About this market
The rising popularity of blockchain technology in the shipping industry is one of the key factors gaining traction in the market. Blockchain systems are increasingly being used to make the processes more efficient and cut costs by eliminating the need for a central authority for maintaining records. Technavio's analysts predict that the global seafreight forwarding market will register a CAGR of close to 3% by 2023.
Growing global cross-border e-commerce market is driving the LCL volume
There has been a significant increase in the global cross-border e-commerce trade. Such continuous increase in the foreign trade is likely to influence the seafreight forwarding market positively. Factors such as the rising purchasing power parity and internet penetration is likely to contribute majorly to the growth of the market.
High freight cost and operational difficulties
The continuous consolidation in the shipping industry owing to low demand, non-utilization of vessels, and other factors is one of the key factors hindering the growth of the market. Major companies are forming alliances to result into an oligopolistic market.
For the detailed list of factors that will drive and challenge the growth of the seafreight forwarding market during the 2018-2022, view our report.
The seafreight forwarding market is highly fragmented with several players incorporating blockchain technology to meet the evolving demands of the end-users. Some of the key players in the market including the DHL Group, CJ Logistics, CEVA Logistics are increasingly innovating with their solutions to gain a competitive advantage over the other players resulting in intense competition.