While 2024 saw a rebound driven by recovering demand and restructured supply chains, that momentum is slowing, according to the latest findings from Ti Insight. The growing impact of rising tariffs, which are dampening international trade flows and increasing costs for shippers, will lead to a contraction in the global freight forwarding market. The market is expected to contract 1.1% in 2025. That includes both air and sea freight.
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, the report notes.
Key Insights from the report include:
Regional growth is uneven – Asia remains a powerhouse, while challenges in Europe remain. North America is supported by strong consumer demand and infrastructure developments. Latin America and Africa are becoming increasingly integrated into global trade flows.
The impact of trade tariffs is expected 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.
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.
