Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 131.84 Billion |
| Market Size (2030) | USD 201.81 Billion |
| Growth Rate (2025 - 2030) | 7.21% 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. |
|
China Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The China courier express and parcel market size stood at USD 131.84 billion in 2025 and is projected to reach USD 201.81 billion by 2030, reflecting a 7.21% CAGR between 2025-2030. Robust e-commerce penetration, surging live-stream retail transactions, and fast-improving cross-border rail corridors continue to define demand patterns for the China courier express and parcel market. Steady policy support for universal village-level coverage, tax incentives for logistics technology, and mandatory green-packaging rules are prompting providers to expand networks while upgrading automation. Technology-led route optimization, autonomous vehicles, and blockchain-verified customs clearance are emerging as productivity engines, especially for premium, time-definite offerings. At the same time, price rivalry among private networks and courier wage inflation compress margins, incentivizing consolidation and diversified services within the China courier express and parcel market.
Key Report Takeaways
- By destination, domestic shipments led with 65.15% of the China courier express and parcel market share in 2024; international flows are set to rise at a 7.47% CAGR between 2025-2030.
- By speed of delivery, non-express captured 51.50% share of the China courier express and parcel market size in 2024, while express services are set to advance at a 7.58% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) accounted for 51.63% share of the revenue in 2024, and consumer-to-consumer (C2C) is set to expand at a 5.39% CAGR between 2025-2030.
- By shipment weight, light-weight parcels commanded 59.76% of the China courier express and parcel market share in 2024; heavy-weight consignments are set to grow at a 6.21% CAGR between 2025-2030.
- By mode of transport, road services held a 48.87% share in 2024, whereas air transport is set to grow at a 6.12% CAGR between 2025-2030.
- By end-user, e-commerce generated 35.71% of 2024 revenue, and healthcare logistics is forecast to post a 7.57% CAGR between 2025-2030
China Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce and live-stream retail | +1.2% | Tier-1 hubs and Yangtze River Delta | Short term (≤ 2 years) |
| Rural “express-to-villages” rollout | +1.8% | Western and central provinces | Medium term (2-4 years) |
| Cross-border e-commerce to ASEAN and EU | +0.9% | Coastal export zones | Medium term (2-4 years) |
| Logistics cost-reduction plan | +1.1% | National economic zones | Long term (≥ 4 years) |
| AI-driven route optimization | +0.7% | Major urban nodes | Short term (≤ 2 years) |
| Inland multimodal rail corridors | +0.4% | Central-western China | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Explosive E-Commerce and Live-Stream Retail Boom
Live-stream shopping sales reached RMB 5.3 trillion (USD 747.55 billion) in 2024, compelling parcel networks to guarantee same-day or next-day delivery across 95% of tier-1 and tier-2 cities[1]China Internet Network Information Center, “China Internet Development Statistics 2024,” cnnic.net.cn. Micro-fulfillment centers close to dense urban catchments shorten last-mile distances, while AI demand-sensing smooths peak volatility. International tie-ups—such as Temu’s April 2025 deal with DHL—extend China's courier express and parcel market reach into overseas customer bases. As social commerce compresses purchase cycles, networks must flex between small, variable order clusters and bulk flash-sale spikes without service degradation. Integrated video-commerce platforms are therefore a pivotal volume engine for the China courier express and parcel market.
Rural “Express to Villages” Network Build-Out
By 2024, every administrative village had basic courier coverage, unlocking new revenue channels for agricultural produce and consumer staples[2]Ministry of Commerce, “Rural E-Commerce Development Statistics 2024,” mofcom.gov.cn. Rural digital-payment adoption reached 85%, enabling seamless order-to-delivery workflows even in remote counties. Solar-powered depots, drone demonstration routes, and mobile collection vans tailor operations to geographies with patchy grid access or difficult terrain. As cold-chain nodes proliferate, perishable farm goods now bypass intermediaries, generating two-way traffic that lowers backhaul empty-run rates. The initiative strengthens national consumption parity and deepens the addressable base for the China courier express and parcel market.
Cross-Border E-Commerce Expansion to ASEAN and EU
Multimodal China-Europe Railway Express services covering 222 cities have cut door-to-door lead times by up to 50% on select lanes compared with sea freight and at 59% lower cost than air for many product classes[3]China Railway Corporation, “China-Europe Railway Express Network Development,” cr.cn. Chongqing’s ASEAN Express, launched in October 2024, delivers in under seven days to key Southeast Asian metros. Changes to U.S. de minimis thresholds in mid-2025 are prompting routing shifts toward EU and ASEAN destinations, reinforcing demand for alternative corridors. Expanded overseas warehouses and Cainiao’s UPU Gold status improve local fulfillment options, accelerating customs-cleared delivery in end markets. These developments extend the competitive edge of the China courier express and parcel market beyond domestic boundaries.
Government Logistics-Cost-Reduction Action Plan
The State Council’s program harmonizes packaging standards, offers 15% corporate tax rates for high-tech logistics firms, and mandates AI benchmark deployments across all major CEP networks[4]Ministry of Finance, “High-Tech Enterprise Tax Policy 2024,” mof.gov.cn. Smart Customs pilots in 136 scenarios—including Tianjin Xingang—have slashed clearance times by 67%, adding velocity to cross-border parcel flows. Unified data formats and interoperable tracking boost multi-carrier visibility, letting shippers price-compare in real time and select optimal service tiers. Capital-intensive providers that comply early gain scale advantages, reinforcing transition barriers. Over the long term, standardized nationwide processes raise the structural efficiency of the China courier express and parcel market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Courier wage inflation and turnover | -0.8% | Tier-1 cities | Short term (≤ 2 years) |
| Price wars among private networks | -0.6% | Tier-2 and tier-3 cities | Medium term (2-4 years) |
| Mandatory green-packaging costs | -0.5% | Nationwide | Medium term (2-4 years) |
| Inner-city traffic and emission curbs | -0.4% | Major metros | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Courier Wage Inflation and High Staff Turnover
Average courier wages climbed 14% year-on-year in 2024 as tighter labor codes instituted doorstep delivery guarantees and compulsory insurance cover. High churn—approaching 25% in peak quarters—raises recruitment and training outlays, weighing on EBITDA margins. Larger players counter with automated sorting hubs and driverless truck pilots; ZTO Express’s 400-unit autonomous fleet cuts night-shift headcount needs on trunk lanes. Retention schemes offering skill-upgrade pathways and performance bonuses are becoming table stakes, yet wage escalation remains a material drag on near-term profitability across the China courier express and parcel market.
Price Wars Among Private Networks
Volume-grab discounting lowered average tariff rates by 6-8% in select tier-3 cities during 2024, driving smaller operators into insolvency and prompting official crackdowns in Guangdong and Zhejiang in August 2025. With commoditized basic delivery, differentiation pivots to guaranteed time slots, IoT-enabled asset monitoring, and specialized cold-chain lanes. Margin protection is further sought via cluster consolidation: SF Express’s HKD 5.83 billion (USD 746.58 million) IPO in 2024 partly targeted strategic acquisitions. Sustained price compression nonetheless limits reinvestment capacity for mid-tier firms, dampening the overall growth potential of the China courier express and parcel market.
Segment Analysis
By End User Industry: E-Commerce Dominance Meets Healthcare Momentum
E-commerce merchants generated 35.71% of 2024 parcel inflows, a testament to deep digital penetration and friction-free checkout ecosystems. Meanwhile, healthcare consignments chart a 7.57% CAGR between 2025-2030 as prescription platforms, biotech exports, and vaccine rollouts demand verified cold-chain stewardship. The China courier express and parcel market size for pharmaceutical lanes gains from GDP-compliant packaging and GPS-temp sensors.
Manufacturing and retail segments rely on CEP backbones for parts replenishment and store restocking, respectively, anchoring weekday baseline volumes. Financial-services mailings—though slim in tonnage—command premium pricing for secure, time-bound delivery. Primary industries tap village express nodes to dispatch soil samples or receive machinery spares, underlining network relevance beyond urban commerce.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Cross-Border Momentum Challenges Domestic Dominance
Domestic flows preserved commanding weight with a 65.15% stake in 2024, buoyed by a mature e-commerce framework that handled 174.5 billion consignments. The China courier express and parcel market size for domestic traffic benefited from scale efficiencies, village-level coverage, and standardized sorting. Growth is moderating, yet incremental volumes still arise from agriculture-linked parcels and government service mailings. Providers deepen penetration by installing micro-depots in county seats and offering reverse logistics for returns, thus reinforcing rural-urban flows.
International parcels, though smaller, are rising at a 7.47% CAGR between 2025-2030, propelled by ASEAN and EU demand corridors. Policy-facilitated multimodal links and warehouse footprints abroad shorten delivery cycles, enhancing competitiveness for China-origin merchants. The China courier express and parcel market share of cross-border consignments should therefore inch upward despite headwinds such as U.S. de minimis reforms. Operators hedge exposure by diversifying lane portfolios and bundling customs brokerage into turnkey offerings, signaling a gradual realignment of network priorities.
By Speed of Delivery: Express Services Gain Premium Traction
Non-express options accounted for 51.50% of 2024 revenue, appealing to price-sensitive merchants shipping bulk or low-value goods. Yet express products recorded a 7.58% CAGR expansion trajectory between 2025-2030, supported by AI-enabled routing and city-wide locker grids that compress lead times. The China courier express and parcel market size for express consignments increasingly captures discretionary spend from consumers valuing shipment certainty.
As same-day windows become mainstream in tier-1 agglomerations, providers monetize premium tiers through value-added guarantees and insurance. Autonomous light-truck pilots and robotic depots elevate express throughput while tempering labor intensity. Meanwhile, non-express segments face mounting expectations for better traceability, pushing incumbents to upgrade digital tools or risk share attrition within the China courier express and parcel market.
By Shipment Weight: Light Parcels Dominate While Heavy Freight Accelerates
Lightweight parcels held a 59.76% slice of 2024 revenue, reflecting consumer electronics, apparel, and beauty staples. Automated tilt-tray sorters optimize handling, driving cost per piece below rivals in the China courier express and parcel market. Heavyweight parcels, albeit smaller, chart a 6.21% CAGR between 2025-2030 as online buyers shift toward furniture and large appliances.
AI-driven load planners raise vehicle cube utilization, making heavyweight shipping economically viable over medium distances. Networks also pilot pallet-level IoT sensors to assure cargo integrity, strengthening trust among B2B shippers. Medium-weight traffic stays vital as a balancing layer, smoothing network density and enabling fleet right-sizing across diverse lanes.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Networks Lead as Air Cargo Ramps Up
Road transport contributed 48.87% of 2024 parcel revenue on the back of China’s 169,000-km expressway grid that underpins last-mile flexibility. Nevertheless, air transport parcels are on a 6.12% CAGR between 2025-2030 as next-day guarantees for cross-border and high-value goods accelerate demand. The China courier express and parcel industry is witnessing carriers buy or lease dedicated freighters, while belly-hold agreements with passenger airlines add surge capacity during festival peaks.
Rail as a middle-ground alternative strengthens trunk routes between inland hubs and coastal gateways. Predictive scheduling engines assessing rail-air-road trade-offs give operators new pricing levers and carbon dashboards to satisfy shipper ESG goals. Hybrid configurations, therefore, enhance modal agility and throughput resilience across the China courier express and parcel market.
By Model: B2C Supremacy Faces C2C Platform Surge
Business-to-consumer (B2C) streams retained 51.63% of turnover in 2024 thanks to entrenched links with marketplace giants. Tight platform-integrated data flows facilitate zero-touch label generation, reducing friction across the China courier express and parcel market. Yet social-commerce evolution and peer-to-peer resales have catalyzed a 5.39% CAGR between 2025-2030 for consumer-to-consumer (C2C) parcels, challenging incumbents to design nimble pick-up services and micro-insurance add-ons.
Hybrid commerce—where influencers ship direct from studio warehouses—blurs historical segment delineations. CEP firms now embed software plug-ins within live-stream apps, enabling on-air fulfillment and bolstering retention. Business-to-business parcels remain a niche but strategically vital avenue, supplying industrial spare parts and intra-factory replenishment that demand just-in-time precision.
Geography Analysis
Coastal provinces—Guangdong, Zhejiang, Jiangsu, and Shanghai—remain parcel powerhouses thanks to dense populations, export-oriented factories, and high per-capita online spending. Daily order volumes exceed 30 million in the Yangtze Delta alone, fostering intricate last-mile ecosystems. Tier-2 metros such as Chengdu, Wuhan, and Chongqing post double-digit parcel growth as disposable incomes rise and high-speed rail cargo lanes shorten inland-coast gaps. The China courier express and parcel market benefits from these secondary city dynamics by broadening the geo-spread of order origination.
Rural western and central provinces witness uptake following “express-to-villages” fulfillment, with parcel points integrated into local convenience stores. Infrastructure upgrades—including 5G coverage and smart lockers—reduce collection friction, amplifying order frequency. Cross-border nodes like Xi’an and Zhengzhou leverage China-Europe Railway Express services to pivot from domestic to international hub status, moving semi-finished goods and e-commerce bundles toward Europe within 12-15 days. Such inland corridors diversify risk, easing congestion at coastal ports while boosting resilience across the China courier express and parcel industry.
Megacities impose stepped traffic and emissions constraints, pushing operators toward electric vehicles and multi-story urban warehouses. Digital twin simulations guide land-scarce networks on depot siting and locker clustering, ensuring service-level compliance amid regulatory flux. National AI investment funds earmark logistics tech pilots in Urumqi, Lanzhou, and Nanning, accelerating smart-hub diffusion across latitudinal belts. Cumulatively, geography-specific investments sustain balanced expansion in the China courier express and parcel market.
Competitive Landscape
The China courier express and parcel market signals moderate consolidation. Each player allocates multi-billion-renminbi budgets to automation; ZTO’s driverless fleet and SF’s smart-warehouse grid exemplify capital intensity. Autonomous sidewalk bots, AI sorting arms, and blockchain parcel passports differentiate service quality, mitigating price-only competition.
Regional specialists still thrive by serving niche demands such as hazardous chemicals or mega-item furniture, but escalating compliance and tech costs accelerate consolidation. STO’s July 2025 pact with Cainiao to field 2,000 autonomous vans illustrates scale-seeking synergies. Overseas capacity build-outs—China Post’s new Guangzhou-Luxembourg lanes—position incumbents to absorb cross-border volume swings. Overall, the China courier express and parcel market trends toward tech-centric rivalry backed by strong balance sheets.
White-space prospects include healthcare cold-chain, rural cargo pooling, and carbon-neutral delivery tiers. Early movers securing certifications and green-tech patents will define tomorrow’s profit pools. As GB 43352-2023 pushes eco-packaging parity, large carriers exploit supplier bargaining power to control cost creep. Therefore, competitive trajectories hinge on simultaneous mastery of digital, environmental, and network-density levers within the China courier express and parcel industry.
China Courier, Express, And Parcel (CEP) Industry Leaders
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ZTO Express
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YTO Express
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Yunda Holdings
-
SF Holding
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STO Express
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- July 2025: STO Express announced a Cainiao alliance to integrate 2,000 autonomous vans for last-mile distribution.
- July 2025: China Post inaugurated Guangzhou, Nanjing, and Zhengzhou intercontinental routes to Luxembourg, boosting outbound capacity to Europe.
- April 2025: DHL Express teamed with Temu to extend cross-border delivery services from China to global buyers.
- August 2024: ZTO Express and Inceptio Technology deployed 400 autonomous heavy-duty trucks on trunk lanes, marking China’s largest commercial driverless freight rollout.
China 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.
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 |
| 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 |
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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. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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