Global Freight Forwarding Market Forecast: 1.1% Contraction Expected in 2025

After a brief rebound in 2024, the global freight forwarding industry is once again facing turbulent waters. Shifts in trade policy, mounting geopolitical tensions, and persistent supply chain disruptions are reshaping how goods move across the world. For logistics providers, shippers, and supply chain planners, 2025 will likely bring tighter margins, more complex operations, and slower growth. According to a recent Ti Insight report, the sector covering both air freight and ocean freight is forecast to contract by 1.1%, marking a critical moment for industry adaptation and resilience.

Freight Forwarding Industry Faces Slower Growth and Tighter Margins

The global freight forwarding industry is set to face headwinds in 2025, with market contraction projected at 1.1%, according to the latest report from Ti Insight. This follows a modest recovery in 2024, driven by demand rebound and supply chain restructuring.

However, that momentum is now weakening as rising trade tariffs begin to weigh heavily on international shipping volumes. Higher tariffs are increasing costs for shippers, dampening trade flows, and creating uncertainty across both air freight and sea freight sectors.

Impact of Global Supply Chain Disruptions

Persistent disruptions in critical maritime trade routes, such as the Red Sea and Panama Canal, continue to strain transport networks and increase operational complexity for freight forwarders. With fewer available cargo opportunities and mounting challenges in routing, the industry is entering a defensive phase characterized by:

• Slower overall growth

• Tighter profit margins

• Increased pressure on global trade lanes

Regional Performance: Asia Leads, Europe Lags

The report notes a stark imbalance in regional growth patterns:

• Asia remains the powerhouse of global freight forwarding, benefiting from robust manufacturing activity and strong export performance.

• Europe continues to face economic and regulatory challenges, slowing its recovery.

• North America is seeing resilience thanks to healthy consumer demand and large-scale infrastructure investments.

• Latin America and Africa are becoming more deeply integrated into global trade flows, with growing participation in e-commerce and regional supply chains.

Key Market Drivers and Challenges for 2025

1. Trade Tariffs and Volatility – Ongoing tariff increases are expected to keep freight volumes unpredictable, forcing forwarders to adjust operations frequently.

2. E-Commerce Growth – Rapid expansion of online retail, especially in emerging markets, remains a strong driver of demand for time-sensitive logistics solutions.

3. Operational Efficiency – Success will depend on digital agility, cost optimization, and the ability to adapt quickly to changing trade patterns.

Expert Analysis – Worldcraft Logistics Perspective

From an industry standpoint, the projected contraction does not signal a collapse, but rather a market correction following the volatility of recent years. Freight forwarders that invest in digital tracking tools, route optimization technologies, and strong partnerships with carriers will be better positioned to weather the downturn.

Furthermore, diversification both in terms of service offerings and regional markets—will be critical. Those relying heavily on a single trade lane or commodity type may face sharper declines, while companies with multimodal capabilities and flexible service portfolios could even find growth opportunities despite the overall slowdown.

*This article has been adapted and edited to suit the readership of Worldcraft Logistics, ensuring clarity, relevance, and compliance with copyright considerations.