Global Land Transportation and Freight Brokerage Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Land Transportation and Freight Brokerage Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Land transportation and freight brokerage refers to an individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier. Though a freight broker plays an important role in the movement of cargo, the broker doesn't function as a shipper or a carrier. Instead, a freight broker works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at an acceptable price.

Market Overview:

The latest research study on the global Land Transportation and Freight Brokerage market finds that the global Land Transportation and Freight Brokerage market reached a value of USD 274714.0 million in 2022. It’s expected that the market will achieve USD 456890.0 million by 2028, exhibiting a CAGR of 8.85% during the forecast period.

The COVID-19 pandemic is hitting the trucking market, and as companies adjust to the shakeup in their supply chains, some carriers are no longer able to adapt. All companies, including land transportation and freight brokerage, need to rethink economic forecasts and the recent rise in COVID-19 cases. Businesses and trucking supplies have been disrupted due to COVID-19 safety procedures for businesses. More groceries, household goods, and health care supplies need to be shipped, while other sectors are experiencing a sharp decline in transportation needs.

According to the U.S. Bureau of Labor Statistics (BLS), the trucking industry, like many other industries, faced a large number of jobless claims in April and May. However, the market has turned the corner, and the Logistics Managers Index (LMI) continued its rapid recovery from its all-time low total score of 51.3 in April 2020, registering 70.5 in September, the first time it has been in the 70s since October 2018.September's strong reading was largely due to increased demand for logistics services prior to the fourth quarter, which tightened capacity in both transportation and warehousing. Tighter capacity led to higher subsequent prices and utilization rates, with transportation prices in particular rising sharply, tying a two-year high of 87.9. E-commerce is expected to reach a record high during the holiday season, and retailers are replenishing inventories, especially those from international suppliers that have been experiencing difficulty making regular deliveries early in the blockade. Digital retailing allows concerned shoppers to avoid offline spending, but it also requires more logistical resources. As supply picks up and demand grows, the land transportation and freight brokerage business will gradually get back on track.

To some extent, the transportation industry, including land transportation and freight brokerage, has been insulated from the more serious effects of this crisis. However, like any other type of economic activity, the logistics industry is dealing with supply chain collapse and a dangerous path ahead. The best way forward must be designed in the light of the consequences experienced during these difficult times.

Advantages of land transportation and freight brokerage

There are many industry verticals that require freight brokers. Every industry and every company within an industry is different and companies will have individual needs when it comes to different freight and handling. And freight brokers can enhance the transportation process by reducing the cost and lost time of shipping. In general, specialization leads to lower costs. When it comes to transportation, freight brokers and third-party logistics companies are experts and rely on knowledge and experience that can help client companies optimize this part of the supply chain. Manufacturers and distributors rely on brokers to research the speed, effectiveness, scope and rates of transportation companies. Brokers are helpful to transporters because they increase the amount or product they can deliver, thus ensuring full trucks and consistent work. In addition, brokers can greatly ease the burden on wholesale and shipping companies, allowing them to focus on other aspects of their business.

Legal requirements

As a major market, freight brokers in the United States must meet a number of legal requirements before they can operate legally, the most important of which is to be licensed through the Federal Motor Carrier Safety Administration. As part of this licensing process, new freight brokers must also secure warranties to protect customers from unscrupulous business practices throughout the life of the brokerage. Failure to obtain the proper licensing or secure a minimum bond can wreak havoc on a broker's ability to work in any state and create a bad reputation among potential customers. Once these processes have been completed, freight brokers must also ensure that they are working in compliance with federal and state guidelines. One of the requirements for becoming a freight broker is securing a freight brokerage bond or trust fund, both of which provide protection against bad business practices and future claims against the business. No freight broker can legally operate without the proper bond or trust fund, so it is vital to understand these requirements before starting a brokerage business. Those who recognize the need to follow these guidelines and have strong relationships in the industry will be in a position to enjoy the growth of the industry for years to come.

Region Overview:

North America dominated the Land Transportation and Freight Brokerage market in 2022, with a market share of 41.2%.

Company Overview:

C.H. Robinson is one of the major players operating in the Land Transportation and Freight Brokerage market, holding a share of 5.66% in 2023.

C.H. Robinson

C.H. Robinson offers freight transportation, transportation management, brokerage and warehousing. It offers truckload, less than truckload, air freight, intermodal, and ocean transportation.

XPO Logistics

XPO Logistics provides logistics services. The Company offers expedited airfreight forwarding, warehousing management, drayage, freight brokerage, intermodal, transportation, and reverse logistics.

Segmentation Overview:

As for product types, the Semi-Trailer Trucks segment held the largest market share in 2022.

Application Overview:

By application, the Food & Beverage segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Land Transportation and Freight Brokerage market covered in Chapter 3:

BlueGrace Logistics
J.B. Hunt (Integrated Capacity Solutions)
Coyote Logistics (UPS)
Total Quality Logistics
Worldwide Express
Schneider National
GlobalTranz
C.H. Robinson
Ymm56
Echo Global Logistics
MODE Transportation
XPO Logistics
Landstar System
56Pingtai
Uber Freight
Hub Group (Truck Brokerage)
NYK Group

In Chapter 4 and Chapter 14.2, on the basis of types, the Land Transportation and Freight Brokerage market from 2018 to 2029 is primarily split into:

Refrigerated Trucks
Tank Trucks
Flatbeds
Box Trucks
Semi-Trailer Trucks
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Land Transportation and Freight Brokerage market from 2018 to 2029 covers:

Food & Beverage
Manufacturing
Retail
Auto / Industrial
Chemicals
Paper / Packaging
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)