Global Freight Brokerage Market

Freight Brokerage Market Overview

The Global freight broker market was valued at USD 60342 Million in 2021, and it is expected to grow at USD 91643 Million in 2028 with a CAGR of 5.3 % during the forecast period of 2022-2028. Integration of technology and expansion in licensed brokers is anticipated to push the growth of the freight brokerage market. Freight trades make an enormous amount of data that a digital freight brokerage will process daily. By integrating technology, it can automate tasks and enhance efficiency. Freight brokers help carriers in maximizing the efficiency of their goods. In other words, by putting back-hauls and making more efficient paths, each vehicle can perform more work for less money. This benefit is anticipated to force the freight brokerage market during the forecast period.

What is Freight Brokerage?

A freight broker is someone or a company who acts as a middle man between a Shipper and a Motor Transportation. The Shipper contracts them. Its mission is to facilitate the movement of goods from origin to destination through an intricate network. Their money is earned from the Shipper’s billing rate and Carrier Invoice Rate negotiations. For Example, The Federal Motor Carrier Safety Administration is the main governing body in the US. They deliver a license to any Freight Broker. There are 17000 Freight employees in the US.

Growth Drivers

The advancement in penetration of smartphones and tablets

The digital platform improvements have certified this process by making it much more efficient & more effective by allowing shippers to find carriers on-demand and stopping abrupt brokerage fees. Moreover, growing wireless connectivity and network technologies, such as 3g and 4g, particularly in developing countries, are expected to impact the market positively. These advanced technologies in developed countries and the culture of rapid adoption of the latest technology supplement the market growth in the forecasting period.

Opportunities

Integration of technology and development in licensed brokers

The digitally-enabled services have delivered prominent possibilities for freight brokers to deliver transformational value to the market. They utilize different algorithms to match several carriers and loads based on origin, destination, price, type of load, and timing. Classic brokerage results in pauses or shipment issues, but they are hard to analyze. With digital freight booking, the brokerage holds a detailed record of every load, minute by minute in some circumstances. The growing need for ship transportation worldwide is anticipated to increase the freight brokerage market in the forecasting period.

Restraints

Hard to Balance scale, people and technology

One of the biggest challenges to managing freight on demand is managing scale. For an owner-operator, the owner can decide which loads to contract. The owner and driver will consult on the most suitable options for a trucking company with a few trucks. “The person who presses the button to post the truck may not be possible the guy who can say they will carry the load,” Abbott said. “It makes the most purpose when the person with the phone in their hand is the person who makes the conclusions. For the brokers, scale is a critical factor. A big broker like C.H. Robinson has relationships with more than 74,000 carriers. As a network grows, its links reproduce exponentially, making it challenging for smaller firms to compete.

Pre Covid-19 Impact on Global Freight Brokerage Market

Before the covid-19 period, Due to the advancement in smartphones, enhanced wireless connectivity, and benefits digital platforms such as accuracy, better efficiency, less time consumption, decreased costs, and access, transparent business is expected to drive the freight brokerage market. The significant advancement in container shipping and air freight volume due to constant restocking of business inventories has resulted in the widespread growth of logistics worldwide, which, in turn, is anticipated to instantly influence the overall growth of the global freight brokerage market.

Covid-19 Impact on Global Freight Brokerage Market

During the covid-19 outburst, there has been a massive crash in the shipping transport between countries. Many countries banned their borders. Goods from other countries have been prevented from importing. That is why exports have decreased in many business sectors. So, it posed a danger to the Freight business.

Post Covid-19 Impact on Global Freight Brokerage Market

After the covid-19 period, big data analytics is arguably the biggest opportunity to generate freight management transportation after the pandemic. Speed, efficiency, and dependability are the elements that specify the success of the freight business. With technology advancements and rising digitization, organizations today develop massive amounts of data but struggle to maximize advantages. Big data analytics can get the actual value of data to enhance freight operational efficiencies and client fulfillment at decreased costs. The rapid increase in big data applications has led to newer technologies to optimize cost efficiency. Thus, these aspects are anticipated to increase the development of new analytics platforms and data storage centers in the freight brokerage market.

By Type Segmental Analysis

The market is segmented into Truckload, LTL, and others based on type segmental analysis. The truckload segment monopolized the market. Road shipping is an adjustable means for transporting goods; thus, the segment accounts for the largest allocation in the global freight brokerage market. Freight brokerage is reshaping the road freight industry by taking on massive inefficiencies in new truck capabilities. As per DHL, 40% of trucks on the road in the US and Europe are moving empty, and loaded trucks are normally only over 50% capacity.

By Application Segmental Analysis

Based on application segment analysis, the market is segmented into Food & Beverages, Manufacturing, Retail, Auto & Industrial, chemical and others. The retail and e-commerce components have dominated the market and carried 29.6% in 2021. E-commerce has changed the retail sector in the past two decades, with fast-changing technique cycles and directions. Today’s retail and e-commerce initiative is a global marketplace, which encourages transactions between shippers, carriers, and freight brokerage providers. Retail payers such as Amazon, eBay, and Alibaba plays an important role in altering consumer perception and eventually describing today’s retail industry model.

By regional Segmental Analysis

Based on the regional segmental analysis, the market is segmented into North America, Europe, Asia-Pacific and The Middle East & Africa. North America is expected to maintain the largest market share during the forecast period. It can be attributed to freight brokerages and services, which many users in this region adopt. North America is the most mature region for developing the digital freight brokerages system market due to the advanced technology adoption and leading solutions providers. The North American region includes the US and Canada, which also noticed the effective adoption of freight brokerage systems. The US is predicted to have a major dominance in the market due to its endurable and well-established economy, which authorizes it to make huge investments in R&D activities, thereby donating to the evolution of new technologies and use possibilities.

Competitors Analysis

The companies include C.H. Robinson Worldwide Inc., DSV Panalpina AS, Echo Global Logistics Inc., Expeditors International of Washington Inc., Hub Group Inc., J.B Hunt Transport Services Inc., Kuehne  + Nagel International AG, Nippon yusen Kabushiki Kaisha, United Parcel Services Inc., Xpo Logistics Inc. and other prominent players in the global freight brokerage market. Key Stakeholders

• Market research and consulting firms
• Freight Brokerage Industries
• Local Governments
• Regulatory bodies
• Freight Brokerage Market
• Suppliers
• Service Providers

Recent Developments

• In October 2018, EbixCash attained Routier, a B2B marketplace for trucking logistics in India. Routier concentrates on moving the efficiency of market stakeholders by merging AI, data analytics, and end-to-end streamlined functionality over the cloud. This acquisition was driven by Routier’s aspiration for a strategic investor that could offer technological expertise, financial stability, and brand distinction to fast-track its penetration in trucking logistics.
• In June 2019, Amazon established freight.amazon.com, a digital freight brokerage forum for full truckload services in the dry van component across five eastern US states, Connecticut, Maryland, New Jersey, New York, and Pennsylvania. The brokerage aims to deliver full-truckload services on 53-foot trailers.
• In July 2019, Rivigo Services increased USD 65 million in its most delinquent round of funding, conducted by two of its current investors, Warburg Pincus and SAIF Partners. The company will operate the funding to support its technology and network range.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 60342 Million
The revenue forecast in 2028	USD 91643 Million
Growth Rate	CAGR of 5.3 % % from 2022 to 2028.
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The Companies includes C.H. Robinson Worldwide Inc., DSV Panalpina AS, Echo Global Logistics Inc., Expeditors International of Washington Inc., Hub Group Inc., J.B Hunt Transport Services Inc., Kuehne + Nagel International AG, Nippon yusen Kabushiki Kaisha, United Parcel Services Inc. and Xpo Logistics Inc. are the key players.

Market Modelling

By Type

• Truckload
• LTL
• Other

By Application

• Food & Beverages
• Manufacturing
• Retail
• Auto & Industrial
• Chemical
• Other

By Region

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East & Africa

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