Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 99.56 Billion |
| Market Size (2030) | USD 137.95 Billion |
| Growth Rate (2025 - 2030) | 6.74% 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 Less Than-Truck-Load (LTL) Market Analysis by Mordor Intelligence
The China less than-truck-load (LTL) market size stands at USD 99.56 billion in 2025 and is projected to reach USD 137.95 billion by 2030, reflecting a 6.74% CAGR between 2025-2030. This market size expansion is propelled by e-commerce parcelization, the reshoring of manufacturing to inland provinces, and government highway modernization. Intensifying competition from express carriers moving into heavy freight, a rapid shift toward LNG-powered trucks, and fast progress in autonomous driving also fuel growth. Supply chain diversification away from coastal hubs has rerouted volumes toward domestic consolidation centers, while Belt and Road investments keep cross-border prospects alive. Operators that integrate AI-enabled route planning and drop-and-pull trailer models are seeing better asset utilization despite driver shortages and urban weight limits.
Key Report Takeaways
- By end user industry, manufacturing held a 38.77% China less than-truck-load (LTL) market share in 2024, whereas wholesale and retail trade is set to expand at an 8.49% CAGR between 2025-2030.
- By destination, domestic services commanded 78.99% of the China less than-truck-load (LTL) market size in 2024, while the international segment is advancing at a 6.99% CAGR between 2025-2030.
China Less Than-Truck-Load (LTL) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce parcelization boom | +1.2% | Tier 1–2 cities nationwide | Short term (≤ 2 years) |
| Manufacturing reshoring inland | +0.9% | Central and Western China | Medium term (2-4 years) |
| Government drop-and-pull push | +0.7% | National corridors | Medium term (2-4 years) |
| Diesel-to-NG truck cost edge | +0.8% | Hebei, Shanxi, Shandong, Henan | Short term (≤ 2 years) |
| AI-optimized line-haul routing | +0.5% | Major logistics networks | Long term (≥ 4 years) |
| Cold-chain rise in perishables | +0.6% | Rural–urban corridors | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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E-commerce Parcelization Boom Drives Consolidation Innovation
Rising online spending is splintering bulk freight into small, frequent consignments that demand sophisticated sortation and consolidation. The December 2024 rule that removed overseas warehouse filing and simplified export documents trimmed paperwork for cross-border sellers[1]郑州威驰外资企业服务中心, “海关总署关于进一步促进跨境电商出口发展的公告,” waizi.org.cn. Twelve customs zones now run “inspect before consolidation” pilots, so operators can rearrange loads after clearance, boosting fill rates on trunk routes. Tier 1 hubs deploy high-speed automated sorters to cope with daily volume spikes, and cloud dashboards help fleets reroute around urban time-window bans. The China less than-truck-load (LTL) market is responding by shifting from fixed milk runs to demand-responsive grids that can pool parcels from multiple platforms. Carriers with real-time visibility and dynamic rating engines convert the parcel surge into a stable yield despite shorter average shipment weights.
Manufacturing Supply-Chain Reshoring Accelerates Inland Corridor Development
Industrial relocation toward Sichuan, Chongqing, and Henan has redrawn freight flows once concentrated on the Pearl and Yangtze deltas. Government incentives on land, tax, and utilities lower total landed cost for factories venturing inland, yet finished goods must still reach coastal consumption hotspots. New hub-and-spoke networks link inland industrial parks to mega-warehouses around Shanghai, Guangzhou, and Beijing, trimming dead-head mileage. Carriers that pre-position terminals near these clusters gain early mover advantages as volumes scale. The China less than-truck-load (LTL) market benefits from lean inventory models that call for more frequent but lighter loads to balance cost and service. Corridor build-out timelines will decide which interior cities graduate into national consolidation nodes.
Government Push for Drop-and-Pull Trailer Operations Enhances Asset Utilization
The 2024 equipment renewal program grants purchase rebates on standardized trailers fitted for drop-and-pull coupling. By separating tractors from trailers, fleets keep trailers moving while drivers rest, raising daily kilometers without breaching hours-of-service rules. LTL depots can preload trailers for night pickup, smoothing dock congestion and aligning departures with city access windows. Early adopters report double-digit cuts in tractor idle time and lower per-trip labor costs. Success hinges on yard layout upgrades, digital slot booking, and interoperable coupler specs so that trailers flow seamlessly across carriers. The China less than-truck-load (LTL) market sees this model as a hedge against chronic driver scarcity.
Diesel-to-NG Truck Cost Advantage Transforms Long-Haul Economics
LNG tractor sales hit one-third of heavy-duty registrations by April 2024, shaving a typical CNY 71.04 (USD 10.02) per 100 km fuel bill versus diesel[2]Sunny Fang, “Surging heavy-duty LNG truck sales boost LNG consumption in China,” mysteel.net. Resource-rich northern provinces cluster fueling stations, letting carriers run high-volume loops on single-fuel architecture. Operators lock in multi-year gas supply contracts to mute price volatility and integrate station data into route planners to avoid detours. Capex is recouped in under two years on trunk lanes exceeding 600 km per day. The China less than-truck-load (LTL) market leverages these savings to offer rate discounts while protecting margin, although limited LNG coverage in southwest corridors still forces dual-fuel contingencies.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver shortages and aging workforce | −0.8% | Nationwide, acute in Tier 1 cities | Long term (≥ 4 years) |
| Urban bans on ≥ 4.5-ton trucks | −0.6% | Major metros, spreading to Tier 2 cities | Medium term (2-4 years) |
| High road tolls versus rail | −0.4% | National trunk lanes | Medium term (2-4 years) |
| Fragmented consignee address data | −0.3% | Rural, suburban zones | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Persistent Driver Shortages Constrain Network Expansion
Revised safety rules in December 2024 raised training hours and tightened medical checks, causing a temporary dip in licensed drivers[3]刘畅, “国务院关于修改《快递暂行条例》的决定,” gov.cn. The median driver age now tops 45, and young recruits gravitate toward urban platform gigs. Wage inflation exceeds 9% annually, nudging fleets to trial remote-monitoring cockpits and platooning. Autonomous pilots by ZTO and YTO cover fixed expressways but still need safety stewards, so human demand only eases gradually. Terminal throughput suffers when loads miss dispatch windows because substitute drivers are unavailable. The China less than-truck-load (LTL) market invests in academy pipelines and dormitory upgrades to retain crews.
City-Level Access Restrictions Fragment Last-Mile Networks
Beijing’s March 2025 ordinance bars trucks over 4.5 tons from inner-ring roads during daylight, mirroring prior moves in Shanghai and Shenzhen. Fleets now cross-dock into 3.5-ton vans at peri-urban transfer hubs, adding handling steps and land rent. Routing software must juggle municipal-specific permits and night curfews, complicating network design. Smaller shipments raise per-stop cost while customer expectations for rapid delivery tighten. Carriers with micro-hubs inside ring roads maintain service levels, but capex burdens squeeze thin-margin operators. The China less than-truck-load (LTL) market thus faces rising last-mile complexity that could erode national-scale synergies.
Segment Analysis
By End User Industry: Manufacturing Anchors Growth Amid Retail Acceleration
Manufacturing contributed 38.77% of China less than-truck-load (LTL) market share in 2024 and continues to generate steady base loads between plants, parts suppliers, and distribution centers. Frequent shipments of components support lean inventories, so LTL lanes see high schedule stability and pallet density. Meanwhile, the wholesale and retail trade segment is growing at an 8.49% CAGR between 2025-2030, fueled by e-commerce demand for high-frequency restocks to neighborhood depots. This divergence lets carriers balance weekday manufacturing spikes with weekend retail peaks, smoothing asset utilization.
The agriculture, fishing, and forestry segment gains from expanded cold-chain corridors, sending temperature-sensitive cargo into megacities. Construction materials ride LTL legs into urban redevelopment sites that prohibit heavy rigs during peak hours, favoring smaller trucks in feeder loops. Oil and gas, mining, and quarrying provide counter-cyclical freight, supplying oversized parts and consumables to remote projects when commodity prices support investment. Together, these verticals widen the China less-than-truckload (LTL) market base and limit reliance on any single sector.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance Faces International Disruption
Domestic routes controlled 78.99% of the China less than-truck-load (LTL) market size in 2024, underpinned by a 5.8 million-km national highway grid and dense city clusters. Consignee networks in the Yangtze River Delta, Pearl River Delta, and Jing-Jin-Ji megalopolis anchor high-volume loops, supporting nightly line-haul departures. Manufacturing’s inland shift adds west-to-east lanes, prompting carriers to open Xi’an and Chengdu hubs for cross-dock relay.
The international segment, while smaller, is advancing at a 6.99% CAGR between 2025-2030 thanks to Belt and Road corridor build-outs. Russian transit curbs in October 2024 forced traffic onto the Middle Corridor via Kazakhstan, the Caspian Sea, and Turkey, extending China-to-Germany rail transit to 18-22 days. Operators layer sea-rail-truck interlining to keep service predictable and price competitive. Cross-border e-commerce rules that simplify export declarations further attract parcel flows to bonded warehouses near Alashankou and Khorgos. Over time, multimodal agility will decide winners as geopolitical shocks periodically redraw preferred lanes.
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Geography Analysis
China’s domestic LTL landscape reflects unmatched scale and diversity. The eastern seaboard still drives volume, but inland provinces now post double-digit shipment growth as industrial parks proliferate. Government toll differentials in November 2024 shaved 10% off fees for compliant drop-and-pull rigs on eight pilot expressways, lowering cost per ton-km. LNG corridors in Hebei, Shandong, and Henan anchor low-fuel-cost loops, letting fleets quote leaner rates into Beijing and Tianjin.
Central provinces such as Hubei and Anhui leverage multimodal river-rail hubs to decongest highways, enabling carriers to transload pallets onto barges for coastal ports. Southwestern lanes into Chongqing and Guizhou remain constrained by mountainous topography, but ongoing freeway links and LNG station rollouts promise relief by 2027. In the northeast, Liaoning’s heavy-industry rebound lifts outbound component traffic, partially offsetting population decline that once dampened freight.
Cross-border, the Middle Corridor’s rise reroutes westbound freight through Khorgos rail dry port, onto Caspian ferries, and along Turkish rail to Europe. Although transit is slower than the now-restricted route via Russia, political neutrality attracts shippers of dual-use goods. Southern maritime options through Shenzhen port bundle LTL consolidations into weekly Far East-Europe feeders, hedging rail disruptions. Capacity expansions at Gwadar and Hambantota under the Belt and Road Initiative add future flexibility for China less than-truck-load (LTL) market operators seeking diversified gateways.
Competitive Landscape
Competition is fragmented. The top five carriers, led by SF Express, JD Logistics, ZTO Express, YTO Express, and STO Express, accounted for a significant share of 2024 domestic LTL revenue. Their express parcel heritage provides dense networks and IT infrastructure that speed LTL scale-up. JD’s USD 892 million purchase of Kuayue Express in December 2024 extended cross-border reach and European warehousing[4]Emerald Insight, “JD Logistics acquires Kuayue Express,” emerald.com.
Technology arms races define strategy. ZTO and YTO each deployed more than 300 autonomous trucks on fixed intercity lanes in 2024, offsetting driver shortages and shaving fuel with optimized cruise control. AI engines mine telematics for dynamic route re-sequencing, cutting empty kilometers by 7-9%. Smaller regionals adopt shared digital freight platforms to pool loads and secure backhauls they cannot source alone.
Global consolidation also impacts China less than-truck-load (LTL) market operators. DSV’s April 2025 acquisition of DB Schenker created the world’s largest freight forwarder, strengthening its air-sea contracts leveraged for Asia-Europe LTL bundling. Domestic carriers partner with this giant to gain access to European warehouses while guarding data on mainland customer lanes. Compliance mandates on recyclable packaging effective June 2025 raise operating thresholds that may push subscale fleets toward mergers or exit.
China Less Than-Truck-Load (LTL) Industry Leaders
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SF Express (KEX-SF)
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Deppon Logistics Co., Ltd.
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ZTO Express
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JD Logistics
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Yimi Dida Supply Chain Group Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- July 2025: STO Express entered a strategic alliance with Cainiao to deploy 2,000 autonomous vans for last-mile parcel delivery inside restricted urban zones.
- January 2025: DHL Express and Temu formed a partnership to supply cross-border e-commerce shipping from China to key export destinations, combining DHL’s global network with Temu’s seller base.
- December 2024: JD Logistics completed its USD 892 million acquisition of Kuayue Express to integrate domestic LTL consolidation with overseas warehousing.
- August 2024: ZTO Express teamed with Inceptio Technology to roll out 400 autonomous heavy-duty trucks on intercity lines, marking China’s largest driverless freight deployment.
China Less Than-Truck-Load (LTL) 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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