Freight Brokerage Services Market Size, Share, Growth, and Industry Analysis, By Type(Truckload Freight, LTL Freight, and Others), By Application (Food and Beverage, Manufacturing, Auto and Industrial, Chemical, and Others), and Regional Insights and Forecast To 2031

Updated On: 22 April 2024

freight brokerage services market REPORT OVERVIEW

• 

• Request a Free Sample to learn more about this report

The global freight brokerage services market size was 57370 million in 2021 and is expected to reach USD 81680 million by 2028, exhibiting a CAGR of 5.1% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with freight brokerage services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s demand returning to pre-pandemic levels.

Freight brokerage services play a vital role in the transportation and logistics industry by acting as intermediaries that connect shippers with carriers. These services provide efficient matchmaking, negotiation, documentation handling, and communication between parties, facilitating the movement of cargo. Freight brokers help shippers find cost-effective and reliable transportation options while ensuring carriers have access to available cargo, making the shipping process smoother, more cost-efficient, and flexible.

They also offer expertise in market dynamics and regulatory compliance, making them essential partners in the complex world of logistics. Additionally, freight brokers are regulated in many countries to ensure integrity and financial responsibility, providing shippers and carriers with confidence in the professionalism and reliability of these service providers.

COVID-19 IMPACT : Cargo Prioritization to Boost Demand Significantly

COVID-19 had a life changing impact globally. The freight brokerage services market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for freight brokerage services experienced an increased demand.

The pandemic caused widespread disruptions in global supply chains, leading to fluctuations in shipping volumes and shifts in demand for certain types of goods. Freight brokers had to adapt quickly to these changes and find new transportation solutions for their clients. With the sudden changes in shipping demand, capacity constraints and rate fluctuations became common. There were instances of capacity shortages and spikes in freight rates, which posed challenges for both shippers and carriers.

Brokers had to navigate a rapidly changing regulatory landscape, including health and safety regulations related to the pandemic. Compliance with health protocols, border restrictions, and quarantine requirements added complexity to the shipping process. Certain industries, such as medical and food supply chains, saw increased demand during the pandemic. Freight brokers had to prioritize these essential goods, which sometimes meant adjusting plans for other cargo. The pandemic accelerated the adoption of digital tools and technology in the logistics and brokerage industry. Brokers increasingly turned to online platforms and data analytics to streamline operations and meet changing customer demands. The market is anticipated to boost the freight brokerage services market growth following the pandemic.

LATEST TRENDS

"Data Analytics and Predictive Tools to Broaden Market Prospects"

Freight brokers were increasingly leveraging data analytics and predictive analytics to optimize routing, track shipments in real-time, and anticipate market trends. These tools were used to make more informed decisions and provide better services to customers. The adoption of digital technologies and online platforms was already on the rise, making it easier for shippers, carriers, and brokers to connect and collaborate. The industry saw increased use of mobile apps, cloud-based solutions, and data analytics to streamline operations and improve efficiency.

Real-time visibility solutions that allow shippers and carriers to track their shipments were in high demand. Transparency in the supply chain became a key differentiator for freight brokers looking to provide added value to their clients. Automation and artificial intelligence were playing a growing role in various aspects of freight brokerage, from load matching to automated pricing and even chatbots for customer service. These technologies were helping reduce administrative tasks and improve response times.

freight brokerage services market SEGMENTATION

• 

• Request a Free Sample to learn more about this report

• By Type

Based on type, the market is divided into truckload freight, ltl freight, and others.

Truckload Freight holds a major segment by type of the global market.

• By Application

Based on application, the market is bifurcated into food and beverage, manufacturing, auto and industrial, chemical, and others.

Food and Beverage as application holds a major segment by application of the global market.

DRIVING FACTORS

"E-commerce Growth to Boost Market Demand"

The surge in e-commerce and online shopping has generated a higher demand for efficient and flexible transportation services. Freight brokers help businesses manage their e-commerce supply chains by finding cost-effective and timely shipping solutions. The expansion of global trade and commerce has led to an increase in the movement of goods across borders. Freight brokers play a crucial role in connecting shippers with international carriers, managing customs documentation, and ensuring smooth cross-border transportation. Modern supply chains have become increasingly complex, with multiple intermediaries and diverse transportation needs. Freight brokers simplify these complexities by providing comprehensive logistics solutions and optimizing routes.

"Technology Advancements to Boost Market Flux"

The adoption of digital technologies and data analytics has enhanced the efficiency and transparency of freight brokerage services. Real-time tracking, data-driven decision-making, and online platforms have become integral to the industry. Compliance with transportation regulations and safety standards is a critical factor in the industry. Freight brokers help ensure that shipments meet all regulatory requirements and that documentation is complete and accurate. Businesses often experience fluctuations in shipping requirements. Freight brokers provide the flexibility to adapt to these changing demands by connecting shippers with carriers suited to their specific needs. These factors are anticipated to drive the freight brokerage services market share.

RESTRAINING FACTOR

"Market Competition to Hamper Market Necessity"

The freight brokerage industry is highly competitive, with many players offering similar services. Competition can put pressure on profit margins and make it challenging for new entrants to establish themselves. The transportation and logistics industry is heavily regulated, and freight brokers must navigate a complex web of federal, state, and local regulations. Compliance with these regulations can be challenging and may require significant resources. Freight rates are subject to fluctuations, and market conditions can lead to unpredictable changes in pricing. Brokers must navigate these rate fluctuations and adapt to market dynamics.

freight brokerage services market REGIONAL INSIGHTS

• 

• Request a Free Sample to learn more about this report

"North America to Dominate the Market Owing to Significant Sizes of Transportation"

North America is the major shareholder for the freight brokerage services market. North America has historically been a major shareholder in the freight brokerage services industry. This is due to the significant size of the transportation and logistics sector. These countries have large and highly developed economies, extensive transportation networks, and a high volume of goods moving domestically and internationally. The presence of numerous manufacturers, distributors, and e-commerce companies in North America has driven the demand for freight brokerage services. The industry benefits from a robust regulatory framework, established infrastructure, and a culture of logistics and supply chain management. Furthermore, the presence of many technology startups in the region has led to innovations in digital freight brokerage.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• C.H. Robinson [U.S.]
• Total Quality Logistics (TQL) [U.S.]
• XPO Logistics [U.S.]
• Coyote Logistics [U.S.]
• Echo Global Logistics [U.S.]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.