SpendEdge has been monitoring the global freight forwarding services market and the market is poised to experience spend growth of nearly USD 60 billion between 2018-2023 at a CAGR of over 5% during the forecast period. Request Free Sample Pages.
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Read the 112-page research report with TOC and LOE on “The Global Freight Forwarding Services Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
The exponential rise in the cross-border trade volume experienced by the e-commerce sector will be directly responsible for speeding up spend growth in the freight forwarding services market. Last year, the gross merchandise value for cross-border e-commerce trade touched a figure of about USD 550 billion and is expected to grow in the coming years. Growing complexities such as customs and import clearance and adherence to the regulatory norms and paperwork associated with cross-border trade are compelling enterprises to seek services from the freight forwarders who aid them in such time-consuming tasks. These factors will contribute towards spend momentum in the global freight forwarding services market.
The presence and prominence of flourishing industries like manufacturing heavy machinery, electrical equipment, chemicals, aircraft, and petrochemicals derived from crude oil have catapulted the US to the position of the second-largest exporter of goods across the globe. This will create substantial requirements for services such as customs clearance, documentation, and cross-border logistics. According to the forecasts, such requirements will draw investments into the freight forwarding services market in the US. The emergence of China, Taiwan, and India as global manufacturing hubs will drive the demand growth in this market in APAC.
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Insights into the market pricing trends
- Suppliers will have to tackle a major hike in their OPEX owing to their increasing expenditure on logistics and transportation. This is a result of the steady rise in crude oil prices.
- The rise in wages and increasing investments in technologies such as logistics management software, AI chatbots, and data analytics-based route optimization tools is expected to increase OPEX for suppliers. This will have an inflationary impact on the buyer’s procurement expenditure in the freight forwarding services market.
What are the strategies to adopt to optimize procurement spend in this market?
- Buyers are advised to engage with suppliers who can offer VMI solutions for strategic planning of locations of inbound hubs of components to facilitate JIT delivery. Packaging solutions offered by some of the leading suppliers enlisted in this report will aid buyers to minimize in-transit shipment damage.
- Buyers may often require shipping cargo that does not cover the full cargo capacity. However, they are obligated to pay for the entire capacity and this increases their procurement spend. Such buyers are advised to engage with suppliers who offer LCL consolidation services with minimal delays. This will enable buyers to use and pay for freight forwarding services as per their requirements.
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Some of the key topics covered in this report are:
- Freight forwarding services market spend segmentation by region
- Total cost of ownership analysis in the freight forwarding services market
- Regional spend opportunity for freight forwarding services suppliers
- Freight forwarding services suppliers cost structure
- Freight forwarding services pricing models analysis
- Freight forwarding services procurement best practices
- Category management objectives
- Cost saving opportunities in the freight forwarding services market
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