The global freight forwarding market has evolved significantly in the last decade, largely owing to newer business models and the adoption of new–age technologies across the value chain.
PGA Labs, a technology-enabled business research and intelligence services firm, recently launched a report that identifies developments in the Indian freight forwarding segment and covers the various business models existing in this space. The report has predicted a positive growth of 3.3% for the Indian Freight Forwarding Market and says that it is poised to reach USD 8 billion by FY26.
India’s freight forwarding market is all set to witness considerable improvement owing to improved transportation infrastructure and government policy support.
“There are four broad business models in freight forwarding which differ in their value proposition namely, traditional freight forwarder, digital marketplace, SaaS provider, digital service provider,” the report noted.
Here are a few macroeconomic trends in the freight forwarding arena as identified in the report –
- Global economic growth decelerated against a backdrop of lingering trade tensions between North America and China and high policy uncertainty.
- Global merchandise trade contracted as manufacturing activity slowed over the year
- Developed and developing economies alike were affected, reflecting the continued trade tensions between China and the United States
“In this report, we have projected the growth trajectories for the modes of forwarding up to FY26, showcasing the modes which will see significant growth, as well as the emerging trends in the market. We have also portrayed the competitive landscape across various business models and benchmarked key digital freight forwarders on several parameters.”~ Abhishek Maiti, Director, PGA Labs
Countries have seen the rise of numerous tech-enabled players in this space, dealing with forwarding, customs clearance, insurance, and trade financing and this report explains these developments in greater detail.