According to the Global Freight Forwarding 2024 Report from Ti Insight, the demand for air and sea freight forwarding has ebbed due to global economic downturn, shifts in consumer behaviour, and an oversupply surpassing demand. The demand for freight forwarding services declined globally by 13% in 2023. A break up by sector shows a 2.1 per cent decline in air freight forwarding and 0.6 per cent decline in sea freight forwarding demand in 2023. The global economic downturn is cited as the main underlying reason for declining demand.
In nominal terms (holding exchange rates constant), the global freight forwarding market contracted by a significant 45.6 per cent in 2023. This substantial drop is attributed to reduced freight rates for air and sea compared to the previous year. However, the global forwarding market is expected to expand slightly in 2024, with a projected growth of 1.7 per cent in real terms, as per the report. The Asia Pacific freight forwarding market experienced the third-largest market contraction compared to other regions. Despite this, it remains the largest region, accounting for 35 per cent of the global freight forwarding market. Ti data indicates that the global freight forwarding market will see a real compound annual growth rate (CAGR) of 3.3 per cent over the five years to 2028.
