GLOBAL FREIGHT FORWARDING REPORT 2023
Logistics analyst Ti Insight published their Global Freight Forwarding 2023 Report, noting that the global freight forwarding market continues to normalise, with demand for air and sea freight forwarding services remaining soft.
As a result, the global forwarding market contracted by 3.7% in 2022 and is expected to contract even further in 2023, by 3.9%. The poor performance of the market can be attributed to the weakness in air freight forwarding, which shrank by 7.3% in 2022. However, sea freight forwarding also had a less than desirable performance, contracting by 1.5%. The global economic downturn is the main underlying reason for the contraction in the forwarding market.
Viki Keckarovska, Research Manager at Ti Insight, says: “The freight forwarding market continues to be negatively affected by the ripple effects of normalisation in consumer behaviour, as well as the global economic and manufacturing slowdown. She added: “Supply continues to outstrip demand, contributing to falling freight rates and consequently reduced yields among forwarders. Driven by these challenging market conditions, forwarders are re-assessing their strategies by leveraging technology and offering more value-added services in order to pull back eroding margins.”
Source: Hellenic Shipping News Worldwide