Westford, USA, Dec. 20, 2022 (GLOBE NEWSWIRE) -- Freight brokerage helps busy businesses and organizations move goods by arranging shipments with freight providers. The market is worth $56.27 billion as of 2021 and is expected to grow at a CAGR of 5.2%. SkyQuest’s analysis of the freight brokerage market provides insights into the competitive landscape and future growth prospects for the market. It is a highly competitive market, with a wide range of providers offering a range of services. This diversity has helped the industry remain relatively stable in recent years as businesses have been more selective about which freight providers they use.
The companies that hire freight brokers typically need large quantities of goods transported quickly and cheaply across long distances, while the freight brokers often specialize in specific types of cargo (like chemicals or electronics). Freight brokerage market play an important role on the supply chain by helping to optimize shipments and connect shippers with carriers who have the capacity to handle their cargo. They assess cargo needs and provide timely recommendations to their clients, who in turn can reap the benefits of reduced costs and improved logistics. SkyQuest's analysis of freight brokerage highlights the key trends shaping this sector and provides valuable insights for businesses looking to capitalize on its growth potential.
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There are three main types of freight brokerage: domestic, international, and cross-border. Our analysis finds that the domestic freight brokerage market is the largest and most stable, accounting for over 54% of the global revenue. This is due in part to the large number of domestic shipping routes as well as strong demand from traditional shippers such as wholesalers and manufacturers. Nevertheless, international freight brokerage has seen faster growth in recent years, due to increasing demand from e-commerce companies and other fast-growing sectors such as transportation and logistics. This growth is expected to continue over the next seven years.
Global Freight Volume Reached 658.9 Billion Tons in Global Freight Brokerage Market
Overall, global freight volumes increased by 2.6% in 2021, reaching 658.9 billion tons., However, this growth rate was slower than in previous years. The main reasons for this slowdown were decreased demand from Asia and Europe, together accounting for two-thirds of total global trade. In contrast, North America saw strong growth overall, with freight volumes increasing by 7.7% in 2021. This was mainly due to strong growth in container traffic (+14%), despite overall decrease in cargo transport by highways (-5%) and rail (-2%) in the global freight brokerage market.
This demonstrates the importance of shipping by containers in the corridors connecting major markets across North America. Elsewhere in the world, freight volumes increased by 2% compared to 2019 levels – however this still lags behind the growth rates seen in recent years. This might be explained by weak demand from China and Europe, as well as a drop in transatlantic trade (-5%). Looking ahead, SkyQuest expects that global freight volumes will grow by 3% annually over the next five years.
Contract Hauling is Gaining Momentum in the Global Freight Brokerage Market
The largest segment of the freight brokerage market is based on contract hauling - Companies in the market are expecting continued growth in the coming years. This indicates that businesses and companies are expecting continued growth in the coming years. Contract hauling typically refers to assignments made between shippers and carriers to transport goods, and it is an important part of the freight brokerage market because it provides a steady stream of work. This type of work is often customized to meet the needs of specific clients, which makes it an attractive option for businesses.
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Firms in the freight brokerage industry are also located all around the world. This indicates that there is a demand for this type of services throughout the globe, which is good news for those active in the market. We have observed that many firms in the industry are expanding their operations and hiring new employees, which indicates that they are confident about the future prospects for their businesses.
Companies in Freight Brokerage Market are Aggressively Focusing on Investing in Technology Domain
Looking at the freight brokerage market, it is clear that many firms are making heavy investments in technology. This is according to a report from Capgemini, which surveyed more than 50 freight brokerage firms about their technology spending. More than half of these companies said that they are making significant investments in technology, with an average expenditure of $1.4 million per year by top 20 players in the market. One of the main reasons for this investment spree is the growth in technology-based freight transportation solutions. These include things like RFID tracking and digital cargo tracking systems. These technologies allow carriers to improve accuracy and efficiency when moving goods around the country or world.
In addition, firms in the global freight brokerage market are also investing in other technologies that are essential for moving freight around the country. Such technologies include mobile apps and cloud-based systems. This is because these platforms allow businesses to manage their operations more easily from anywhere in the world. Overall, this report shows that freight brokerage firms are focusing on cutting-edge technologies to help them move goods faster and more accurately. This is sure to benefit both businesses and carriers alike in the future.
This is a significant increase from just five years ago, when only 31% of firms in the global freight brokerage market surveyed reported investing in technology. The importance of technology for freight brokerage firms can be seen in the types of investments these businesses are making. Nearly two-thirds of these firms (64%) have made investments in software and related services, while 56% have made investments in data processing and storage facilities. In addition, 44% have made investments in telecommunications and networking infrastructure, and 38% have made investments in information systems. The increased focus on technology is likely due to the growing demand for skilled workers within this industry.
The study on the freight brokerage market found that 71% of freight brokerage executives believe that the need for skilled workers will increase over the next five years. In addition, 51% of executive respondents said that they believed that their company's ability to digitize their processes would be key to remaining competitive.
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Key Players in the Global Freight Brokerage Market
- Allen Lund Companies (US)
- C.H. Robinson Worldwide, Inc. (US)
- Coyote Logistics LLC (US)
- Echo Global Logistics (US)
- England Logistics, Inc. (UK)
- Hub Group, Inc. (US)
- J.B. Hunt Transport, Inc. (US)
- Kenan Advantage Group, Inc. (US)
- Landstar System, Inc. (US)
- Mode Transportation (US)
- Redwood Logistics (US)
- Schneider National, Inc. (US)
- Total Quality Logistics (US)
- Transplace (US)
- Worldwide Express (US)
- Yusen Logistics Co. (Japan)
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