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The global freight forwarding market is expected to contract by 1.1% in 2025 amid a more challenging trade environment
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While 2024 saw a rebound driven by recovering demand and restructured supply chains, that momentum is slowing
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A key factor behind this shift is the growing impact of protectionist measures, particularly rising tariffs, which are dampening international trade flows and increasing costs for shippers
The global freight forwarding market is expected to contract by 1.1% for both sea and air in 2025 amid a more challenging trade environment, according to the latest findings from Ti Insight‘s Global Freight Forwarding 2025 report.
While 2024 saw a rebound driven by recovering demand and restructured supply chains, that momentum is slowing.
READ: Global freight forwarding market seen to expand 1.7% in 2024
“A key factor behind this shift is the growing impact of protectionist measures, particularly rising tariffs, which are dampening international trade flows and increasing costs for shippers,” according to the report.
Also, the ongoing disruptions in key maritime routes – including the Red Sea and Panama Canal – continue to strain global transport and logistics networks.
As freight forwarders grapple with a shrinking pool of cargo and rising operational complexities, the market is entering “a more defensive phase marked by slower growth, tighter margins, and greater pressure” on global trade lanes.
Regional growth is expected to be uneven. Asia remains a powerhouse while challenges in Europe remain. North America is supported by strong consumer demand and infrastructure developments, even as Latin America and Africa become increasingly integrated into global trade flows.
The impact of trade tariffs is seen to create continued volatility in freight demand and is likely to result in ongoing planning challenges for freight forwarders as they navigate fluctuating volumes and shifting trade flows.
At the same time, e-Commerce is proving to be a powerful growth driver, especially in emerging markets.
Operational excellence, digital agility and strategic adaptability will be the key to success, according to the Ti report.
“The freight forwarding market overall is entering a new phase of growth and transformation,” it concluded.
