The freight forwarding and carriers industry is undergoing significant changes as it adapts to the shifting demands and challenges of global trade. In this blog post, we'll explore some of the key trends and developments that are expected to shape the industry in 2023 and beyond.

‍

1. Digitalization and automation. The freight forwarding and carriers industry is increasingly embracing digitalization and automation as a way to improve efficiency, transparency, and customer satisfaction. According to a report by Mordor Intelligence (2021), the global freight forwarding market is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2021 to 2028, driven by the adoption of digital platforms and solutions that enable real-time tracking, data analytics, and smart contracts. Some of the leading players in this space include Maersk, Flexport, Freightos, and Shipa Freight.
   
   ‍
2. Sustainability and decarbonization. The freight forwarding and carriers industry is also facing growing pressure to reduce its environmental impact and contribute to the global efforts to combat climate change. According to the International Maritime Organization (IMO), the shipping sector accounts for about 2.5% of global greenhouse gas (GHG) emissions, and is projected to increase by 50-250% by 2050 if no action is taken. To address this challenge, the IMO has set a target to reduce the carbon intensity of international shipping by at least 40% by 2030 and by 70% by 2050, compared to 2008 levels. Some of the strategies that are being implemented or explored by the industry include using alternative fuels (such as liquefied natural gas, biofuels, hydrogen, or ammonia), improving energy efficiency (such as using wind-assisted propulsion, air lubrication, or hull optimization), and offsetting emissions (such as through carbon credits or voluntary schemes).
   
   ‍
3. Innovation and differentiation. The freight forwarding and carriers industry is also facing increasing competition from new entrants and incumbents who are offering innovative and differentiated services and solutions to meet the evolving needs and expectations of customers. According to a report by Maersk (2021), some of the key trends that are driving customer demand in freight forwarding in 2023 include speed-to-market, end-to-end visibility, flexibility and agility, customization and personalization, and social responsibility. To respond to these trends, the industry is investing in innovation and differentiation by developing new products and services (such as express delivery, cold chain logistics, e-commerce fulfillment, or value-added services), enhancing customer experience (such as through digital platforms, chatbots, or self-service options), and creating value propositions (such as through bundling, pricing, or branding).
   ‍
   ‍

The industry is ultimately picking up on long-due changes such as digitization and decarbonization, where both carriers and freight forwarders are sensing at one hand a need and at the other hand commercial benefit resulting in better positioning into a changing market.

‍

‍

References:

Maersk (2021). 4 key trends to expect in freight forwarding in 2023. Retrieved from https://www.maersk.com/insights/growth/key-trends-in-freight-forwarding-in-2023

Mordor Intelligence (2021). Freight Forwarding Market - Growth, Trends,COVID-19 Impact, And Forecasts (2021 - 2028). Retrieved from https://www.mordorintelligence.com/industry-reports/freight-forwarding-market

‍