Freight Brokerage Market Size, Share, Growth Analysis, By Customer Type, Services, Mode of Transport, End Use Industry - Industry Forecast 2023-2030 (2024)

Global Freight Brokerage Market Insights

Freight Brokerage Market size was valued at USD 48.1 billion in 2019 and is poised to grow from USD 51.13 billion in 2023 to USD 88.61 billion by 2031, growing at a CAGR of 6.3% in the forecast period (2024-2031).

Brokers are employed in the freight brokerage business to act as middlemen in the shipping sector. Due to their ability to connect clients with shippers and trucking firms, freight brokers play a crucial role. With the advent and expansion of digital freight broker companies in recent years, the logistics sector has undergone a shift that has further altered the sector. The freight service develops cutting-edge technical solutions that simplify the transfer of products. Automatic matching is achieved by utilizing cutting-edge AI techniques. Companies such as Transfix, Uber Freight, Loadsmart, and others, for instance, employ various machine learning algorithms to match the carrier with the load depending on the origin, destination, pricing, and other factors. Traditional methods typically cause delays in the transportation. However, this method is quick and simple to observe. The digital freight booking allows for minute-by-minute tracking of the load. These comforts are more important to its acceptability.

The expansion of the consolidated air freight service and the expansion of the e-commerce sector, among other factors, are predicted to fuel the growth of the worldwide freight brokerage market during the forecast period. Additionally, it is anticipated that in the near future, the rise of the digital freight forwarding sector and the acceptance of freight brokerage services for cost and lead time reduction would present opportunities for the freight brokerage sector.

US Freight Brokerage Market is poised to grow at a sustainable CAGR for the next forcast year.

Market snapshot - 2024-2031

Global Freight Brokerage Market, 2021-2028 ($ Bn)

Country Share for North America Region- 2021 (%)

Global Freight Brokerage Market By Services , 2021-2028($ Bn)

Global Freight Brokerage Market Size By Services, 2021-2028 (%)

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Global Freight Brokerage Market Segmental Analysis

The Global Freight Brokerage Market is segmented based on customer type, services, mode of transport, end use industry and region. Based on Customer Type, Freight Brokerage Market is categorized into Business to Business (B2B), and Business to Customer (B2C). Based on Services, Freight Brokerage Market is categorized into Intermodal, Full Truckload, and Less Than Truckload. Based on Mode of Transport, Freight Brokerage Market is categorized into Waterways, Roadways, and Others. Based on End Use Industry, Freight Brokerage Market is categorized into Retail and E-Commerce, Manufacturing, Healthcare, Automotive, and Others. Based on region, Freight Brokerage Market is categorized into North America, Europe, Asia Pacific, The Middle East and Africa, and Latin America.

Freight Brokerage Market Analysis by Services

On the basis of services, the full truckload segment is expected to lead the global freight brokerage market over the forecast period. The full truckload (FTL) segment of the transportation broker business is expanding due to the high volume of FTL freight transportation. Because they don't need to be reloaded and unloaded while being transported, FTL is economical. The main on-demand taxi service in this area is Uber. Uber provides on-demand long-haul transportation service by connecting shippers and carriers.

Global Freight Brokerage Market By Services, 2021(%), 2023 (%)

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Global Freight Brokerage Market Regional Insights

Based on the region, the North American region currently dominates the global freight brokerage market. During the projection period, North America will account for 34% of market share. The region's leading markets for freight brokerage services include the US, Japan, Germany, China, and the UK. Estimates of each region's contribution to the expansion of the freight brokerage market size are given in this research. The majority of foreign commodities arriving at the West Coast ports of Los Angeles, Long Beach, and Oakland are transported primarily by trucks. The majority of overland freight movement in the US is accomplished by trucks. After China, the United States has the second-largest e-commerce market in the world. The American e-commerce market has grown quickly throughout the years. In 2021, e-commerce sales grew by more than 32% as a result of the pandemic's altered customer demand. Between 13% and 16% of growth in e-commerce is anticipated over the following five years. With a growth in e-commerce sales, there was a greater need for quicker order fulfillment. More often occurring, smaller shipments are becoming the norm.

Global Freight Brokerage Market By Geography, 2021 - 2028, 2024-2031

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Global Freight Brokerage Market Dynamics

Freight Brokerage Market Drivers

  • Increasing adoption of freight brokerage services

Delivering goods on schedule and lowering transportation costs present challenges for logistics service providers looking to boost revenue. There are more orders that need to be delivered quickly, which gives logistics companies the chance to adopt a multi-modal transportation system to boost supply chain effectiveness. The companies that offer freight brokerage services have extensive multi-modal transportation networks with expertise in various kinds of machinery. Freight brokers offer their clients the greatest transportation options available when their shipping needs change. Because it combines the most effective set of modes of transportation, multimodal transportation has the benefit of lowering freight costs. As an illustration, APL Logistics offers its clients the ShipMax service. Customers can benefit from increased load utilization and delivery optimization, as well as pairing with relevant trucking partners, allowing them to make the most of their transportation budget. Therefore, the leading players operating in the freight brokerage market have exponential development prospects due to the cost savings and lead time reduction provided by the adoption of a multi-modal system.

Freight Brokerage Market Restraints

  • In many aspects, DTC e-commerce improves the efficiency of shipping and other services. The usage of domestic freight forwarders facilitates communication in general. Shipping process visibility is improved for shippers thanks to on-demand tracking, which enables freight forwarders to monitor shipments in real-time. Data may now be accessed at all stages of the transportation process thanks to real-time data monitoring, potentially preventing thousands of errors from occurring in the first place. However, DTC logistics services do away with the necessity for an intermediary like freight brokers, enabling businesses to deal directly with clients. DTC logistics are therefore anticipated to restrain the expansion of the world market for freight brokerage throughout the forecast period.

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Global Freight Brokerage Market Competitive Landscape

The market for freight brokerage is highly fragmented. Because there are so many local and foreign vendors, the freight brokerage business is highly fragmented. With regard to features and costs, the many regional suppliers are in fierce competition with the international sellers. The competitive environment among the competitors in the freight broker industry will get even more intense as a result of factors including the rise in product extensions, technical advancements, and M&A. Large freight broker firms are anticipated to concentrate on acquiring regional or local players and experience inorganic growth in the upcoming years.

Freight Brokerage Market Top Players Company Profiles

  • C.H. Robinson Worldwide, Inc.
  • XPO Logistics, Inc.
  • Echo Global Logistics, Inc.
  • Expeditors International of Washington, Inc.
  • J.B. Hunt Transport Services, Inc.
  • TQL
  • UPS Supply Chain Solutions
  • DHL Supply Chain
  • Nippon Express Co., Ltd.
  • DB Schenker
  • Kuehne + Nagel International AG
  • Yusen Logistics Co., Ltd.
  • Panalpina World Transport (Holding) Ltd.
  • CEVA Logistics AG
  • DSV A/S
  • Geodis
  • Agility Logistics Pvt. Ltd.
  • Hellmann Worldwide Logistics SE & Co. KG
  • Damco International A/S (a subsidiary of A.P. Moller-Maersk Group)
  • CHAMP Cargosystems SA.

Freight Brokerage Market Recent Developments

  • In May 2021, in collaboration with Daimler Vehicles North America (DTNA), XPO Logistics Inc. tested battery-electric commercial trucks from Daimler in California under actual driving circ*mstances.
  • In January 2021, in order to provide more individualized solutions for shippers and carriers using the leading technology in the sector created by and for supply chain specialists, CH Robinson has announced the opening of a new technology center in Cork.

Global Freight Brokerage Key Market Trends

  • Integration of Technology

Freight brokers have significant opportunities to revolutionize the business thanks to the tech-enabled offerings. Numerous carriers and loads are matched using various algorithms by businesses like Transfix, Convoy, Uber Freight, and Loadsmart based on origin, destination, pricing, kind of load, and timing. Traditional brokerage causes delays or problems with a shipment, but these problems are challenging to diagnose. Load matching and real-time pricing are available from both new entrants and incumbents with the integration of digital freight brokerage. In the near future, 3PLs will be able to address higher-order issues because to the growing adoption of telematics. The purpose of this technology was to find freight. As a result of the multiple devices and apps that visibility solution providers have deployed on trucks, more advanced analytics products are being created. With the use of this information, 3PLs will be able to assist carriers in making the most use of their resources and assist shippers in cost-effective shipment schedule optimization.

Global Freight Brokerage Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to the analysis, the global freight brokerage market is currently led by countries in the North America region, due to the increasing demand for freight brokerage services in this region. Along with this, the full truckload segment is projected to lead the market over the forecast period due to the high volume of FTL freight transportation. The freight brokerage market is highly fragmented. The freight brokerage industry is highly fragmented due to the large number of local and foreign vendors.

Report Metric Details
Market size value in 2023 USD 48.1 billion
Market size value in 2031 USD 88.61 billion
Growth Rate 6.3%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Customer Type
    • Business to Business (B2B), Business to Customer (B2C)
  • Services
    • Intermodal, Full Truckload, Less Than Truckload
  • Mode of Transport
    • Waterways, Roadways, Others
  • End Use Industry
    • Retail, E-Commerce, Manufacturing, Healthcare, Automotive, Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • C.H. Robinson Worldwide, Inc.
  • XPO Logistics, Inc.
  • Echo Global Logistics, Inc.
  • Expeditors International of Washington, Inc.
  • J.B. Hunt Transport Services, Inc.
  • TQL
  • UPS Supply Chain Solutions
  • DHL Supply Chain
  • Nippon Express Co., Ltd.
  • DB Schenker
  • Kuehne + Nagel International AG
  • Yusen Logistics Co., Ltd.
  • Panalpina World Transport (Holding) Ltd.
  • CEVA Logistics AG
  • DSV A/S
  • Geodis
  • Agility Logistics Pvt. Ltd.
  • Hellmann Worldwide Logistics SE & Co. KG
  • Damco International A/S (a subsidiary of A.P. Moller-Maersk Group)
  • CHAMP Cargosystems SA.
Customization scope

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  • Segments by type, application, etc
  • Company profile
  • Market dynamics & outlook
  • Region
Historical Year 2019

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Freight Brokerage Market Size, Share, Growth Analysis, By Customer Type, Services, Mode of Transport, End Use Industry - Industry Forecast 2023-2030 (2024)

FAQs

What is the outlook for the freight brokerage market? ›

Freight Brokerage Market size was valued at USD 51.7 billion in 2023 and is estimated to register a CAGR of 6% between 2024 and 2032. The rise of e-commerce has led to an increased demand for efficient and flexible freight solutions.

How big is the US freight brokerage market? ›

US Freight Brokerage Market size was valued at USD 1.164 Billion in 2020 and is projected to reach USD 13.78 Billion by 2028, growing at a CAGR of 36.2% from 2021 to 2028. An increase in convenience coupled with the increase in investment is the key reason for the rise in Business in US Freight Brokerage Market.

What is the global freight transportation market size? ›

Global Freight Trucking Market size was valued at USD 2.17 Trillion in 2022 and is poised to grow from USD 2.28 Trillion in 2023 to USD 3.42 Trillion by 2031, at a CAGR of 5.2% during the forecast period (2024-2031).

What is the freight brokerage industry? ›

Freight brokerage is a separate branch of business, the purpose of which is to organise freight orders and pass them on to freight carriers. It should not be confused with the freight forwarding business, as it does not have its own vehicles or storage facilities.

Who is the largest freight brokerage firm? ›

With a net revenue of around 2.2 billion U.S. dollars, C.H. Robinson is the largest freight brokerage firm in the world in terms of net revenue in 2022. Total Quality Logistics ranked second with a net revenue of some two billion U.S. dollars.

Who is the largest freight broker in the world? ›

Robinson Worldwide. With $15.3 billion net revenue, C.H. Robinson Worldwide is the largest freight broker across the globe.

How do you market a freight brokerage? ›

You can develop your freight broker brand identity, spread awareness, and keep your services at the forefront of shippers' minds. Social media marketing can be as simple as connecting with other people in your industry and interacting with their posts. At the most basic level, you can like, comment, and share posts.

How profitable is a freight brokerage? ›

What does gross margin mean for freight brokerage? Gross margin numbers are often displayed as a percentage of net sales and for a freight brokerage, usually range from 10% - 20%. This means that for every $1 you pay your brokerage, they usually take away less than $. 15 in gross margin.

What are the largest freight marketplaces? ›

Top Freight marketplace Companies
  • BuildDirect. Private Company. ...
  • uShip. Private Company. ...
  • Dray Alliance. Private Company. ...
  • Voyage Control. Private Company. ...
  • CargoX. Private Company. ...
  • Macingo. Private Company. Founded date unknown. ...
  • Cogoport. Private Company. Founded 2016. ...
  • DigCargo (Digital Cargo Management Inc.) Private Company. Founded 2017.

What is the size of the freight logistics market? ›

The United States Freight and Logistics Market size is estimated at 1.33 trillion USD in 2024, and is expected to reach 1.67 trillion USD by 2030, growing at a CAGR of 3.90% during the forecast period (2024-2030).

What is the largest transportation industry? ›

Largest transportation companies by market cap
#NameM. Cap
1Union Pacific Corporation 1UNP$149.46 B
2Uber 2UBER$137.21 B
3United Parcel Service 3UPS$127.68 B
4Canadian National Railway 4CNI$81.12 B
57 more rows

What is the growth forecast for freight? ›

Growth in total payload (road and rail freight) is forecast at 5.5% for 2024, versus an estimate of 1.5% in 2023.

Why is freight brokerage important? ›

It goes beyond mere transportation, embedding itself into supply chain management, cost reduction, and strategic planning. Brokers leverage their expertise and networks to solve logistical puzzles, making sure that the right cargo gets to the right place, at the right time, and in the right condition.

How many freight brokerages are there in the US? ›

There are 82,188 Freight Forwarding Brokerages & Agencies businesses in the US as of 2023, an increase of 0.2% from 2022.

What is the difference between freight and brokerage? ›

There's one key difference between freight forwarder and broker work: while both parties facilitate the connection between the shipper and the carrier, a freight broker never takes physical possession of the freight while a freight forwarder does, often storing, packing, and even shipping that freight.

Is there a high demand for freight brokers? ›

With more businesses emphasizing supply chain efficiency to ensure streamlined operations, demand for freight broker and 3PL solutions should remain strong. With more competition and better technology, brokers and 3PLs will keep offering economical rates, dependable work, and quicker shipping timelines.

What is the outlook for the freight forwarding industry? ›

The Global Freight Forwarding Market was estimated at USD 200 Billion in 2022 and is anticipated to reach around USD 320 Billion by 2032, growing at a CAGR of roughly 5.5% between 2023 and 2032.”

What is the outlook for the freight and logistics industry? ›

India Freight and Logistics Market Analysis. The India Freight and Logistics Market size is estimated at 317.3 billion USD in 2024, and is expected to reach 545.6 billion USD by 2030, growing at a CAGR of 9.46% during the forecast period (2024-2030).

Is freight brokering recession proof? ›

While freight brokering can be a stable profession, relying solely on one source of income can be risky during a recession.

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