Ti says freight forwarding growth “greatly misleading”
Overcapacity, rising fuel and operational costs amongst the factors for decline in air freight forwarding.
July 18, 2013
Transport Intelligence, the leading logistics research and consultancy specialists, have published a new report which reveals the full extent of the increasing divergence between the air and sea freight forwarding markets. Although the overall market grew by 3.1 per cent to $125.85 billion in 2012, Ti’s new report, Global Freight Forwarding 2013, suggests this figure is misleading as the positive growth was entirely attributed to the sea freight sector.
The report found that while the sea freight forwarding market grew by an impressive 11.5 per cent to $63.23bn in 2012, the air freight forwarding market declined by 4.2 per cent to $62.62bn as a result of overcapacity, rising fuel prices and other operational costs. This has led many shippers to opt for alternative methods for transporting their goods.
Asia Pacific accounts for the largest freight forwarding market with a 32% share. Although its economy is still heavily reliant on exports, domestic demand is growing and therefore intra-Asian services are becoming more sought after. Therefore, Ti expects Asia to hold a 37% share of the market by 2016. It is anticipated that this will be of particular detriment to the European market, currently the second largest, which will decline from 31% to 26% as a result of its ongoing economic issues.