Canada Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 17.40 Billion |
| Market Size (2030) | USD 22.40 Billion |
| Growth Rate (2025 - 2030) | 5.18% CAGR |
| Market Concentration | Medium |
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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Canada Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Canada courier, express, and parcel market size is valued at USD 17.4 billion in 2025 and is projected to reach USD 22.4 billion by 2030, reflecting a 5.18% CAGR between 2025-2030. The Canada courier, express, and parcel market is expanding because e-commerce continues to escalate parcel volumes, international trade diversification is redirecting flows into premium express channels, and federal sustainability incentives are reshaping fleet strategies. Rising demand for same-day fulfillment in the Greater Toronto Area and Metro Vancouver, intensified cross-border activity along the 150-mile U.S. border corridor, and strategic infrastructure investments under the National Trade Corridors Fund collectively sustain growth momentum. Meanwhile, technology-enabled competitors such as Amazon Logistics are redefining service benchmarks, triggering accelerated network upgrades among traditional integrators. Fleet electrification commitments from incumbents like FedEx and UPS mitigate fuel-price exposure and align service offerings with corporate procurement policies that now mandate emissions transparency.
Key Report Takeaways
- By destination, domestic shipments led with 62.71% revenue share in 2024, while international flows are forecast to expand at a 5.35% CAGR between 2025-2030.
- By speed of delivery, non-express services retained a 72.61% share of the Canada courier, express, and parcel market size in 2024, whereas express offerings are advancing at a 5.85% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) flows accounted for 58.71% of the Canada courier, express, and parcel market share in 2024, and consumer-to-consumer (C2C) parcels are projected to register a 2.94% CAGR between 2025-2030.
- By shipment weight, light-weight parcels captured 51.16% of the revenue share in 2024; heavy-weight consignments are predicted to expand at a 4.72% CAGR between 2025-2030.
- By mode of transport, road services held 49.12% of 2024 revenue, whereas air transport is growing at a 4.40% CAGR between 2025-2030 as cross-border express demand accelerates.
- By end user industry, e-commerce generated 35.98% of the revenue in 2024, while healthcare logistics is the fastest-growing segment at a 5.44% CAGR between 2025-2030.
Canada Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom and omnichannel retail | +1.8% | Nationwide concentration in GTA, Metro Vancouver, Montréal | Medium term (2-4 years) |
| Demand for same-/next-day delivery | +1.2% | Toronto, Vancouver, Calgary, Ottawa | Short term (≤ 2 years) |
| Cross-border e-commerce expansion | +0.9% | Border corridors, major airports, U.S.-adjacent provinces | Long term (≥ 4 years) |
| Out-of-home (locker) networks growth | +0.6% | Dense urban and suburban retail nodes | Medium term (2-4 years) |
| Urban micro-fulfillment hubs | +0.4% | GTA, Metro Vancouver | Short term (≤ 2 years) |
| Fleet electrification incentives | +0.3% | Ontario, Québec, British Columbia | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
E-commerce Boom and Omnichannel Retail
Retailers accelerate omnichannel strategies to satisfy shoppers who now expect unified click-and-collect, curbside pickup, and one-day drop-off options. Walmart’s CAD 6.5 billion (USD 4.90 billion) supply-chain modernization over 2025-2029 exemplifies how brick-and-mortar chains outsource specialized middle- and last-mile work to third-party carriers[1]Deli Staff, “Walmart Canada Unveils CAD 4.51 Billion Investment,” delimarketnews.com. Peak-season surges during Cyber Week compel carriers to pre-position inventory and activate overflow hubs, emphasizing the importance of flexible capacity agreements. White-glove installation, reverse logistics, and value-added returns handling have become differentiators that protect margins in a commoditized ground market. As retailers rationalize physical footprints, demand concentrates in metro fulfillment nodes, reinforcing density advantages for carriers with granular route optimization.
Demand for Same-/Next-Day Delivery
Amazon’s introduction of 7-hour same-day windows across Southern Ontario and Metro Vancouver reset consumer baselines in 2024[2]About Amazon, “Same-Day Delivery Gets Faster in Canada,” aboutamazon.ca. Incumbents such as Purolator responded by expanding sortation capacity and accelerating scheduled line-haul departures to achieve sub-24-hour cycle times. Network densification through micro-fulfillment centers reduces stem miles and supports steady driver utilization, yet cost-to-serve remains high in ex-urban zones. Carriers leverage dynamic pricing to recoup premium capacity deployed during evening waves, though rural communities still face service-level gaps. Route-planning algorithms that ingest real-time traffic and weather data are critical to avoiding service-credit penalties under increasingly stringent shipper SLAs.
Cross-Border E-Commerce Expansion
Canada’s proximity to U.S. consumers, coupled with CBSA’s CARM rollout, lowers compliance friction and attracts overseas sellers seeking North American reach. Scotiabank estimates that every 10-percentage-point shift away from U.S. trade partners could lift air-cargo share by 2% and marine by 4%, underscoring room for modal conversion. GLS’s 2025 plan to link Canadian routes with its European and U.S. gateways highlights competitive emphasis on duty-paid parcel services that minimize buyer surprise fees[3]Parcel and Postal Technology International, “GLS Expands International Delivery Services,” gls-group.com. Carriers offering transparent landed-cost calculators gain stickiness among Shopify merchants exporting to the United States. Nonetheless, brokerage complexity and fluctuating exchange rates require integrated customs platforms to sustain profit margins.
Out-of-Home (Locker) Networks Growth
Failed-delivery costs and rising condo density spur investments in automated locker ecosystems anchored in grocery stores, transit hubs, and office towers. Amazon’s exchange-point warehouses in Sarnia and Cornwall illustrate a hybrid model where national sorting is coupled with regional final-mile partners. Mobile alerts and QR-code access streamline pickup, reducing door-attempt cycles and carbon emissions associated with re-delivery runs. Provincial zoning ordinances differ on locker installation in public right-of-way, necessitating robust compliance frameworks. Critical mass is essential; utilization must exceed 40% per day to offset rental and servicing costs, incentivizing collaborative host-site agreements between carriers.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High labor and fuel costs | -0.8% | Nationwide, acute in large metros | Short term (≤ 2 years) |
| Price-competition pressures | -0.6% | National, amplified in major markets | Medium term (2-4 years) |
| Urban access regulations | -0.4% | Toronto, Vancouver, Montréal cores | Medium term (2-4 years) |
| Rural delivery profitability gap | -0.3% | Northern territories and remote towns | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Labor and Fuel Costs
Amazon’s USD 100 million wage boost in 2024 signaled sector-wide escalation, raising the baseline for driver compensation across Ontario and British Columbia. Tight labor pools elevate turnover, inflating recruitment and training spend for unionized and non-union fleets alike. Diesel volatility, averaging CAD 1.92 (USD 1.44) per liter in 2025 per federal data, pushes operating ratios above 88% for asset-heavy carriers. Although ZEVIP rebates accelerate electrification, capital outlays strain balance sheets for family-owned regional couriers. Technology adoption—ranging from automated shift-planning to AI-based fuel-route optimization—yields incremental savings but cannot fully offset macro cost pressures in the near term.
Price Competition Pressures
Amazon Logistics and nimble regional players aggressively discount per-stop rates, compressing yields on commoditized ground services. Canada Post’s 2025 rate case illustrates how incumbents must justify increases against political and competitive scrutiny[4]Innovation, Science and Economic Development Canada, “Government of Canada Approves Canada Post Rate Adjustments,” canada.ca. To preserve margins, carriers bundle installation, white-glove setup, and hassle-free returns that command upcharges from furniture and electronics shippers. U.S.-based integrators leverage bilateral network scale to undercut Canadian peers on cross-border lanes, particularly on “zone 2” Toronto-Buffalo routes. Mid-tier providers without distinctive niches risk margin squeeze, leading to consolidation or strategic alliances that share fixed costs.
Segment Analysis
By End User Industry: E-Commerce Leads, Healthcare Accelerates
E-commerce generated 35.98% of parcels in 2024 as shoppers shifted discretionary spending online. Retailers outsource fulfillment spikes to third-party logistics firms capable of absorbing Cyber Week volumes. The Canada courier, express, and parcel industry increasingly courts healthcare parcels that are projected to grow at a 5.44% CAGR between 2025-2030; UPS’s CAD 2.2 billion (USD 1.65 billion) Andlauer acquisition delivers GDP-compliant cold-chain capability indispensable for biologics. Pharmaceutical reforms enabling mail-order prescriptions unlock new growth nodes for temperature-managed deliveries.
Manufacturing and wholesale remain reliable, albeit slower-growing, customers, utilizing scheduled courier pickups for sample products and urgent spare parts. Financial and legal sectors sustain niche demand for secure, time-stamped document transport, though digitization moderates yearly volume uplift.
Note: Segment shares of all individual segments available upon report purchase
By Destination: Cross-Border Gains Momentum
International volumes are tracking a robust 5.35% CAGR between 2025-2030 as shippers leverage Canada’s customs-friendly gateways to reach U.S. and overseas consumers. The Canada courier, express, and parcel market size tied to cross-border activity continues to expand as CBSA’s CARM system trims clearance delays and enhances shipment visibility. Road networks funnel 90% of domestic residents within a 150-mile radius of U.S. entry points, simplifying injection into American hubs. Modal re-balancing favors airfreight for high-value electronics and time-definite healthcare consignments, while marine options rise for bulkier e-commerce replenishment loads.
Domestic flows still dominate at 62.71% of revenues in 2024, reflecting e-commerce demand and dense metro fulfillment footprints. Amazon operates more than 65 Canadian logistics sites, underpinning hyperlocal service reliability. Shippers value predictable costs and simplified returns within national borders, though cross-border diversification grants carriers revenue insulation against domestic economic cycles. Currency fluctuations introduce pricing complexity that integrators manage through dynamic rate sheets pegged to daily FX benchmarks.
By Speed of Delivery: Express Acceleration
Express products, including same-day and next-day categories, are poised for a 5.85% CAGR between 2025-2030 as customer tolerance for multiday transit erodes. The Canada courier, express, and parcel market share attributed to non-express services remains meaningful at 72.61% but faces gradual dilution. Healthcare distributors prioritize express lanes for temperature-controlled biologics, while fashion retailers ship “drop-dead” inventory to meet flash-sale commitments.
Ground economy offerings remain staples for SMEs wary of surcharge-laden express tariffs. Nevertheless, urban drone pilots at Edmonton International Airport, logging 8,400 km of autonomous miles, expose potential unit-cost reductions that could narrow express-price premiums over time. Segment profitability depends on network velocity investments—high-speed sorters, AI-powered demand forecasting, and data-driven driver dispatch—that enable enterprises to monetize time-sensitive lanes.
By Shipment Weight: Light Parcels Lead
Light parcels under 5 kg accounted for 51.16% of shipped pieces in 2024, congruent with consumer electronics and apparel dominance. The Canada courier, express, and parcel market size for heavy-weight goods continues to climb at a 4.72% CAGR between 2025-2030 as online furniture and appliance sellers adopt scheduled white-glove services. Mid-weight segments support industrial spare-parts fulfilment and bulk office supply restocking.
Automation heightens differentiation; Amazon Robotics facilities in Calgary and London, Ontario, handle small wares at speeds impossible for manual pick-lines, sustaining light-parcel throughput efficiency. Conversely, heavy-weight shipments require lift-gate vehicles and two-person crews, incentivizing premium fee structures that offset lower stop densities. Modal preference skews to road for bulky items to contain cost per kilogram.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Road Dominance with Air Growth
Road retained 49.12% of 2024 turnover due to highway accessibility and border-crossing proximity. National Trade Corridors Fund allocations of CAD 4.4 billion (USD 3.31 billion) since inception accelerate interchange expansion and reduce dwell at key nodes like Windsor-Detroit. Air transport, advancing at a 4.40% CAGR between 2025-2030, benefits from rapid e-commerce rotation and diversification toward Asia-Pacific lanes via Vancouver International Airport’s cargo village.
Electric-vehicle trials on high-density urban loops, combined with hydrogen-fuel-cell tests for mid-long haul, may gradually alter cost hierarchies between road and rail alternatives. Environmental regulations in Québec and British Columbia incentivize modal shifts where feasible, though high-value, low-weight goods favor air despite emissions profiles.
By Model: B2C Dominance Amid C2C Growth
B2C consignments captured 58.71% of 2024 volume as national retailers enriched direct-to-home programs. Peer-to-peer markets from recommerce apps and social-commerce channels propel C2C parcels, predicted to grow at a 2.94% CAGR between 2025-2030. Carriers tailor drop-off kiosks and printable QR shipping labels to simplify household origins.
B2B utilization persists within manufacturing and wholesale, albeit at flatter growth rates as supply chains transition to consolidated truckload replenishment. Specialized white-glove crews for heavy B2C items blur lines with traditional freight brokers, presenting multichannel revenue levers. Amazon’s workforce of 46,000 Canadian employees underscores the scale required to serve end-consumer expectations for punctuality and proactive tracking.
Geography Analysis
Urban population clusters along the U.S. border constitute the gravitational center of the Canada courier, express, and parcel market. Ontario’s share is amplified by automotive and consumer goods manufacturing that requires high-velocity component flows. British Columbia’s role as a trans-Pacific portal garners elevated air-cargo activity, evident in double-digit throughput gains at Vancouver International’s cargo facilities.
Statistics Canada valued transportation and warehousing output at CAD 97.8 billion (USD 73.8 billion) in 2024, with courier services contributing measurably to GDP. The National Trade Corridors Fund finances over 140 projects, including port upgrades in Prince Rupert that shorten Asia-North America transits. However, winter road closures in prairie provinces and Atlantic storm disruptions impose contingency routing costs, reinforcing the importance of multimodal flexibility.
Infrastructure disparity between southern metropolitan centers and northern territories persists. The Trade Corridors Diversification Fund earmarks CAD 5 billion (USD 3.77 billion) for east-west rail and road connectivity, yet the backlog exceeds available grants, compelling carriers to optimize aircraft charters for Yukon and Nunavut. These areas experience higher surcharges and elongated transit windows, underscoring unequal service geography.
Competitive Landscape
Traditional integrators face structural disruption as Amazon Logistics internalizes larger slices of its parcel volume through a network exceeding 65 Canadian facilities. UPS deepens specialization via its Andlauer Healthcare Group takeover to secure regulated pharma distribution rights, enhancing differentiation versus generalist couriers. TFI International, historically Canada’s largest trucking firm, augments cross-border less-than-truckload expertise by absorbing Hercules Forwarding, revealing an ongoing consolidation trend.
Technology defines competitive moats; FedEx’s BrightDrop electric vans, autonomous routing, and AI sortation illustrate capital-intensive pivots necessary to maintain SLA leadership. Start-ups experimenting with sidewalk robots and cargo bikes chisel niche shares in hyperlocal markets but lack a national footprint. Global players such as DSV inject significant inorganic growth with the USD 15.8 billion DB Schenker acquisition, broadening multi-continent integration that benefits Canadian exporters seeking single-invoice services.
Margin pressures prompt alliances for locker network co-investment and API-based capacity interchange agreements that enable day-dated deliveries without duplicative infrastructure. Market consolidation remains moderate; the top five operators collectively account for significant share of revenue, leaving space for regional champions focused on service intensity in secondary cities.
Canada Courier, Express, And Parcel (CEP) Industry Leaders
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Canada Post Corporation (including Purolator)
-
FedEx
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United Parcel Service of America, Inc. (UPS)
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TFI International Inc.
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DHL Group
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: UPS finalized the acquisition of Andlauer Healthcare Group for CAD 2.2 billion (USD 1.65 billion), unlocking validated cold-chain capacity for biologics and high-value therapeutics.
- February 2025: Purolator purchased Livingston International, integrating customs brokerage to streamline high-growth cross-border e-commerce flows.
- January 2025: GLS signed a lease for a 150,000 ft² flagship sortation center in Vaughan, Ontario, to anchor its trans-Atlantic network rollout.
- March 2024: TFI International acquired Hercules Forwarding to reinforce cross-border less-than-truckload reach across key U.S. corridors.
Canada Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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
