Small and medium-sized freight agents are showing impressive growth in the air freight market.
According to recent data from WorldACD Market Data, larger forwarders have lost some market share to their smaller rivals. While large forwarders now hold 14.2% of total chargeable weight, a decrease of 1.1% from September 2022, smaller forwarders have seen their share increase by 0.9% since last year, accounting for 15.6% of the market.
It's worth noting that this shift in the market could be a result of the challenges faced by the air and sea divisions, leading to downsizing and job cuts at many multinationals. However, it also presents an exciting opportunity for small and medium-sized freight agents to grow and thrive.
Even independent LSPs are experiencing similar challenges, but they are adapting and finding ways to stay competitive. Overall, the market is evolving, and there is a need for all freight agents to keep up with these changes.
“Shipping is a personal business, and shippers like a personal approach that you might not get from a large forwarder”
Brandon Fried, Airforwarders Association Executive Director