Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 373.21 Billion |
| Market Size (2030) | USD 495.25 Billion |
| Growth Rate (2025 - 2030) | 5.82% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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China Full-Truck-Load (FTL) Market Analysis by Mordor Intelligence
The China full-truck-load market size is valued at USD 373.21 billion in 2025 and is projected to reach USD 495.25 billion by 2030, registering a 5.82% CAGR between 2025 and 2030. Demand strength stems from e-commerce fulfillment, infrastructure upgrades, fleet electrification and rising cross-border trade that together are reshaping competitive dynamics. Manufacturing continues to anchor volumes, while wholesale and retail trade expand fastest as omnichannel models proliferate. Digital freight platforms are lifting truck-utilization rates, and Belt & Road Initiative (BRI) corridors are broadening addressable lanes for long-haul providers. Although fragmentation keeps rates in check, policy targets to lower national logistics costs and tighter emissions standards are accelerating consolidation and asset renewal amid a generational shift toward electric heavy-duty trucks.
Key Report Takeaways
- By end user industry, manufacturing led with 44.91% of the China full-truck-load market share in 2024, whereas wholesale and retail trade is advancing at a 6.32% CAGR between 2025 and 2030.
- By destination, Domestic services accounted for 72.45% of the China full-truck-load market size in 2024; International routes record the highest projected CAGR at 5.97% for 2025-2030.
China Full-Truck-Load (FTL) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom driving trunk-haul volumes | +1.2% | Nationwide, eastern provinces focus | Short term (≤ 2 years) |
| Infrastructure upgrade of expressways and hubs | +0.8% | Nationwide, emphasis on western corridors | Medium term (2-4 years) |
| Outsourcing by manufacturers to 3PL FTL fleets | +0.7% | Yangtze River and Pearl River Deltas | Medium term (2-4 years) |
| Digital freight-matching platforms raising truck utilization | +0.6% | Nationwide, advanced regions lead | Short term (≤ 2 years) |
| Carbon-reduction KPIs favoring optimized full-truck routing | +0.4% | Nationwide, Tier-1 city priority | Medium term (2-4 years) |
| BRI border-park traffic growth (Laos, Vietnam corridors) | +0.3% | Southwest border regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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E-Commerce Boom Driving Trunk-Haul Volumes
Rapid online retail growth is swelling shipment density on trunk routes linking coastal production hubs with inland consolidation centers. The rollout of 289,000 rural delivery stations is multiplying origin points that require high-frequency line-haul services for regional sortation centers. Top platforms leverage managed-inventory models that favor contract FTL capacity, while merchants’ focus on service consistency pushes demand toward fleet operators with real-time visibility. Higher order volumes raise backhaul opportunities, improving load factors across return legs and supporting margin expansion. Paired with value-added services such as scheduled delivery windows, the shift solidifies a structural need for professionalized FTL offerings, boosting the China Full-Truck-Load market[1]“2024 Draft Plan for National Economic and Social Development,” National Development and Reform Commission, npcobserver.com.
Infrastructure Upgrade of Expressways and Hubs
Expressway reconstruction and new smart-hub programs are shrinking transit times across major corridors. Local governments deployed CNY 3.9 trillion (USD 550.09 billion) in bond funds in 2024 to accelerate 102 cluster-hub projects that feed dense hub-to-hub lanes. The Chongzuo-Pingxiang high-speed rail and the USD 10 billion Pinglu Canal both underpin multimodal flows, prompting manufacturing clients to redesign just-in-time schedules. Additional capacity alleviates congestion, cuts fuel consumption and lifts vehicle productivity, all of which elevate operator profitability and strengthen the China full-truck-load market outlook[2]“2025 H1 Heavy-Duty Truck Sales Report,” China Association of Automobile Manufacturers, caam.org.cn .
Outsourcing by Manufacturers to 3PL FTL Fleets
Greater product complexity and mounting compliance requirements are encouraging industrial shippers to convert fixed fleets into variable 3PL contracts. Fixed-asset investment in manufacturing rose 6.5% in 2024, expanding demand for specialized FTL services such as hazardous-goods transport and temperature-controlled moves. Outsourcing unlocks scale benefits in safety management, driver certification and China VI emissions compliance. It also enables cross-border coordination into ASEAN via RCEP privileges, letting integrated providers orchestrate multimodal handoffs more smoothly than in-house fleets.
Digital Freight-Matching Platforms Raising Truck Utilization
AI-driven platforms like Full Truck Alliance integrate 5G and BeiDou telematics to cut empty-mile ratios and offer dynamic pricing. Standardized e-documentation streamlines booking and settlement, reducing shipper transaction costs and shortening payment cycles for drivers. Clustering dense pools of verified capacity makes it easier for large shippers to secure surge volumes without relying on intermediaries. This efficiency unlocks latent capacity, widens geographic reach for small carriers and strengthens the China Full-Truck-Load market demand curve.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fragmented capacity keeping freight rates depressed | -0.9% | Nationwide, secondary cities severe | Long term (≥ 4 years) |
| Volatile diesel pricing and fuel-cost pass-through limits | -0.5% | Nationwide, long-haul routes acute | Short term (≤ 2 years) |
| Strict HOS enforcement creating long-haul driver scarcity | -0.4% | Nationwide, intercity impacts | Medium term (2-4 years) |
| Low-emission-zone bans on diesel trucks in Tier-1 cities | -0.3% | Beijing, Shanghai, Guangzhou, Shenzhen | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fragmented Capacity Keeping Freight Rates Depressed
More than 17 million drivers operate largely as single-truck businesses, diluting bargaining power and undercutting rates to win spot loads. Surveys show 30% work over 12 hours daily and 86.5% suffer work-related illness, amplifying turnover risk. Payment delays and occasional fraud further squeeze cash flow. Government roll-outs of “Driver Home” rest areas and credit ledger systems aim to stabilize welfare and weed out non-compliant actors. Yet near-term oversupply sustains rate pressure and tempers profitability for the China Full-Truck-Load market[3]“Notice on Improving Parking and Rest Facilities for Truck Drivers,” Ministry of Transport, waizi.org.cn .
Volatile Diesel Pricing and Fuel-Cost Pass-Through Limits
June 2024 diesel demand dropped 11% year-over-year as operators chased LNG trucks, which now account for 20% of new heavy-duty sales. Fluctuating pump prices complicate tariff quotes, while fragmented carriers struggle to impose fuel surcharges on price-sensitive shippers. Electric truck adoption partly cushions volatility but requires steep upfront capital and route re-engineering. Cross-border hauls add further complexity through uneven taxation and foreign currency swings that can erode margins quickly[4]“China Raises Maximum Age for Truck Drivers,” State Council News Service, www.gov.cn.
Segment Analysis
By End User Industry: Manufacturing Dominance Drives Consolidation
Manufacturing held a 44.91% China full-truck-load market share in 2024 and continues to dictate route density and equipment specification needs. Outsourcing momentum strengthens as industrial firms replace in-house fleets with contractual 3PL agreements that embed compliance and China VI maintenance regimes. Sectoral investment growth of 6.5% in 2024 signals durable demand for just-in-time inbound and outbound moves. Specialized sub-segments such as chemicals, project logistics and temperature-controlled goods require dedicated rigs and certified drivers, prompting consolidation among carriers able to spread asset costs across multiple plants.
The China Full-Truck-Load market size attached to manufacturing shipments is set to expand steadily through 2030 as suppliers deepen integration with ASEAN plants through multimodal nodes. Meanwhile, the wholesale and retail trade lane grows fastest at a 6.32% CAGR between 2025 and 2030, catalyzed by omnichannel store replenishment and rural station backhauls. Agriculture, fishing and forestry volumes rise on improved cold-chain penetration along the China-Laos rail corridor. Construction, despite cyclical shifts, maintains baseline demand linked to the nation’s vast expressway and hub pipeline, providing steady freight tonnage for bulk and palletized loads.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Routes Benefit from Infrastructure Investment
The Domestic category captured 72.45% of the China full-truck-load market size in 2024, underpinned by dense highway grids and shared regulatory standards. Expressway renovations and 102 city-cluster hubs shorten staging distances, enabling carriers to raise daily kilometers while cutting idle dwell time. Digital platforms flourish on these lanes because predictable shipper patterns feed algorithmic load matching that boosts utilization. Government targets to trim logistics costs to 13.5% of GDP by 2027 further enhance competitiveness through toll discounts and streamlined weigh-station checks.
International FTL corridors, though smaller, enjoy a 5.97% forecast CAGR between 2025 and 2030. The China-Vietnam direct road link that saves one transit day and CNY 1,000 per truck illustrates latent upside when border formalities simplify. The China-Laos Railway’s 18 daily freight trains extend intermodal reach for motor carriers that provide first-mile plant pickups and final-mile ASEAN deliveries. Currency swings and diverging emission rules remain challenges, yet shippers still embrace higher-priced cross-border FTL contracts for their control, flexibility and lead-time advantages.
Note: Segment shares of all individual segments available upon report purchase
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Geography Analysis
Domestic provincial corridors dominate China full-truck-load market flows thanks to matured highway density and single-regime oversight. Coastal production clusters feed central and western consumption zones over corridor pairs such as Yangtze River Delta to Chengdu–Chongqing, each benefiting from continuous six-lane expressway renovations. Ongoing expansion of 8.596 million charging points magnifies electric truck feasibility on fixed domestic loops, allowing carriers to amortize battery costs over predictable mileage.
Western China gains strategic weight as CNY 3.9 trillion (USD 550.09 billion) in bond-financed projects accelerate hub development in Chengdu, Xi’an and Urumqi. These hubs link domestic lanes with Eurasian rail and Central Asia tanker corridors, creating hub-and-spoke lanes ideal for full-truck consolidations that bypass congested coastal gateways. The western focus is set to tighten east-to-west backhauls, lifting balanced-lane revenues across the China Full-Truck-Load market.
Cross-border lanes into ASEAN feature leaner infrastructure but outsized growth potential. The Guangxi-based Chongzuo-Pingxiang high-speed rail and the Pinglu Canal will channel bulk commodities toward Beibu Gulf ports by 2026, encouraging carriers to stage trucks for water-borne transloading. Southwest corridors also enjoy upgraded customs e-preclearance that trims documentation time, enhancing equipment rotation. While compliance and fuel-cost asymmetry persist, the margin premium obtainable on these lanes outweighs risks for tech-enabled fleets capable of real-time visibility and multilingual support.
Competitive Landscape
The China full-truck-load market remains highly fragmented, with more than 17 million drivers mostly owning one or two trucks, yielding severe price rivalry. Technology platforms have emerged as consolidation catalysts; Full Truck Alliance records millions of daily load postings that pool spot demand and normalize transparent bidding. Peer platforms such as Logory Logistics are adopting AI pricing tools that reward on-time history and emissions compliance, nudging quality carriers upward.
Incumbent integrators respond through mergers and digital upgrades. JD Logistics’ USD 892 million Kuayue-Express acquisition amplifies final-mile density and feeds trunk FTL lanes using shared control towers. SF Express launched its Smart Logistics Platform 3.0 in February 2025, inserting AI-based route optimization across FTL moves and linking them to its express parcel network for load pooling efficiencies. Global operators are also scaling western presence; DHL earmarked USD 150 million for Chengdu and Xi’an hubs that come equipped with EV chargers and automated sortation lines.
A parallel competitive lever is fleet electrification. Heavy-duty EV sales reaching 22% share in H1 2025 show early adopters winning low-emission zone access, which commands higher yields from urban shippers. Yet capital hurdles and grid reliability limit smaller carriers, reinforcing a two-tier structure. As regulators advance unified credit scoring and stiffer safety audits, the compliance burden will likely force sub-scale operators either to pool under network brands or to exit, steering the China Full-Truck-Load market toward moderate consolidation.
China Full-Truck-Load (FTL) Industry Leaders
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Deppon Logistics Co., Ltd.
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SF Express (KEX-SF)
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SINOTRANS
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JD Logistics
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SAIC Anji Logistics (SAIC Motor Corp.)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- February 2025: SF Express rolled out Smart Logistics Platform 3.0, embedding AI route optimization and real-time cargo tracking for FTL shipments.
- January 2025: DHL Group confirmed a USD 150 million expansion of its China network, adding Chengdu and Xi’an distribution centers with EV charging infrastructure and automated sorting.
- December 2024: JD Logistics completed its USD 892 million acquisition of Kuayue-Express, enlarging its last-mile footprint and trunk-line synergies.
- May 2024: SINOTRANS partnered with China-Europe Railway Express to integrate FTL services with rail moves for cross-border clients.
China Full-Truck-Load (FTL) Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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