bongdaso com vn “disappointing results” in Transport Intelligence’s (Ti) Global Freight Forwarding Market Report are a consequence of economic downturn, it says – but bongdaso com vn airfreight forwarding sector has taken a bigger hit than its ocean counterpart.
In nominal terms, bongdaso com vn global freight forwarding market contracted by a staggering 45.6% in 2023.
bongdaso com vn drop is attributed to bongdaso com vn collapse in freight rates from their “unusually high” 2021 and 2022 mid-Covid levels.
“Obviously, it would seem like a drop of 45% is a doomsday scenario for freight, but given that most companies recognised that bongdaso com vn price growth was temporary, it has been managed carefully by bongdaso com vn forwarders,” Michael Clover, head of commercial development at Ti, told bongdaso com vn Loadstar.
“It’s good to contrast it with bongdaso com vn real terms growth – basically a measure of underlying volume – that shows bongdaso com vn underlying health of bongdaso com vn market is not as bad as bongdaso com vn nominal figures suggest,” he added.
So in real terms, according to Ti data, bongdaso com vn global freight forwarding market contracted by 1.3% last year, bringing bongdaso com vn market value to €192.7bn (9bn).
“Challenges arising from a global economic downturn, shifts in consumer behaviour and an oversupply surpassing demand have led bongdaso com vn global freight forwarding market to contract,” bongdaso com vn intelligence platform explained.
“Geopolitical risks, such as conflicts in Ukraine and Israel, bongdaso com vn rise of inflation and bongdaso com vn increase in bongdaso com vn price of fuel, coupled with weakened consumer demand, had an impact on bongdaso com vn real growth forecast.”
bongdaso com vn lion’s share of bongdaso com vn poor market performance was due to weakness in bongdaso com vn air freight forwarding sector, which shrank 2.1% in 2023, while ocean freight forwarding had “a less-than-desirable performance”, but saw a smaller contraction, of 0.6%.
Growth in bongdaso com vn freight forwarding market is largely determined by bongdaso com vn strength of international trade, says bongdaso com vn report, and according to UN Trade and Development (UNCTAD), bongdaso com vn value of international trade “declined moderately”, to around trn last year.
This was driven by lower global demand, “particularly for goods”, said UNCTAD.
Looking ahead, Ti forecasts that a more fragmented global economy, prompted by geopolitical events, will increase financial instability.
It said: “As a result, bongdaso com vn global freight forwarding market is expected to grow at a 3.3% compound annual growth rate (CAGR) over bongdaso com vn next five years to 2028, and reach a market value of €226.7bn (5.9bn).”
Across bongdaso com vn period, air freight forwarding is forecasted to expand at a 3.6% CAGR, and ocean forwarding at 3%.
Despite this gloomy outlook, freight forwarders in Ti’s freight volume survey remained optimistic: 28.6% of respondents said they saw air volumes increase 5%-10% in bongdaso com vn previous year, while looking ahead, they expect continued volume increases; 31% expecting air freight volumes to increase by more than 10%.
bongdaso com vn most successful strategies for forwarders to sustain profit margins over bongdaso com vn next five years, according to Ti, will be targeting higher-margin clients, offering new or more value-added services and investing in new technology.
Source: https://theloadstar.com/doomsday-scenario-for-forwarders-just-a-post-covid-rate-drop-blip/
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