Air Freight Forwarding Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Air Freight Forwarding Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Air Freight Forwarding Market is expected to grow at a CAGR of around 4% during the forecasted period. Although land and ship cargo transportation remain as favorable options, goods transport by air is considered as the quickest and the unhindered mode of transportation. In 2018, cargo volumes grew by 4.1% to 63.7 million tons. In terms of freight tons-kilometers (FTK), Airfreight returned to growth in March 2019 after three months of year-on-year declines. However, the cargo sector benefited from lower costs in 2019. Due to Covid-19, the air freight transport had witnessed significant effect as the movements of aircrafts were restricted. However, with the improvement in economy, the market is expected to pick-up growth going forward.

Key Market TrendsRising Free Trade Agreements benefits Air Freight Market

Following somewhat slow growth in the early 2010’s, the global volume of air freight has increased rapidly in recent years with freight volumes reaching 61.3 million metric tons in 2019. One of the reasons for rising volumes of air freight is the rising number of free trade agreements worldwide.

The international trade agreements have great value as they help eliminate artificial barriers to trade such as tariffs, quotas and protective subsidies. Emerging array of multilateral preferential trading arrangements such as the North American Free Trade Agreement (NAFTA), the Latin American Free Trade Association, Association of Southeast Asian Nations Free Trade Area (AFTA) and many more have greatly affected the ease of doing business in today’s world.

The latest agreement is the Trans-Pacific Partnership (TPP). Once fully ratified, the Trans-Pacific Partnership is set to become the world’s largest trade agreement. The TPP already covers 40% of global GDP, and trade between member nations is already significant. The TPP aims to cut tariffs, regulatory barriers to trade and removal of customs duties. By removing tariffs and other barriers to trade, the agreement hopes to further develop economic ties and boost economic growth.

APAC Largest Contributor to Air Freight

In 2018, cargo traffic at airports in the Asia-Pacific region accounted for the largest share of cargo traffic worldwide, with around 48.5 million tons handled. APAC was the largest airfreight forwarding market in 2019, and the region will offer several growth opportunities to market vendors during the coming years. Increasing demand for cross-border e-commerce will significantly influence airfreight forwarding market growth in this region. At present, almost 68% of the market’s growth originates from APAC. China and Japan are the key markets for airfreight forwarding in APAC. Manufacturing in China and Japan has increased due to increased demand for their exports throughout 2017. This was possible due to a surge in economic activity in Europe and continued robust performance from the U.S. The Market growth in this region is expected to be faster than the growth of the market in other regions.

Competitive Landscape

The Air Freight Forwarding Market is highly competitive and is relatively concentrated with presence of large international players. Most of the service providers are offering bundled solutions, such as packaging, labeling, documentation, and charter services, among others, along with freight transportation. Some of the existing major players in the market include – DHL Supply Chain & Global Forwarding, Kuehne + Nagel, DB Schenker Logistics, DSV Panalpina, UPS Supply Chain Solutions, Expeditors International, Nippon Express, Bolloré Logistics, Hellmann Worldwide Logistics and Kintetsu World Express.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
DHL Supply Chain & Global Forwarding
Kuehne + Nagel
DB Schenker Logistics
DSV Panalpina
UPS Supply Chain Solutions
Expeditors International
Nippon Express
Bolloré Logistics
Hellmann Worldwide Logistics
Kintetsu World Express*

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