Procurement Market Intelligence Report
Freight Forwarding Services
Sourcing Guide & Market Intelligence
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Freight Forwarding Services Global Overview
Definition
Summary
Freight forwarders handle the logistics of cargo movement by arranging transportation and tracking, negotiating freight charges, preparing documents, overseeing customs clearance, insuring goods, arranging warehousing, and consolidating freight services. Vendors subcontract freight carriers, such as trucking companies, rail carriers, cargo airlines, and waterborne carriers, to transport buyers’ goods. Key buyers include manufacturers and retailers, while key suppliers are freight forwarding services companies.
This Report Includes:
- Arranging Transportation & Freight Tracking
- Preparing Documents
- Arranging Warehouse Consolidating Freight Services
Not in this Report:
- Only Cargo Transportation Services
- Only Customs Brokerage Services
Global Freight Forwarding Services Procurement Trends
Discover the top international trends affecting procurement in the global Freight Forwarding Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Freight Forwarding Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 27,225 |
| #2 United States | 15,000 |
| #3 Oceania & Southeast Asia | 13,330 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Freight Forwarding Services
United States
2026 Market Pricing$0.10 to $XX.XX
per pound via airfreightCanada
Europe
Average Price
Prices in the Freight Forwarding Services market range from $0.10 to $XX.XX, depending on Shipment Origin & Destination, Modes of Transportation, Special Handling Requirements and Shipment Weight & Volume. For example, lower prices are associated with Origin and destination close to transfer hubs and Goods located near a port, airport or railway station, whereas higher prices are associated with Origin and destination far from transfer hubs and Goods located inland.
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Freight Forwarding Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Freight Forwarding Services market, prices in the US have declined -2.3% from 2022 to 2025. and +3.5% in Europe.
United States (2022-2025)
Canada (2018-2021)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Freight Forwarding Services
Total cost of ownership is Low in the Freight Forwarding Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Other Fees
Transportation
Billed During
Storage
Handling
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.3 in the United States. Buyer power is most positively impacted by Recent Price Volatility. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Ocean & Coastal Transportation Suppliers
- Charter Flight Services
- Rail Transportation Suppliers
- Local Freight Truck Transportation Suppliers
2nd
Tier Suppliers
- Ship Builders
- Gasoline & Petroleum Wholesalers
- Train, Subway & Transit Car Manufacturers
- Truck & Bus Manufacturers
Biggest Freight Forwarding Services Suppliers in the US by Revenue
The largest Freight Forwarding Services vendors by revenue in the US are Kuehne + Nagel International AG, Kerry Group PLC and Universal Cargo Management Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| United Parcel Service, Inc. | International | ATLANTA, GA | >10,000 | 5-10 | ||||
| FedEx Corporation | International | MEMPHIS, TN | >10,000 | 5-10 | ||||
| Deutsche Post Ag | Global | Bonn, DE | >10,001 | 5-10 | ||||
| C.H. Robinson Worldwide, Inc. | Global | EDEN PRAIRIE, MN | >10,000 | 5-10 | ||||
| Kuehne + Nagel International AG | US | 5-10 | ||||||
| Expeditors International of Washington Inc. | Global | BELLEVUE, WA | >10,000 | < 5 | ||||
| Xpo Logistics, Inc. | Global | GREENWICH | >10,000 | < 5 | ||||
| Flexport Inc. | Global | San Francisco, CA | 1,001-10,000 | < 5 | ||||
| Roadrunner Transportation Systems Inc. | International | CUDAHY, WI | <25 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Freight Forwarding Services market is 5.1% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The market’s low level of concentration helps buyers as they will enjoy increased leverage during negotiations with smaller suppliers since they compete more intensely on the basis of price.
Profit margins tend to be highest for large and small firms, with midsize firms generating below-average margins, suggesting a moderate overall vendor financial risk.
Moderate supply chain risk negatively impacts buyers by increasing the likelihood of demand shocks or price fluctuations, which can make it difficult for buyers to count on steady service from their freight forwarding supplier.
The United States is a net importer of intermodal containers, demonstrating strong competition from foreign manufacturers within the market. This increased reliance on overseas supply could add to supply chain complexities and potential risks tied to varied trade policies and global economic conditions.
Supplier Information
C.H. Robinson Worldwide, Inc.
C.H. Robinson Worldwide, Inc. is a freight transport services and logistics company serving various industries worldwide. It leverages contracted transportation companies, including motor carriers, railroads, and ocean and air carriers. It also provides a wide range of value-added logistics services, such... Subscribe to learn more
Deutsche Post Ag
Deutsche Post Ag is a public company operating globally in the professional, scientific & technical services sector. The company's offerings include letter & parcel delivery services, same-day last-mile delivery services, international air cargo transportation services, material handling services, general... Subscribe to learn more
FedEx Corporation
FedEx Corporation is a public company operating internationally in the manufacturing, manufacturing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business card printing, banners, letter & parcel Subscribe to learn more
Kuehne + Nagel International AG
Kuehne + Nagel International AG is a public company operating . The company's offerings include freight forwarding services. Founded in 2013, the company is currently headquartered in United States of America. Subscribe to learn more
United Parcel Service, Inc.
United Parcel Service, Inc. is a public company operating internationally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include business card printing, mailing software, 3d printing & rapid prototyping services, letter & parcel delivery... Subscribe to learn more
Expeditors International of Washington Inc.
Expeditors International of Washington Inc. is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include material handling services, general warehousing & storage, freight forwarding services, customs brokerage services and third-party... Subscribe to learn more
Flexport Inc.
Flexport Inc. is a private company operating globally. The company's offerings include freight forwarding services. Founded in 2013, the company is currently headquartered in San Francisco, California, United States of America with an estimated 5500 employees. Subscribe to learn more
Kerry Group PLC
Kerry Group PLC is a public company operating in the manufacturing sector. The company's offerings include food flavors & extracts and freight forwarding services. Founded in 2013, the company is currently headquartered in United States of America. Subscribe to learn more
Roadrunner Transportation Systems Inc.
Roadrunner Transportation Systems Inc. is a public company operating internationally. The company's offerings include drayage services and freight forwarding services. Founded in 1984, the company is currently headquartered in CUDAHY, Wisconsin, United States of America. Subscribe to learn more
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Procurement Management KPIs for the Freight Forwarding Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Concentration and Customer Lifetime Value. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Pricing and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Concentration |
|
Revenue per customer (RPC) Total revenue |
The customer concentration represents the amount of revenue associated with a single customer. It is recommended that the customer concentration remains at or below 10.0%. A diversified client portfolio decreases vendor risk should a client discontinue their services. |
| Customer Lifetime Value |
|
Average order total Average retention time Average number of purchases per year |
The customer lifetime value represents the value of a single customer relationship with a business. A high customer retention rate indicates customers' desire to continue working with the vendor into the future, an important consideration for buyers looking for long-term contracts. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Timeliness
What modes of transportation do you anticipate my shipment will require?
What is your on-time delivery rate? How do you ensure you are able to arrange on-time deliveries?
Supply Chain Risk
Do you have any warehouses where I can drop off cargo? What is the current capacity of your warehouses?
Where can I pick up the cargo once it reaches its destination?
Experience and Expertise
Do you have previous experience moving goods to and from these origins and destinations?
Have you had contact with the local embassy or consulate of the destination country?
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Freight Forwarding Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and the industry in which they operate.
Buyers should indicate why they require freight forwarding services, including the transportation modes and services currently being used to manage their supply chains.
Statement Of Need
Buyers should state the type or types of cargo for which they require transportation, including weight, dimensions and packaging types.
Buyers should indicate their capacity requirements, including the volume and frequency of shipments they require arrangement for.
Project Budget
Buyers should request a detailed breakdown of the rates applied to the buyer for different types of transportation services.
Buyers should indicate their expectations for payment schedules and methods.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
