Belgium Logistics Market Overview and Size
The report titled “Belgium Freight Forwarding Market Outlook to 2025 by Mode of Freight (Road, Sea, Air), by Cargo Volume (Sea Freight, Air Freight, Road Freight), by International Flow Corridors (Europe, Asia, NAFTA, Middle East, Africa and Others) and by Domestic and International Freight” provides a comprehensive analysis of the Freight Forwarding market in Belgium. The report covers the overall size and future outlook of Belgium Freight Forwarding in terms of value, segmentation on the basis of service mix, by geography, and in terms of volume. The report also covers the competitive landscape and company profiles of major freight forwarding, trucking, and trucking aggregator companies. The report concludes with market projections for future and analyst recommendations highlighting the major opportunities and challenges.
Belgium Logistics Market Overview and Size
Belgium’s freight forwarding industry is highly dependent on international trade hence susceptible to changes in foreign demand. Belgium shares land borders with Netherlands, Germany, France and Luxembourg and acts as a significant Northern and Western European logistics corridor and a major transshipment hub to the whole of Europe.
Belgium Freight Forwarding Market Segmentation
By Mode of Freight
The highest share by revenue in Belgium was captured by road transport. The road paves the way to access the important markets within the country (ten outer and inner ring roads link various regions) and to consumers from nations bordering the country. The share of sea freight fluctuated over the years, owing to fluctuating oil prices. The shipping industry in Belgium is negatively impacted by the over-concentration of players, thereby leading to surplus capacity and lower overall revenues. Airfreight witnessed the highest growth in revenue amongst all the modes, owing to it having the highest freight cost.
By Cargo Volume
The Port of Antwerp catered to about 72% of the total maritime volume of Belgium in 2018. The declining freight share of Zeebrugge Port has been distributed between rising shares of Antwerp and Ghent Port. Pharmaceuticals are one of the majorly transported products of Belgium; therefore, Brussels Zaventem Airport captures a major share in volume, since Brussels Airport is the preferred European Pharma gateway. Brussels Airport's cargo community specializes in the handling of time and temperature-sensitive goods. In 2016, the volume of cargo transported by road significantly fell and then rose again in 2017. This is because, in 2016, the number of road cargo-related crimes was higher than in other years, especially frauds and thefts. Owing to the mishaps in 2016, carriers started using warning systems that can identify fictitious receivers or rogue entities targeting high value or theft attractive items.
By International Flow Corridors
Europe and Asia is the major trade partner of Belgium. Major freight destinations within Europe include the Netherlands, Germany, France, Ireland, and the United Kingdom whereas major partner countries in Asia include China, Japan, India, and Turkey. Belgium had a trade surplus of about EUR 16.1 billion in 2018. The district of Flanders accounted for the largest share for generating exports to the UK. About 4,000 containers depart from Zeebrugge daily to the UK and scores of customs officials are hired at ports for the same. A no-deal Brexit would, therefore, lead to massive losses in the logistics industry of the country.
By Type of Freight
Major domestic freight is transported via road and inland waterways. Majority international cargo is bulk and heavy cargo such as petrochemicals, diamonds, automobiles, chocolates and carpets traded with countries such as Netherland, Germany, France, and USA.
Belgium currently houses over 200 freight forwarding companies, leading to fierce competition. Post the enlargement of the EU; Belgium freight forwarders have witnessed higher pressure of competition from Central and Eastern Europe. This along with the advent of e-commerce paints the competitive landscape of the country. In order to protect themselves from the regional competition, firms are isolating multinational strategies and trying to achieve economies of scale and optimal production within specific regions. Outsourcing is also being increasingly done to achieve cost and production efficiency. Trucking companies have now begun aggregating and consolidating trucking activities, or began to specialize themselves in particular types (for example tank trucks) or in specific regions (primarily, Benelux).
Future Outlook and Projections
Belgium Freight Forwarding Market is expected to register a high CAGR during 2018-2025. This is mainly due to the adoption of advanced technology such as blockchain by Antwerp Port, EUR 3 billion investments by Belgian Railways Board, which includes reducing the number of rail logistics centers from 62 to 50 by 2022 and introducing two new tracks between Ghent and Bruges. Airfreight capacity is expected to increase by 3% till at least 2025 and is also likely to rise further till 2030.