Asia Pacific Domestic Courier Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 156.61 Billion |
| Market Size (2030) | USD 216.01 Billion |
| Growth Rate (2025 - 2030) | 6.64% CAGR |
| Market Concentration | High |
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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Asia Pacific Domestic Courier Market Analysis by Mordor Intelligence
The Asia-Pacific domestic courier market size is valued at USD 156.61 billion in 2025 and is projected to reach USD 216.01 billion by 2030, translating into a 6.64% CAGR over 2025-2030. Momentum comes primarily from the digital-commerce push into lower-tier cities, rapid healthcare cold-chain adoption and liberalized rail freight corridors that shorten inter-city transit times. IPv6-enabled smart-locker grids are already trimming last-mile costs in Japan and South Korea, while green-shipping levies are nudging fleets toward electric vans and two-wheelers. Competitive intensity remains high because global integrators must face agile domestic champions with deep local networks. Technology gaps among countries persist, creating room for service differentiation through autonomous vehicles, real-time tracking and platform integrations with social-commerce channels. Regulatory headwinds around congestion fees, driver overtime caps and data-privacy restrictions temper the upside yet continue to push operators toward automation and sustainable assets.
Key Report Takeaways
- By end user industry, e-commerce held 34.49% of the Asia-Pacific domestic courier market size in 2024, while healthcare shipments are set to grow at a 7.01% CAGR over 2025-2030.
- By model, business-to-consumer (B2C) accounted for 53.33% of the revenue share in 2024; consumer-to-consumer (C2C) deliveries are projected to expand at a 6.82% CAGR between 2025-2030.
- By speed of delivery, non-express services represented 53.99% of the revenue share in 2024; the express segment is anticipated to climb at a 7.05% CAGR between 2025-2030.
- By shipment weight, light weight parcels captured 55.34% of the revenue share in 2024; heavy parcels are advancing at a 6.91% CAGR between 2025-2030.
- By geography, China controlled 58.95% of the Asia-Pacific domestic courier market share in 2024; India is forecast to register a 10.51% CAGR between 2025-2030.
Asia Pacific Domestic Courier Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce growth beyond tier-2 cities | +1.8% | China, India, Indonesia, Vietnam, Thailand | Medium term (2-4 years) |
| Healthcare cold-chain mandates | +1.2% | Japan, Australia, Singapore, Malaysia, Philippines | Long term (≥ 4 years) |
| Quick-commerce dark-store scaling | +1.5% | Urban India, China, Thailand | Short term (≤ 2 years) |
| Rail-freight liberalization for overnight parcels | +0.9% | China-ASEAN corridors, Australia | Long term (≥ 4 years) |
| IPv6 smart-locker deployment | +0.7% | Japan, South Korea, urban China | Medium term (2-4 years) |
| Green-shipping levies driving EV fleets | +0.5% | Australia, Japan, China | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
E-commerce Growth Beyond Tier-2 Cities
Rising smartphone penetration, vernacular shopping interfaces and government-backed digital-payment programs are pushing online buying well outside prime metros. Parcel demand from India’s tier-3 towns jumped, while Indonesia’s rural e-commerce recorded a 65% year-on-year rise in 2024. Regional couriers are pivoting toward denser spoke locations, low-cost micro-sorting hubs and mobile cash-on-delivery workflows. Domestic players with ground networks gain from shorter stem-times, whereas premium international integrators re-evaluate service tiers to stay price-competitive. Municipal permits for doorstep access and simplified return logistics further amplify volume curves[1]“Logistics Performance Index 2024,” Bank Indonesia, bi.go.id .
Healthcare Cold-Chain Mandates for Biologics Deliveries
Demographic aging and biosimilar uptake fuel temperature-controlled shipment demand. Japan enforces ±2 °C integrity throughout transit, spurring GDP-certified warehouse expansion and specialized vehicle retrofits. DHL earmarked EUR 500 million (USD 551.82 million) for fifteen dedicated sites across the region. Operators with validated packaging, trained staff and continuous telemetry can charge premiums that offset higher capex. Regulatory disparities still exist, but mutual-recognition agreements are gaining traction, especially between Australia, Singapore and Japan[2]“Guidelines for Biologics Distribution,” Japan Ministry of Health, mhlw.go.jp.
Quick-Commerce Dark-Store Scaling
Hyperlocal grocery and convenience platforms now guarantee deliveries inside 30-minute windows, forcing couriers to re-architect city logistics around micro-fulfillment nodes. Average intra-city delivery distances in Shanghai and Bengaluru dropped below 5 km in 2024, and gig-economy riders dominate this sub-4-hour segment. Profitability hinges on order-density algorithms and AI-driven stock positioning. Labor classification debates and social-security compliance remain unresolved; still, same-day volumes justify investment in predictive routing and instant proof-of-delivery modules.
Rail-Freight Liberalization for Overnight Parcels
Cross-border rail links from southwestern China into ASEAN enable overnight parcel trains that bypass congested highways. China Railway’s 2024 launch of time-tabled freight sets a precedent, while Australia’s proposed high-speed corridors could cut Sydney-Melbourne parcel lead times to half current levels. Heavy parcels stand to benefit most due to rail’s cost per kilogram advantage, but last-mile connectivity and harmonized customs processes still dictate service reliability.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surging urban toll and congestion fees | -1.1% | China, India, Thailand | Short term (≤ 2 years) |
| Courier labor shortages after overtime caps | -0.8% | Japan, Australia, South Korea, ASEAN | Medium term (2-4 years) |
| Cross-border data-privacy rules | -0.6% | Malaysia, Thailand, Philippines | Long term (≥ 4 years) |
| Insurance gaps for autonomous vehicles | -0.4% | Japan, Singapore | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Surging Urban Toll and Congestion Fees
Expanded congestion pricing in Bangkok raised courier operating costs by up to 20% in 2024. Singapore’s electronic road-pricing revisions impose dynamic surcharges based on real-time traffic. Couriers respond by shifting deliveries to off-peak slots, aggregating drop-points and accelerating EV adoption to access discounted green-lane pricing. Smaller firms without route-optimization engines feel margin pressure most acutely[3]Singapore Land Transport Authority, “Road Pricing Framework,” lta.gov.sg .
Courier Labor Shortages After Overtime Caps
Japan’s 2026 overtime limits tighten available driver hours, prompting wage inflation and capacity gaps. The demographic crunch compounds the issue as the driver median age surpasses 50. Enterprises race toward partial automation, crowd-sourcing labor pools and exploring nighttime parcel trains as human-resource substitutes. Seasonal sales periods particularly expose vulnerabilities in surge capacity planning[4]“Congestion Pricing 2024,” Bangkok Metropolitan Administration, bangkok.go.th .
Segment Analysis
By End User Industry: Healthcare Sets the Growth Curve
E-commerce preserved its 34.49% revenue share in 2024, yet healthcare is expected to register 7.01% CAGR between 2025-2030, the fastest among all verticals. Biologics delivery and prescription-drug home services demand cold-chain integrity, secure chain of custody and compliance documentation. These technical barriers give specialist operators a defensible margin edge. The Asia-Pacific domestic courier market share for healthcare stood at 8.2% in 2024 and will rise steadily as aging populations drive pharmaceutical volumes. Couriers invest in real-time sensor probes and tamper-evident locks, differentiating through end-to-end temperature dashboards accessible to pharmacists and patients alike.
Manufacturing and wholesale trade maintain predictable B2B schedules that enable densified truckloads and advance routing. Financial-services parcels carry high intrinsic value; thus, biometric hand-off protocols and geofence alerts remain mandatory. Seasonal surges from agricultural exports create cyclical capacity spikes, prompting carriers to reserve flex space in regional hubs. Diversified vertical exposure insulates revenue streams from sector-specific downturns and opens cross-selling opportunities for bundled supply-chain services.
Note: Segment shares of all individual segments available upon report purchase
By Speed of Delivery: Express Services Capture Urgency Premiums
Express offerings represented 46.01% of revenue in 2024 and are forecast to grow at a 7.05% CAGR between 2025-2030, buoyed by sub-hour grocery fulfillment and enterprise demand for time-critical documents. The Asia-Pacific domestic courier market size for express shipments is projected to reach USD 99 billion by 2030, reflecting a steady migration from standard two-day options. Operators leverage IPv6 real-time traffic feeds and AI-routed dispatch to meet narrow delivery windows while minimizing idle miles. Standard services still command volume leadership, particularly for lower-value e-commerce items where price sensitivity outweighs urgency. Competition now centers on differentiated service-level agreements and dynamic surcharge architectures that align pricing to actual lead time guarantees. As cities expand low-emission zones, express couriers increasingly deploy electric two-wheelers and cargo bikes to sustain urban penetration.
The express premium depends on predictability; hence, companies invest heavily in optical-character-recognition scanners, autonomous sorters and predictive weather analytics. Customer-facing applications emphasize proactive delay notifications and multi-option delivery rescheduling, both of which lift satisfaction scores and encourage repeat spending. Standard-tier profitability tightens as price wars escalate; however, bundling value-added services such as reverse logistics and doorstep quality checks helps defend margins. Hybrid networks that cross-utilize express capacity during off-peak periods maintain load factors and mitigate fuel-cost volatility.
By Shipment Weight: Heavy Parcels Shape Infrastructure Choices
Light parcels continue to anchor 55.34% of regional value in 2024, yet the heavy-parcel cohort will post the sharpest revenue gains at 6.91% CAGR between 2025-2030. Within this band, furniture kits, industrial spares and agriculture inputs dominate shipment manifests. Heavy-parcel lanes already account for nearly USD 48 billion of the Asia-Pacific domestic courier market size and will push operators to adopt tail-lift vans, palletized sortation and reinforced floor conveyors. Bulkier loads also accelerate interest in rail-freight hand-offs to curb unit costs on distances exceeding 800 km. Warehousing footprints adjust accordingly, adding high-clearance bays and mechanized mezzanine lifts.
Medium-weight parcels occupy a stabilizing middle ground, benefiting from automated sorters and standardized packaging that boost throughput. The weight mix ultimately dictates network design; hence, future hubs integrate modular docks adaptable to varying parcel forms. Regulatory oversight of occupational safety tightens alongside volume growth, compelling carriers to roll out exoskeleton trial programs and comprehensive lifting-tech training. Insurers monitor compliance closely, and preferred-rate premiums now depend on digital logs that verify adherence to safe-handling protocols.
Note: Segment shares of all individual segments available upon report purchase
By Model: C2C Channels Accelerate Through Social Commerce
B2C transactions still generate 53.33% of shipments thanks to entrenched marketplace infrastructures and established pickup-drop networks. Yet C2C momentum builds as social-commerce and resale apps proliferate across Southeast Asia. C2C volumes will expand at 6.82% CAGR between 2025-2030, aided by app-based pick-onsite labels, selfie-verified handoffs and micro-insurance for single-item high-value goods. Operators differentiate by offering on-demand packaging, cash collection and video-recorded proof of condition at pickup. The Asia-Pacific domestic courier industry increasingly leans on predictive density mapping to position roaming agents near hotspots for peer-to-peer exchanges.
B2B flows retain structural importance for linehaul optimization because palletized consignments stabilize hub utilization. Electronic data interchange and API hooks with enterprise resource planning suites further streamline documentation, lowering error rates and dispute overhead. The three-model mix mitigates dependence on any single revenue pillar while maximizing truck-fill through multi-segment backhauls.
Geography Analysis
China’s dominance springs from unparalleled parcel density with a 58.95% share in 2024, advanced automated sorting, and vast high-speed rail extensions. Annual domestic parcel throughput exceeded 120 billion in 2024. Urban clusters such as the Yangtze River Delta achieve routinely next-day fulfillment even for heavy parcels as consolidated night trains feed regional distribution centers by dawn. Government incentives for digital payments and aggressive 5G rollout keep customer conversion rates high, although rising labor costs and stringent environmental policies spur capex in robotics and electric fleets.
India constitutes the quickest growth engine with a 10.51% forecast CAGR between 2025-2030. Government-seeded digital-payment rails and logistical reforms like the Goods and Services Tax unify fragmented state tax regimes, easing interstate movements. Rural expansion hinges on cost-efficient bike-based delivery and community parcel lockers. The Asia-Pacific domestic courier market size generated by India alone is expected to cross USD 32 billion by 2030. Nevertheless, last-mile inaccessibility during monsoon seasons and uneven road quality remain hurdles, pushing carriers toward multimodal solutions including riverine barges in eastern states.
Japan and Australia illustrate mature yet premium markets. High consumer expectations normalize same-day commitments and drive experimentation with autonomous pods under ministry-supervised pilots. Labor shortages catalyze warehouse automation, while strict data-privacy laws shape IT-system architecture. Southeast Asia—Indonesia, Thailand, Vietnam and the Philippines—contributes accelerating volumes on the back of consumer digitization and foreign-direct-investment-led manufacturing growth. Infrastructure gaps persist, but flagship e-commerce festivals like Double-Twelve continue to set new single-day parcel records. Effective coverage requires country-specific playbooks, localized language support and nimble tariff-navigation capabilities.
Competitive Landscape
The domestic courier services market in the Asia-Pacific is witnessing a significant transformation through various strategic initiatives by leading players. Companies are increasingly focusing on technological innovation, particularly in automated sorting systems, delivery robots, and AI-powered route optimization to enhance operational efficiency.
Operational agility is being achieved through the establishment of micro-fulfillment centers, expansion of delivery networks, and adoption of flexible delivery models, including same-day and next-day options. Strategic partnerships, especially between courier companies and e-commerce platforms, have become a crucial trend to expand market reach and improve last-mile delivery capabilities.
Market leaders are also pursuing aggressive expansion strategies through the development of new logistics parks, sorting hubs, and cross-border facilities, while simultaneously investing in sustainable delivery solutions, including electric vehicles and green packaging alternatives.
Asia Pacific Domestic Courier Industry Leaders
-
China Post
-
SF Express (KEX-SF)
-
SG Holdings Co., Ltd.
-
Shanghai YTO Express (Logistics) Co., Ltd.
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Yamato Holdings Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2024: DHL Group invested USD 25 million to expand its Bijwasan, Delhi hub, increasing sorting capacity by 40% and adding GDP-certified cold-rooms.
- November 2024: FedEx widened its International Connect Plus network to China, Hong Kong and Japan, ensuring 2-3-day delivery to 220+ countries with enhanced clearance APIs.
- October 2024: Japan Post Holdings earmarked USD 150 million for AI-driven route optimization and automated sorters across 50 facilities.
- September 2024: CJ Logistics completed the USD 180 million buy-out of Kerry Express Thailand, adding 2,500 domestic service points and integrating last-mile tracking to its pan-Asian app.
Asia Pacific Domestic Courier Market Report Scope
Express, Non-Express are covered as segments by Speed Of Delivery. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Australia, China, India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Thailand, Vietnam are covered as segments by Country.| Express |
| Non-Express |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Australia |
| China |
| India |
| Indonesia |
| Japan |
| Malaysia |
| Pakistan |
| Philippines |
| Thailand |
| Vietnam |
| Rest of Asia-Pacific |
| Speed of Delivery | Express |
| Non-Express | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Country | Australia |
| China | |
| India | |
| Indonesia | |
| Japan | |
| Malaysia | |
| Pakistan | |
| Philippines | |
| Thailand | |
| Vietnam | |
| Rest of Asia-Pacific |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- 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.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- 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.
- 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).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- 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.
- Infrastructure - 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), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- 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.
- 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.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. 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.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) 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; (ii) cover entire phases from upstream to downstream and play 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. 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.
- 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.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) 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.
- 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. Hence, 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.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. 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 |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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
