activity across countries such as Vietnam, Indonesia, and Malaysia is expanding regional logistics needs. Strategic geographic positioning along key global shipping routes supports robust demand for sea, air, and rail freight services.

Freight forwarders are strengthening their presence in Asia Pacific by building extensive networks and logistics hubs to serve both global and intra-regional trade. Localized service offerings and competitive pricing strategies cater to the region’s price-sensitive markets.

With growing middle-class consumption and the rise of regional multinationals, the Asia Pacific freight forwarding market presents strong growth opportunities for providers equipped to meet evolving logistics demands.

 U.S. Freight Forwarding Market Analysis and Trends

The U.S. freight forwarding market remains a key pillar of the global logistics landscape, supported by the country’s strong economic activity, extensive trade volumes, and advanced transportation infrastructure. The presence of global logistics leaders such as FedEx, UPS, and Expeditors International, along with a vast network of domestic and international carriers, enables efficient end-to-end freight movement.

Market growth is driven by the country’s diversified industrial base, high levels of import-export activity, and increasing adoption of digital freight technologies. Advanced supply chain management systems, integration of AI and IoT in logistics operations, and rising demand for time-sensitive shipments—particularly from e-commerce and manufacturing sectors—are reinforcing the need for agile freight forwarding solutions.

With key trade corridors linking North America to Asia, Europe, and Latin America, and with established port and airport hubs, the U.S. continues to be a global leader in multimodal freight forwarding. The increasing focus on sustainability and automation is also driving innovation and reshaping the competitive landscape of the U.S. freight forwarding market.

Pricing Analysis of the Freight Forwarding Market

1. Service Cost by Transportation Mode

• Air Freight Forwarding
  Air freight services command the highest rates among freight forwarding modes due to speed, security, and suitability for time-sensitive or high-value goods.
  • Typical pricing ranges between US$ 2.50 to 7.50 per kilogram, depending on origin-destination pairs, fuel surcharges, shipment urgency, and space availability.
  • Example: A 500 kg express shipment from China to the U.S. priced at US$ 5.50/kg would total US$ 2,750, with pricing sensitive to fuel price fluctuations and seasonal demand.

• Ocean Freight Forwarding
  Sea freight is the most cost-effective mode for bulk or containerized cargo.
  • Costs typically range from US$ 1,000 to 4,000 per 20-foot container (TEU) and US$ 1,800 to 6,500 per 40-foot container (FEU) depending on trade route, container type, and freight terms (FCL or LCL).
  • Example: An FEU from Southeast Asia to the U.S. West Coast in early 2025 averaged US$ 4,800, with additional charges for congestion and port handling.

• Road and Rail Freight
  Domestic trucking and intermodal services (road-rail combinations) are widely used for inland cargo movement.
  • Road freight averages US$ 1.50 to 3.00 per mile for full truckload (FTL) shipments in the U.S., with higher rates for expedited or specialized freight.
  • Example: A 1,000-mile FTL delivery at US$ 2.20/mile would cost approximately US$ 2,200, excluding accessorial charges like fuel surcharges or loading fees.

2. Operational and Handling Charges

• Customs Clearance and Documentation Fees
  Freight forwarders charge between US$ 100 to 300 per shipment for standard customs brokerage, depending on shipment complexity and import/export compliance requirements.
  • Additional services such as tariff classification, inspection coordination, or documentation corrections may incur US$ 50 to 150 in extra charges.

• Warehousing and Storage Costs
  • Short-term storage costs in major U.S. logistics hubs typically range between US$ 0.50 to 2.00 per pallet per day, depending on location, facility type (cold chain vs. dry), and storage duration.
  • Example: A consignment occupying 50 pallets stored for 10 days at US$ 1.20/pallet/day would result in a warehousing charge of US$ 600.

3. Value-Added Services and Markups

• Insurance and Cargo Protection
  Cargo insurance costs around 0.3% to 0.7% of the total cargo value.
  • Example: For a shipment valued at US$ 100,000, freight insurance may range from US$ 300 to 700.

• Freight Forwarder Markups
  Forwarders may add markups of 10–25% on base carrier rates to cover coordination, risk management, and value-added services.
  • In digital forwarding models, markups may be lower due to reduced administrative overhead, typically around 8–15%, as seen in platforms like Flexport and Uber Freight.

Market Report Scope

Freight Forwarding Industry News

• In May 2025, Nippon Express Co., Ltd., a group company of NIPPON EXPRESS HOLDINGS, INC., in collaboration with fellow group company cargo-partner GmbH, has launched a "Vienna Consolidation" service for exports from Japan to Central and Eastern Europe.
• In March 2024, DP World inaugurated the latest in a string of more than 100 freight forwarding offices across the world, marking a significant expansion aimed at supporting customers navigating the complexities of global trade. In response to increasing disruptions to global trade – from climate change, geopolitics, and macroeconomic challenges – DP World has embarked on a bold initiative to bolster its commitment to its customers.

Analyst View: Global Freight Forwarding Market (2025–2032)

• The freight forwarding industry is entering a transformative phase marked by strategic recalibration across global supply chains. As international trade flows grow more complex and customer expectations evolve, freight forwarders are increasingly expected to offer speed, transparency, and end-to-end reliability. The sector’s growth is no longer just a byproduct of globalization—it is being actively driven by dynamic shifts in e-commerce, just-in-time manufacturing, and demand for responsive, tech-integrated logistics.
• Air freight forwarding has firmly positioned itself as the backbone for time-critical shipments in sectors like healthcare and high-value electronics. At the same time, integrated warehousing and transport solutions are no longer optional—they are becoming a prerequisite as businesses seek unified, value-added logistics offerings that reduce lead times and enable inventory agility. Regionally, mature markets continue to dominate through infrastructure strength and trade density, but the real competitive shakeup is happening in the Asia Pacific and emerging economies. Forward-looking policy reforms, digital public infrastructure, and ambitious cross-border trade initiatives are creating fertile ground for logistics innovation and infrastructure investment. These developments are shifting the industry’s center of gravity eastward.
• Challenges, however, remain entrenched. Fuel price instability, geopolitical turbulence, and tightening regulatory expectations—particularly around sustainability and emissions compliance—continue to strain margins and complicate long-term planning. The pressure to decarbonize is forcing a shift toward greener multimodal options, requiring significant capital outlays and operational overhauls.

Market Segmentation

• Mode of Transport Insights (Revenue, US$ Bn, 2020 - 2032)
• Air Freight Forwarding
• Ocean Freight Forwarding
• Road Freight Forwarding
• Rail Freight Forwarding
•  Services Insights (Revenue, US$ Bn, 2020 - 2032)
• Transportation & Warehousing
• Packaging & Documentation
• Insurance
• Value-added Services (Customs Clearance, Transportation Tracking, and Others)
• Regional Insights (Revenue, US$ Bn, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa
• South Africa
• GCC Countries
• Israel
• Rest of Middle East & Africa
• Key Players Insights
• Agility Logistics
• Bolloré Logistics
• CEVA Logistics (a subsidiary of CMA CGM)
• C.H. Robinson Worldwide Inc.
• DB Schenker
• DHL (part of Deutsche Post AG)
• DSV
• Expeditors International of Washington, Inc.
• FedEx Corporation
• GEODIS
• Hellmann Worldwide Logistics
• Kerry Logistics Network Limited
• Kuehne+Nagel Inc.
• Maersk
• Nippon Express Co., Ltd.
• Panalpina (part of DSV)
• Sinotrans Limited
• UPS (United Parcel Service of America, Inc.)
• Yusen Logistics Co., Ltd.
• XPO Logistics, Inc.

Sources

Stakeholders:

• Freight Forwarding Service Providers
• Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) Operators
• E-commerce Retailers and Cross-border Trade Facilitators
• Shipping Line Operators, Air Cargo Carriers, and Multimodal Transport Providers
• Technology Solution Providers (AI logistics software, route optimization tools, tracking systems)

Primary Sources:

• Interviews with C-level Executives, Logistics Managers, and Technology Officers (2022–2025)
• Corporate Disclosures on Strategic Expansions, Acquisitions, and Tech Investments
• Operational Insights and Performance Metrics from Leading Freight Forwarders
• Direct Input from Industry Experts at Global Logistics Summits and Transportation Forums

Secondary Sources:

• Official Company Websites, Annual Reports, and Investor Presentations
• Industry Publications and Logistics Trade Journals (e.g., The Loadstar, Air Cargo News, Journal of Commerce)
• Policy and Regulatory Briefs (e.g., IMO, WCO, WTO, and national logistics strategies such as India’s NLP)
• Insights from Major Trade Shows and Conferences (e.g., Transport Logistic Munich, TIACA Air Cargo Forum, Global Supply Chain Summit)

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years
• Internal Market Intelligence Dashboard on Global Freight Flows and Cost Trends (2020–2025)
• Digital Tools for Mode-wise Cost Benchmarking and Capacity Monitoring
• Expert Panels and Logistics Network Surveys Covering Shippers, Forwarders, and Customs Brokers