The global freight forwarding services market was valued at almost USD 168 billion in 2016 and is expected to surpass USD 212 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on freight forwarding services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the public relations services market during the forecast period. Some of the top vendors listed in this industry analysis include DHL, Kuehne + Nagel, DB Schenker, Nippon Express, and Sinotrans.
In terms of geographical analysis, APAC dominated the global freight forwarding services market due to high levels of intra-regional trade activities. The growth can be attributed to the growth of the consumer base in emerging countries such as India and China and much more.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The shift from globalization to regionalization of transport will favor the growth of overland freight services. The growth of the emerging countries and increase in nearshoring activities have shifted production and manufacturing units closer to the customer base to reduce transportation costs. The shift has subsequently increased the regional flow of goods when compared with the decreasing global cargo volume.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Trade promoting initiatives
Free trade agreements such as the TTIP facilitate free trade in regions such as Pacific Rim countries, as they remove tariffs placed on exports. Such agreements contribute to the growth of the freight forwarding services industry by reducing barriers to trade and promote the movement of goods to various member countries of the agreements. This increases cross-border trade.
Reduced time and operational costs
Suppliers take advantage of having contacts with multiple carriers and other service providers in the freight forwarding industry to facilitate intermodal transportation and reduce customs delays. Such operational efficiencies of suppliers allow buyers to benefit from reduced paperwork, billing, and audits, thus providing them opportunities to focus more on core business activities.
Technological innovations
Suppliers use advanced technologies such as analytics, route optimization tools, and real-time tracking for functions like identifying cost-effective mode and route of transportation, ensuring cargo safety, and obtaining real-time information of containers. The application of such advanced technologies promotes the growth of the freight forwarding industry by improving supply chain processes of the buyers.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Freight Forwarding Services – Procurement Market Intelligence 2016.’
