Cargo Transportation Market: Global Industry Analysis and Forecast (2024-2030)

Cargo Transportation Market Overview

Cargo refers to goods or freight being shipped or carried by ocean, air, or land from one place to another. Cargo is a general term often used regarding commercial inventory and can include any type of product or good. As an example, the freight carried in the back of a trailer from a warehouse to a commercial business would be considered cargo.

 

The report extensively examines key aspects of the Cargo Transportation Market, including growth drivers, challenges, constraints, and opportunities. Utilizing a structured approach that integrates both qualitative and quantitative methodologies, it meticulously analyzes data, identifies patterns, and extracts market insights. The report also provides an in-depth review of the strategies employed by leading players in the Cargo Transportation market, along with a detailed analysis of market segments and regional dynamics. Essential statistics on supply and demand dynamics, pricing trends, cost structures, revenue generation, and gross margins are included, making it a vital resource for investors seeking to make well-informed decisions.

 

• A 1% increase in global air cargo demand coupled with a 5% rise in yields.
• In the Asia-Pacific region, demand grew by 2% and yields by 6%;
• International trade agreements have a significant impact on the European freight forwarding industry, shaping the landscape in which businesses operate. Navigating these agreements is important for freight forwarders as they influence trade flows, customs procedures, tariffs, and market access.

 

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Cargo Transportation Market Dynamics

Surge in E-Commerce and Infrastructure Advancements Propel Cargo Transportation Market

Surged in the e-commerce business as it is growing efficiently, it is expected that online businesses is estimated to continue grow by making air freight services a reliable and quick transportation option that has driven the market growth. The rise in the investment, rapidly evolving regulatory policies, mega infrastructure projects and several other developments in recent times have driven the cargo transportation market, simultaneously, also overcoming infrastructure-related constraints and logistics-centric inefficiency has propelled the market growth.

 

While traversing the road to development, multiple projects and services have been either at the planning or implementation stage. These advancements have been influencing every aspect of transportation and logistics services, with all parties actively involved. As customers increasingly look for fresh and perishable items, the need for temperature-controlled transportation is predicted to rise, particularly in sectors like food and pharmaceuticals.

 

• The sector currently employs over 16.74 million employees and is slated to employ more than 28.4 million employees by 2025.

Services	Employment Growth (2018-2023) In Million
Courier Services	0.06
Packaging	0.04
Passenger Railways	0.24
Passenger Transport Roadways	3.01
Rail Freight	0.04
Road Freight	1.90
Warehousing	0.12

 

Impact on the Global Cargo Transportation Market

The increase in the geopolitical issues that have impacted the cargo transportation market such as the imposition of tariffs and trade barriers between the United States and China disrupted global supply chains, increased costs, and led to a shift in trade routes and manufacturing bases has hindered the market growth. The surge in inflation and interest rates has been influencing consumer behavior resulting in slower cargo transportation market growth. The cargo transportation industry is dealing with immense change due to maturing business models, slowing growth rates, new entrants, continuous technology developments, lack of warehousing space, declining freight rates, labor shortages, capacity issues, etc has created barriers in the growth of the market.

 

Additionally, the Fluctuation in fuel prices has affected the air freight industry the most as it directly impacts the profit, finance, and costs of the airline which as a result decreases the demand for the cargo transportation market.  Ongoing wars have negatively impacted market growth for example, Territorial disputes in the South China Sea involving China and several Southeast Asian countries have created uncertainties and potential threats to one of the world’s busiest maritime routes.

 

Transformative Technologies Driving Growth in Cargo Transportation and Logistics

The rise in technology has been a trend in cargo transportation and increasing demand for the advancement in logistics has propelled the market growth. Manufacturers, retailers, and others are changing the supply chain network to manage disruptions and geopolitical unrest, compelling T&L companies to redraw the transportation map. As a result, companies are investing in AI-powered network optimization, forecasting, scenario planning (Digital Twin), etc. Greater flexibility in the network drives better business outcomes around efficiency and profitability. Rapidly changing digital technologies are reshaping the industry and acting as a catalyst to transform the Transportation and logistics landscape. Different categories of technology help to enhance the customer experience or operational excellence initiatives.

 

Some mature and accelerating technologies are foundational and required for operations. With a long-term view, companies should plan for aspirational technologies that help to achieve strategic goals to prepare for technology-led disruptions. For example, Sensor technology has increased collaboration, visibility, and predictability across the cargo transportation network. It’s critical to build a connected ecosystem of assets and inventory using IoT-based solutions.  Additionally, With Cloud-based solutions, T&L companies are able to access data and applications from anywhere, reducing their dependency on physical infrastructure. Seamless integration of data and applications with a cost-effective solution enhances visibility. Enabling robotic process automation (RPA) with process mining helps companies gain insights into business and automation processes to improve has boosted the market growth.

 

Cargo Transportation Market Segment Analysis

Based on Transportation Type, the Seaways segment dominated the market and is expected to maintain its dominance through the forecast period with an increasing CAGR. Seaways offers a more cost-effective solution for transporting cargo making it a preferred choice for businesses that are looking to optimize their shipping expenses has boosted the market growth. Ocean transport produces much lower emissions and has a better carbon footprint. Ships generally have a significantly lower fuel consumption rate per unit of cargo transported, resulting in reduced greenhouse gas emissions.

 

The slower speed of sea freight compared to air freight also contributes to its environmental benefits. Businesses with larger shipments or substantial cargo volumes can benefit from choosing sea freight as it provides ample space for efficient transportation. Sea freight provides flexibility in terms of schedules and regular services. Shipping lines offer frequent departures to major ports worldwide, ensuring a reliable and consistent transportation service.

 

• Ocean freight (or sea freight) is the most common form of transport for importers and exporters, accounting for 90% of goods transported globally.

Cargo Transportation Market Regional Analysis

Asia Pacific dominated the market and is expected to dominate the market through the forecast period with an increasing CAGR. The Asia Pacific region has experienced a surge in demand for consumer and intermediate goods that has driven the market growth a sizable portion of the world's electronics, textiles, cars, and other goods are produced in the Asia Pacific region, which is known as a global manufacturing powerhouse. Because China is regarded as the "world's factory," there is a greater need for cargo transportation.

 

Many nations in the Asia-Pacific region are strongly focused on exports, sending substantial amounts of goods to Europe, North America, and other continents. Because more than half of the world's population lives in the region, there is a strong demand for consumer goods, which makes effective cargo transport necessary. Significant economic growth has been experienced by nations like China, India, South Korea, and Japan, which has raised both production and consumption.

 

The free flow of goods is made possible by numerous trade agreements both within the region and with other countries, which enhances cargo transportation. As an illustration, the EU-Japan EPA, one of the biggest trade agreements in history, forges a thorough partnership between the EU and Japan. Tariffs on a wide range of goods, including food and drink, automobile, and industrial goods, are removed. This also holds true for services like transportation, finance, environment, and storage and distribution.

 

• The Asia-Pacific region now has 81 signed and in-force PTAs featuring e-commerce chapters or provisions. A new type of stand-alone ‘digital trade agreement’ (DTA) or ‘digital economy agreement’ has also emerged following the Japan-United States of America DTA that was enforced in 2020.

Cargo Transportation Market Competitive Landscape

• In April 2024, YCH Group, Singapore's largest home-grown end-to-end supply chain management and Logistics Company, announced a significant expansion of its operations into North Asia with the opening of a new site in Fukuoka, Japan. The strategic development enhances YCH Group’s network, which boasts state-of-the-art facilities across the region, including China and South Korea.
• In July 2023, DHL Group signed an agreement to acquire 100% of Turkish parcel delivery company MNG Kargo Yurtiçi ve Yurtd??? Ta??mac?l?k A.?. (MNG Kargo) and its subsidiaries. MNG Kargo is one of the leading parcel delivery companies in Turkey, where the parcel and e-commerce market is growing rapidly. In addition to securing a leading position in this strongly developing domestic parcel market, this acquisition is estimated to create additional synergies for DHL Group, and its customers are expected to benefit from unique logistics offerings within Turkey as well as across borders through the collaboration of the various DHL divisions already present in Turkey.
• In 2023, DP World’s latest development increases the size of its global logistics team to more than 45,000 employees and contributes to the company’s total global workforce of nearly 110,000 people. These employees are distributed across a diversified portfolio of logistics services spanning: ports and terminals, marine services, and logistics.

Cargo Transportation  Market
Market Size in 2023	USD 23.84 Bn.
Market Size in 2030	USD 47.06 Bn.
CAGR (2024-2030)	10.20 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	By Transportation Mode Railways Roadways Seaways Airways
	By End User Retail & E-commerce Automotive Aerospace & Defense Pharmaceuticals Others
Regional Scope	North America- United States, Canada, and Mexico Europe – United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Cargo Transportation Market Key Players

1. Alps Logistics
2. DHL Group
3. DP World
4. DSV A/S (De Sammensluttede Vognmænd af Air and Sea)
5. FedEx
6. JWD InfoLogistics Public Company Limited
7. Kuehne + Nagel
8. NYK (Nippon Yusen Kaisha) Line
9. Tiong Nam Logistics Holdings BhD
10. United Parcel Service of America, Inc. (UPS)
11. YCH Group
12. Cosco Shipping Development Company
13. Maersk
14. Mediterranean Shipping Company (MSC)
15. CMA CGM Group
16. Evergreen Marine
17. Hapag-Lloyd
18. COSCO Shipping Lines
19. Yang Ming Marine Transport Corporation
20. ONE (Ocean Network Express)
21. FedEx
22. Kuehne + Nagel
23. XPO Logistics
24. Nippon Express
25. C.H. Robinson
26. XXX Ltd.