Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 43.30 Billion |
| Market Size (2030) | USD 60.90 Billion |
| Growth Rate (2025 - 2030) | 7.07% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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ASEAN Cross Border Road Freight Transport Market Analysis by Mordor Intelligence
The ASEAN cross border road freight transport market size stands at USD 43.3 billion in 2025 and is forecast to reach USD 60.9 billion by 2030, expanding at a 7.07% CAGR between 2025-2030; these figures anchor the market’s current scale and forward trajectory. Rising intra-ASEAN trade, valued at USD 800 billion by 2030, is sharpening the focus on predictable trucking capacity, while the ASEAN Single Window continues to trim average border clearance by four days, lowering landed costs and elevating service reliability. Digital freight platforms tapping the ASEAN Customs Transit System (ACTS) API infrastructure reduce empty-mile rates and attract multinational shippers that require real-time shipment visibility. At the same time, manufacturing FDI reallocations toward Cambodia, Laos, Myanmar, and Vietnam (CLMV) anchor fresh component corridors, while Indonesia’s downstream nickel-processing boom creates steady hazardous-goods volumes that reward certified carriers. Persistent driver shortages, new fuel-pricing regimes, and rail competition from the Kunming–Vientiane route remain the principal headwinds.
Key Report Takeaways
- By end user industry, manufacturing held 34.24% of ASEAN cross border road freight transport market share in 2024, while wholesale and retail trade is advancing at an 8.33% CAGR between 2025-2030.
- By country, Indonesia accounted for 46.03% share of the ASEAN cross border road freight transport market size in 2024, whereas Vietnam is registering the fastest 7.48% CAGR during 2025-2030.
ASEAN Cross Border Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| ASEAN e-commerce boom fuels time-sensitive cross-border truckload demand | +1.2% | Regional, strongest in Thailand, Vietnam, Indonesia | Medium term (2-4 years) |
| ACTS and other ASEAN trade-facilitation frameworks cut border dwell time | +0.9% | Regional, early gains in Malaysia, Thailand, Singapore | Short term (≤ 2 years) |
| Rapid manufacturing FDI shift to CLMV drives intra-ASEAN component flows | +1.5% | CLMV core, spill-over to Thailand, Malaysia | Long term (≥ 4 years) |
| Battery-grade nickel exports from Indonesia create hazardous-goods trucking corridors | +0.4% | Indonesia-centric, extending to regional processing hubs | Medium term (2-4 years) |
| Cold-chain build-out for seafood and produce opens new temperature-controlled lanes | +0.6% | Regional, concentrated in Thailand, Vietnam, Malaysia | Medium term (2-4 years) |
| Digital freight platforms using ACTS APIs slash empty-mile rates | +0.8% | Regional, advanced implementation in Singapore, Malaysia | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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ASEAN E-Commerce Boom Fuels Time-Sensitive Cross-Border Truckload Demand
Soaring parcel volumes have moved the market toward smaller, higher-frequency shipments that challenge legacy full-truckload models yet unlock premium pricing for expedited cross-border lanes. J&T Express handled 1.69 billion parcels in Southeast Asia during Q2 2025, a 65.9% year-on-year rise, relying on 5,400 long-haul vehicles that now traverse multiple borders daily[1]Markets Insider, “Shareholders Approve XLSMART Merger,” markets.businessinsider.com. Marketplaces increasingly insist on guaranteed next-day delivery windows and API-enabled status updates, prompting fleets to install telematics and dynamic routing tools. This digital integration supports growth in cross-border express services and compresses transit windows, heightening the competitive advantage of carriers that embrace platform economy standards.
ACTS and Allied Trade-Facilitation Frameworks Cut Border Dwell Time
The ASEAN Customs Transit System represents a structural change in compliance processing, providing a single electronic guarantee regime that simplifies multi-country clearances and slashes paperwork[2]ASEAN Secretariat, “ASEAN Trade Report 2024,” ASEAN.org. Early-adopter corridors linking Singapore, Malaysia, and Thailand report dwell-time reductions from 24 hours to under six, producing higher trailer turns and improved asset yields. Singapore’s 2025 upgrade of vehicle-permit procedures aligns road-haul documentation with ACTS data fields, underpinning seamless transfers. Authorized Economic Operator (AEO) fast-track lanes further demarcate a tiered framework that rewards compliant carriers, raising barriers for informal truckers and nudging shippers toward vetted fleets.
Rapid Manufacturing FDI Shift to CLMV Drives Intra-ASEAN Component Flows
China’s USD 12.96 billion capital injection into ASEAN industries during January–July 2024 marked a 15.3% annual increase, accelerating parts flows across Vietnam, Thailand, and Malaysia[3]China Daily, “China’s Investment in ASEAN Reaches USD 18.9 Billion in 2024,” chinadaily.com.cn. As electronics assemblers relocate, just-in-time supply chains rely on dependable trucking to shuttle semi-finished goods over land borders multiple times before final export. Large 3PLs have responded; DSV added scheduled box-truck services linking industrial zones in Southern China with Hanoi and Bangkok to shorten lead times by two days relative to seaport options. The densification of these corridors locks in repeat volumes that bolster fleet utilization across the region.
Digital Freight Platforms Using ACTS Apis Slash Empty-Mile Rates
Start-ups and incumbent 3PLs alike now publish vehicle positions and capacity via open APIs integrated with ACTS, fostering automated tender allocation. Carriers operating out of Singapore and Malaysia report empty-mile declines of 12% as algorithm-driven pooling matches backhauls within minutes of border clearance events[4]Land Transport Authority of Singapore, “Updated ASEAN Vehicle Permit Procedures,” lta.gov.sg. Shippers gain dynamic pricing transparency that encourages volume commitments, while fleets win from higher revenue per kilometer and better driver retention owing to steadier hours.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Chronic driver shortages and ageing truck fleets push operating costs up | -1.1% | Regional, acute in Thailand, Malaysia, Singapore | Short term (≤ 2 years) |
| Uneven axle-load enforcement disrupts long-haul scheduling | -0.7% | Regional, particularly Vietnam, Thailand borders | Medium term (2-4 years) |
| Rail modal shift on Kunming–Vientiane and Pan-Borneo corridors cannibalises long-haul road tonnage | -0.9% | China-Laos-Thailand corridor, Borneo region | Long term (≥ 4 years) |
| Methanol price spikes jeopardise Indonesia's B40 biodiesel cost advantage | -0.5% | Indonesia-centric, regional fuel cost implications | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Chronic Driver Shortages and Ageing Truck Fleets Push Operating Costs Up
Regional wage gaps and demographic shifts squeeze the pool of qualified drivers, with Japan recruiting Vietnamese and Indonesian operators under its specified-skills visa to plug its own shortages, further draining local supply. Older vehicles require more downtime, and operators hesitate to reinvest amid fuel-price volatility following Malaysia’s 2024 diesel subsidy removal. Certification requirements for hazardous and temperature-controlled haulage exacerbate scarcities, inflating driver premiums in these niches. Fleet renewal programs, including tax rebates in Thailand for Euro 6 trucks, partially soften the blow, yet cannot fully offset the immediate labor mismatch.
Rail Modal Shift on Kunming–Vientiane and Pan-Borneo Corridors Cannibalizes Long-Haul Road Tonnage
The China-Laos Railway has moved 56 million tons of freight since launch, including 13 million tons of cross-border cargo that historically rode on trucks. Express train services cut Kunming-Bangkok door-to-door transit by 30 hours, winning over bulk agricultural shippers and temperature-sensitive fruit exporters. Though road remains indispensable for first- and last-mile legs, long-haul share erosion presses trucking margins and forces operators to redesign networks around intermodal offerings, buffering but not eliminating volume leakage.
Segment Analysis
By End User Industry: Manufacturing Maintains Lead While E-Commerce Lifts Trade Segment
Manufacturing contributed 34.24% to the ASEAN cross border road freight transport market share in 2024, reflecting entrenched just-in-time supply chains for electronics, automotive, and apparel components. Component-heavy corridors—such as China to Vietnam and Vietnam to Thailand—register daily loops that underpin elevated trailer utilization rates and sustain high-capacity purchases among large 3PLs. The influx of China-plus-one investment cements Vietnam and Cambodia as assembly hubs, inflating demand for cross-border shuttle runs feeding final-assembly lines. Wholesale and retail trade, although accounting for a smaller base, will outrun every other sector at an 8.33% CAGR between 2025-2030, propelled by surging B2C parcel flows that call for tight delivery windows and frequent dispatches. These twin patterns build a more complex freight mix that forces carriers to diversify equipment—from dry vans to temperature-controlled units—ensuring they capture value across multiple verticals.
The oil and gas, mining, and quarrying cluster receives a structural uplift from Indonesia’s nickel-processing boom, which necessitates specialized truck fleets outfitted for hazardous materials. Cold-chain build-outs for fisheries in Thailand and Vietnam add reefer lanes, while construction materials benefit from large-scale road and rail projects entwined with China’s Belt and Road initiatives. The sector mix signals a shift away from dominance by bulk commodities toward a balanced portfolio where high-value, time-critical loads command premium yields. This evolution underpins the ASEAN cross border road freight transport market size expansion trajectory, reinforcing the strategic imperative for fleet renewal and driver up-skilling.
Note: Segment shares of all individual segments available upon report purchase
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Geography Analysis
Indonesia’s 46.03% stake in the ASEAN cross border road freight transport market size during 2024 underscores its dual role as the region’s largest economy and premier battery-grade nickel-processing hub. Concentrated plants in Sulawesi and North Maluku dispatch consistent hazardous-goods flows toward Malaysia and Singapore, while Java-Sumatra inter-island routes feed domestic consumption centers. Government road-upgrade programs tie remote smelters to mainland corridors, curbing average trip times by 15% and further entrenching trucking’s primacy for bulk intermediate shipments.
Vietnam leads growth at a 7.48% CAGR between 2025-2030, buoyed by export-oriented industrial parks in Bac Ninh and Binh Duong that depend on steady component inflows from Southern China and synchronized outbound runs to port gateways. The Vietnam SuperPort, funded to integrate AI-driven yard management with over-the-road fleet dispatch, is scheduled to cut gate-to-gate cross-docking times by 40% once fully operational in 2026. Thailand and Malaysia together provide critical land-bridge capacity; Malaysia’s ports funnel Indonesian nickel exports, whereas Thailand’s Eastern Economic Corridor stimulates automotive part movements along the Bangkok-Laem Chabang-Rayong triangle.
Smaller markets—Cambodia, Laos, and Myanmar—register low base volumes but post double-digit lane growth, powered by new border posts and the Kunming–Vientiane rail extension. Laos leverages its logistics park in Vientiane to serve as a rail-road transshipment node, offering bonded-truck options toward Thailand that shorten total transit time by one day compared with pure-road alternatives. Collectively, these dynamics affirm the distributed yet integrated nature of ASEAN freight flows, a hallmark that continues to draw infrastructure and technology investment across the bloc.
Competitive Landscape
The ASEAN cross border road freight transport industry remains moderately fragmented, yet the scale tilt continues toward operators that marry network breadth with digital fluency. DHL Group enhances end-to-end EV battery logistics with certified facilities and in-house customs brokerage, positioning itself to capture Indonesia-to-Thailand nickel sulfate flows. Nippon Express leverages its Pan-Borneo services to knit East Malaysia and Kalimantan markets into its ASEAN network, mitigating volume risks from peninsula-only corridors. Regional champions such as Gemadept harness port adjacencies in Ho Chi Minh City to offer trucking-plus-barge combinations that compress delivery windows for textile exporters.
Consolidation shapes the competitive tone: DSV’s planned EUR 14.3 billion (USD 15.8 billion) acquisition of DB Schenker will create a network whose ASEAN road footprint spans 9,300 tractors and 11,100 trailers, promising deeper frequency on trunk lanes linking Singapore, Kuala Lumpur, Bangkok, and Hanoi. Mid-tier players respond by forming alliances—Konoike Transport’s cold-chain pact with local Thai fleets shares temperature-controlled capacity while preserving brand identity. Digital freight start-ups, including cohorts funded by Singaporean venture investors, emphasize API integration and instant quoting, siphoning contract-manufacturing volumes from paper-based forwarders unable to plug into e-commerce ecosystems.
Strategic moves skew toward capability expansion rather than pure capacity. GEODIS launched returns-management modules in June 2025 to capture reverse-logistics flows created by online retail. J&T Express Thailand opened a dedicated drop-off facility at BITEC Bangna in July 2025, a site located near key highway junctions to enable one-hour cross-dock into long-haul trucks destined for Laos and Malaysia. These developments reveal how service differentiation and targeted asset deployment shape competitive positioning more decisively than fleet count alone.
ASEAN Cross Border Road Freight Transport Industry Leaders
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DHL Group
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GEODIS
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SF Express (KEX-SF)
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Nippon Express Holdings
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Tiong Nam Logistics Holdings Bhd
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- July 2025: J&T Express Thailand opened a new parcel drop-off point at Bangkok’s BITEC Bangna to improve regional e-commerce fulfillment speed.
- June 2025: GEODIS announced two new returns solutions—a workflow-automation module for customer initiation and a warehouse returns-management module—to streamline e-commerce reverse logistics.
- March 2025: DHL launched enhanced EV and battery supply-chain solutions in the Asia Pacific, delivering certified cross-border trucking and warehousing services for battery manufacturers.
- October 2024: SF Express inaugurated its logistics center at the SATS Core A warehouse inside Changi Airfreight Centre, enabling faster transshipment into ASEAN trucking lanes.
ASEAN Cross Border Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Indonesia, Malaysia, Thailand, Vietnam are covered as segments by Country.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Country
| Indonesia |
| Malaysia |
| Thailand |
| Vietnam |
| Rest of ASEAN |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Country | Indonesia |
| Malaysia | |
| Thailand | |
| Vietnam | |
| Rest of ASEAN |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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