The United States Customs Brokerage Market size is estimated at USD 5.17 billion in 2024, and is expected to reach USD 6.59 billion by 2029, growing at a CAGR of 4.95% during the forecast period (2024-2029).
Freight transportation arrangements are more influenced by the volume of imports into the United States, which increases demand for industry services regarding customs regulations for finished consumer goods and semi-finished inputs to domestic production. The growth in imports is a prime driving factor for customs brokerage market. The imports of the country remained steady in 2019 when compared to 2018, while there is growth of more than 9% in 2018. The slowdown in 2019 can be attributed to US-China trade war.
The manufacturing sector depends on timely and reliable deliveries of raw materials, or semi-finished products as inputs to further processing. It also requires finished products to be transported to warehouses or distribution centers. The major determinant of manufacturing demand is consumer spending. The trend toward just-in-time (JIT) inventories has also created increased demand for transportation services, as manufacturers seek smaller and more frequent deliveries. JIT allows companies to improve profitability by purchasing materials only as needed, thereby reducing inventory costs. For such timely delivery needs, efficient customs clearance is of high importance driving the need for customs brokers.
Maritime freight transport is the major mode of transport of international transport of goods. The number of customs entries by mode is highest in case of Sea transport and so, the revenue of customs brokerage market. The demand for air freight transport is increasing with growing demand for perishables, chemicals & valuables, and the rising demand for just-in-time production of goods. The US Customs Brokerage Market for Air freight transport is expected to witness faster growth over the forecast period when compared to other modes of transport.
The road freight movement of goods is the dominant mode of transportation in the United States and is an important factor for the economic growth. The cross-border land transport, including road, rail, and pipeline transport between US and North American partners Canada and Mexico is increasing steadily and is expected to grow in future driven by USMCA. The customs brokerage services for cross-border land transport is highly fragmented with many number of small brokers operating at each border portof entry.
The market for Customs Brokerage in United States is fairly fragmented. With many number of customs brokers operating in the market, the competition is high. The top players in the market include United Parcel Service, and FedEx Corporation. Some other significant players include Livingston International, Expeditors, A.N. Deringer, and C.H. Robinson. Based on number of entries, it was estimated that FedEx and UPS together account for almost 35% of the total market. Although the top five to ten players take up more than 50% of the market, the companies that account for the remaining market share are more in number with very less market shares.
Apart from these players, the major global freight forwarding companies such as DB Schenker, and Kuehne + Nagel also have good service offering in the US customs brokerage market. A lot of acquisitions have occurred in the past decade such as Carmichael by APL Logistics, and Livingston acquiring FPA Customs brokers and many others, etc.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook