Freight forwarding industry seen poised for growth
The global freight forwarding sector has seen significant expansion in recent years and is forecasted to experience even greater growth in 2025. According to the International Monetary Fund, worldwide trade activity is expected to rise by 3.2% this year, supported by increasing consumer demand within developing economies, the rapid growth of e-commerce and reduced geopolitical conflicts, as per an analysis by International Forwarding Association.
It elaborates:
Consumer demand in emerging markets
In Asia, the middle class demographic is expanding rapidly and is expected to account for 66% of the global total by 2030. This growth is driving a significant rise in consumer spending across the region. This, in turn, is prompting European freight forwarders to extend their services to these emerging markets. For instance, some providers are already expanding their offerings to include not only transportation but also warehousing and distribution in key Asian markets such as China, India and Southeast Asia.
Growth of e-commerce
The e-commerce sector is expected to exceed 6.4 trillion by 2026, fuelled by higher internet penetration rates, increasing worldwide spending per person and rising disposable income. This exponential growth in e-commerce presents opportunities for European forwarders, with many already leveraging these changes. For example, providers are increasingly investing in automated sorting centers located in major European cities like Paris, Berlin and Rome. These facilities are equipped with cutting-edge technologies such as robotics, AI-driven sorting algorithms and advanced scanning systems to expedite the sorting and despatching of small parcels.
Additionally, European forwarders are forming strategic partnerships with e-commerce platforms. These collaborations typically involve providers taking over key logistics functions, including inventory management, order processing and return handling, which were traditionally handled by the retailers themselves.
When freight forwarders manage inventory, for example, they gain direct access to real-time sales and stock data. This information offers insights into customer purchasing patterns, demand changes and product turnover rates. Order processing is also streamlined under these arrangements. When a customer places an order, the information is automatically transmitted from the e-commerce platform to the freight forwarder’s system. From there, the provider manages every subsequent step, including picking, packing and shipping the order directly to the customer. Additionally, forwarders manage return operations which includes the collection, processing and restocking of returned items.
Reduced geopolitical conflicts
In 2025, notable geopolitical developments have contributed to a more stable global trade environment. The ceasefire agreement between Israel and Hamas, established in January, has ended a 15-month conflict in Gaza. Additionally, the diplomatic engagement between China and India, marked by their first formal meeting in five years, has eased tensions along their disputed border.
For freight forwarders, a more stable geopolitical climate, with the prospect of long-term peace and economic stability, can justify the higher upfront costs of advanced technology investments. One example is the implementation of automated cross-border clearance platforms which streamline Customs processes between nations with newly solidified trade agreements. Another example includes analytics tools that leverage economic and political data to assess the viability of entering markets in regions that have recently stabilised.
Source: Exim News Service: Amsterdam, Feb. 4