Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 32.99 Billion |
| Market Size (2030) | USD 49.08 Billion |
| Growth Rate (2025 - 2030) | 8.27% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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China Same Day Delivery Market Analysis by Mordor Intelligence
The China same day delivery market size is USD 32.99 billion in 2025 and is forecast to reach USD 49.08 billion by 2030, expanding at an 8.27% CAGR over 2025-2030. Robust urbanization, heavy digital-infrastructure spending, and consumer expectations for near-instant gratification are accelerating adoption curves, forcing legacy overnight operators to redesign their economics around two-hour fulfillment windows. O2O instant-retail ecosystems, front-warehouse micro-fulfillment sites, and AI-enabled dispatch engines are collectively compressing lead times while improving inventory turns. The pivot is opening margin opportunities in premium service tiers, such as cross-border electronics deliveries that justify higher tariffs. At the same time, labor-protection rules enacted in March 2024 require social-insurance coverage for riders, pushing operators to automate sorting, routing, and even final-mile hand-off tasks to contain costs.
Key Report Takeaways
- By mode of transport, road networks led with a 50.99% of the China same day delivery market share in 2024; air transport is projected to post an 8.35% CAGR between 2025-2030.
- By shipment weight, light-weight parcels accounted for 76.64% of the China same day delivery market size in 2024, while medium-weight parcels are advancing at a 7.85% CAGR between 2025-2030.
- By destination, domestic services held 68.69% of the revenue share in 2024, but international same-day lanes are forecast to grow at an 8.45% CAGR over 2025-2030.
- By end-user industry, e-commerce captured 53.49% revenue share in 2024, whereas wholesale and retail trade (offline) is rising fastest at 8.52% CAGR between 2025-2030.
China Same Day Delivery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Expansion of O2O instant-retail platforms | +1.8% | Tier-1 cities spilling into Tier-2 | Short term (≤ 2 years) |
| Rapid growth of front-warehouse micro-fulfillment networks | +1.5% | Major metros to provincial capitals | Medium term (2-4 years) |
| Rising urban demand for fresh grocery and prepared meals | +1.2% | Urban centers, east-coast concentration | Short term (≤ 2 years) |
| Government incentives for urban logistics and digital infrastructure | +0.9% | Nationwide smart-city zones | Long term (≥ 4 years) |
| Township-level same-day platforms unlocking rural demand | +0.7% | Rural and semi-urban regions | Medium term (2-4 years) |
| AI-enabled dynamic dispatch boosting courier productivity | +0.6% | Tech-advanced hubs | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Expansion of O2O Instant-Retail Platforms
Alibaba’s Freshippo operates more than 300 omnichannel stores that promise two-hour fulfillment within a 3 km urban radius[1]Alibaba Group, “Hema expansion and same-day delivery capabilities,” Alibaba Group, alibabagroup.com. The format collapses stock-to-door timelines, allowing perishable goods to bypass regional distribution centers and move directly from shelf to doorstep. Tight digital loops capture real-time demand data, feed AI forecasting engines, and reduce waste, supporting stickier customer relationships for early entrants within the China same day delivery market. Incremental margin upside comes from premium delivery fees layered on top of standard basket values, particularly for seafood and other high-ticket perishables.
Rapid Growth of Front-Warehouse Micro-Fulfillment Networks
JD.com runs more than 1,000 micro-fulfillment nodes covering 500–2,000 sq m each, cutting delivery windows to under two hours for 90% of metro orders. Smaller footprints fit inside high-rent downtown zones, eliminating long feeder-mile runs and slashing fuel costs. Robotic picking arms and goods-to-person sorters elevate pick-rates, yielding labor-productivity gains that partially offset rider-wage inflation. As these nodes proliferate, density economics improve, pushing the China same day delivery market toward profitable scale in new Tier-2 and Tier-3 cities.
Rising Urban Demand for Fresh Grocery and Prepared Meals
Remote-work lifestyles and double-income households are driving up order frequency for chilled produce and ready-to-eat meals. Operators use temperature-controlled lockers, phase-change cold packs, and sealed delivery boxes to protect food integrity during two-hour runs. Purpose-built “dark stores” with multi-zone refrigeration now account for a growing share of urban real-estate absorption, signaling long-term commitment to perishable same-day channels and expanding service depth inside the China same day delivery market.
Government Incentives for Urban Logistics and Digital Infrastructure
The 14th Five-Year Plan earmarks RMB 2.7 trillion (USD 378 billion) for 5G, IoT sensors, and smart-transport grids that directly lower latency in routing and customs-clearance systems[2]State Council of the People’s Republic of China, “14th Five-Year Plan for National Economic and Social Development,” State Council, english.www.gov.cn. Tax rebates on automation gear and streamlined facility licensing accelerate warehouse builds, shortening payback periods for capital-intensive robotic rollouts. Policy tailwinds therefore compound organic demand drivers, reinforcing a structurally high-growth trajectory for the China same day delivery market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High last-mile labor cost and rider shortages in Tier-1 cities | -1.4% | Beijing, Shanghai, Shenzhen | Short term (≤ 2 years) |
| Tightening regulations on rider welfare and food-safety compliance | -0.9% | Nationwide, stricter in developed regions | Medium term (2-4 years) |
| Fragile unit economics in low-density regions | -0.8% | Rural areas below 500 people/km² | Long term (≥ 4 years) |
| Competition from community group-buy and scheduled delivery | -0.6% | Suburban residential clusters | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Last-Mile Labor Cost and Rider Shortages in Tier-1 Cities
Courier wages in Shanghai and Beijing climbed throughout 2024 as multiple gig-economy platforms competed for a finite labor pool[3]China Labour Bulletin, “Delivery workers in China face rising costs, stagnant wages,” clb.org.hk. Mandatory social-insurance coverage adds recurring costs, squeezing margin on low-value orders. Operators are piloting sidewalk robots and autonomous vans, yet regulatory approvals and public-safety constraints keep scale deployments modest. Peak-hour surge pricing causes demand drop-offs, revealing elasticity ceilings among price-sensitive segments inside the China same day delivery market.
Tightening Regulations on Rider Welfare and Food-Safety Compliance
March 2024 guidelines require delivery firms to enroll riders in pension, medical, and unemployment programs and to adhere to standardized food-handling protocols[4]Ministry of Human Resources and Social Security, “Delivery worker welfare regulations,” mohrss.gov.cn. Compliance involves temperature loggers, insulated containers, and mandatory health checks, increasing fixed costs per order. Larger incumbents absorb these via scale while smaller outfits struggle, accelerating consolidation in the China same day delivery industry.
Segment Analysis
By End User Industry: E-Commerce Leadership with Offline Retail Acceleration
E-commerce platforms controlled 53.49% of 2024 revenue as one-hour delivery became a loyalty linchpin in platform wars. Cart-abandon rates drop sharply when checkout pages promise arrival before dinner, justifying subsidized fees. Brick-and-mortar chains are chasing relevance, driving an 8.52% CAGR between 2025-2030 in offline wholesale and retail by turning store networks into micro-warehouses. Early adopters see same-store sales lift because foot traffic often accompanies in-store pick-ups, a halo effect strengthening channel resilience.
Healthcare demand is rising as hospitals shift from weekly bulk purchasing toward same-day replenishment, preventing stock-outs of temperature-sensitive biologics. BFSI usage is plateauing as digital signatures erode the need for paper document shuttles, though high-net-worth banking services still fund same-day luxury-item deliveries. Industrial customers now embed two-hour part deliveries into maintenance contracts, widening use cases. This horizontal spread confirms that the China same day delivery market is migrating from a consumer convenience play toward an essential corporate utility.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance with International Growth Acceleration
Domestic lanes claimed 68.69% activity in 2024, supported by ubiquitous warehouses, same-day-enabled payment gateways, and familiarity with local compliance rules. Tier-1 city pairs offer enough traffic density to sustain intra-day trunking schedules, creating shipping patterns where a parcel leaves Guangzhou at dawn and arrives in Shanghai before evening. International same-day, pacing at 8.45% CAGR between 2025-2030, hinges on cross-border e-commerce growth funneled through bonded warehouses in Hong Kong and Singapore. Customs pre-clearance APIs shorten paperwork and allow cargo to move straight from aircraft to last-mile handover.
Currency-hedge demand from luxury shoppers in Tokyo and Seoul feeds incremental volumes, as do urgent engineering samples moving between Chinese fabs and Southeast-Asian assembly plants. Yet route viability is conditional on bilateral aviation treaties and airport slot availability, making capacity planning complex. Operators mitigate risk through charter agreements and time-definite guarantees backed by penalty clauses, reinforcing brand equity in the premium layer of the China same day delivery market.
By Shipment Weight: Light Parcels Dominate Volume Economics
Light-weight parcels represented 76.64% of 2024 volume, anchored in fashion, beauty, and 3C accessories that remain staple SKUs for e-commerce checkouts. Automated sorters calibrated for sub-5 kg items deliver 15,000-parcel-per-hour throughput, keeping cost per piece low and reinforcing a virtuous cycle of price and speed. Medium-weight parcels are forecast to grow 7.85% CAGR between 2025-2030 as factories adopt just-in-time replenishment for spare parts, increasingly relying on the China same day delivery market to avoid costly line stoppages. Heavy shipments stay niche because loading-dock hand-offs and weight-cap regulations drive cost up; specialized fleets with tail-lift vans inflate capex.
Merchants are redesigning packaging to slip under weight thresholds and tap cheaper rate cards, evidence that classification thresholds shape product design itself. Robotics progress is narrowing cost gaps across weight bands, yet the biggest productivity wins accrue to light parcels where conveyor-friendly uniformity prevails. Over the forecast horizon, weight-mix shift toward midsize cartons will bump drop-density metrics downward, demanding routing software upgrades to defend profitability.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Networks Drive Urban Penetration
Road services held a 50.99% slice of the China same day delivery market in 2024, benefiting from dense expressway grids that cut intra-city haul times. High stop density lets vans handle 120-plus parcels per shift, reinforcing cost advantages over premium air lanes. Air segments, expanding at an 8.35% CAGR between 2025-2030, target high-value electronics and legal documents where a two-hour airport-to-door promise commands premium fees. Hybrid models emerge as operators move electronics overnight by air from Shenzhen to Beijing, then rely on vans for final-mile handoff, balancing speed and cost. Integrated logistics policy from the Ministry of Transport supports unified waybills that let shipments flow across modes without repacking. The result is fluid modal substitution based on order urgency rather than infrastructural constraints, enlarging revenue capture potential within the China same day delivery market.
Air’s growth is also fueled by provincial governments subsidizing belly-hold capacity at regional airports to stimulate economic diversification. Drone corridor pilots in Jiangxi and Shaanxi further hint at a shift toward point-to-point aerial drops for medical urgency runs. While regulatory clearance remains the gating variable, early trials signal that modal boundaries are blurring. As autonomy matures, mid-range electric trucks equipped with Level-4 driver-assist stacks may chip away at air’s premium niche by offering comparable door-to-door times on sub-800 km lanes, reshaping modal economics inside the China same day delivery industry.
Geography Analysis
China’s domestic freight corridors supplied 68.69% of 2024 revenue, with Beijing-Tianjin-Hebei and the Yangtze River Delta forming the densest nodes. Tier-1 economies sustain twice-daily sortation cycles, allowing courier fleets to hit 98% on-time ratios even during peak seasons. Government subsidies are nudging networks into Tier-2 cities such as Chengdu and Xi’an, where population exceeds 10 million, yet same-day penetration trails coastal peers by more than 15 points. Rural township push programs equip county depots with automated lockers that aggregate the day’s orders for evening hand-outs, shrinking delivery gaps to under 8 hours for 200 million countryside consumers.
Internationally, Hong Kong functions as the primary gateway. Its contiguous customs zone lets bonded parcels exit Chek Lap Kok within 30 minutes of wheels-down and proceed to doorsteps across Kowloon in under two hours. Shenzhen-based integrators further leverage ferries and feeder flights to route electronics into ASEAN capitals overnight, then exploit local van fleets for final-mile runs, effectively extending the China same day delivery market promise beyond mainland borders without duplicating infrastructure.
Asian financial hubs such as Singapore, Tokyo, and Seoul generate premium document and high-value goods traffic. Local partners provide last-mile coverage in exchange for inbound volume guarantees, creating asset-light expansion paths. Western Europe remains at pilot stage; China Post’s new Guangzhou-Luxembourg cargo lanes open test beds, yet customs complexity and time-zone misalignment leave sustained growth dependent on wider digital-customs adoption. Over the horizon, the Regional Comprehensive Economic Partnership may streamline cross-border declarations, unlocking broader geographic scale for the China same day delivery industry.
Competitive Landscape
The field remains consolidated, but the top-five players lifted their combined revenue in 2024, signaling rising concentration. SF Express doubled urban locker density, enabling 15-minute pick-up windows that curb failed-delivery costs. ZTO Express acquired a regional cold-chain firm, integrating fresh-food capability that underpins expansion into grocery verticals. JD Logistics stitched its micro-fulfillment lattice onto its express backbone. Mid-tier providers without technology budgets are ceding share or merging, tightening the race inside the China same day delivery market.
Technology is the competitive fulcrum. AI dispatch tools trim delivery runtimes by 8-12%, while autonomous truck deployments on expressways cut overnight line-haul expenses. STO Express and Cainiao plan to field 2,000 last-mile robots in 2025, chasing cost parity with human couriers in suburban grids. DHL’s partnership with Temu gives the marketplace instant global reach, yet local incumbents guard share through same-day service bundles plus loyalty-program tie-ins. White-space niches persist in hospital logistics, temperature-controlled pharma lanes, and sparsely populated western provinces where large players have yet to lower unit costs.
Regulation acts as both barrier and moat. Compliance infrastructure favors balance-sheet strength; smaller platforms exit rather than shoulder full-time rider benefits. Consolidation thus marches on. Assuming current trajectories, the combined top-five share may top 60% by 2030, nudging the China same day delivery market toward an oligopolistic rhythm where scale economics and technology IP decide the pecking order.
China Same Day Delivery Industry Leaders
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China Post
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SF Express (KEX-SF)
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Shanghai YTO Express (Logistics) Co., Ltd.
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STO Express Co., Ltd. (Shentong Express)
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ZTO Express
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- July 2025: STO Express entered a collaboration with Cainiao to roll out 2,000 autonomous vehicles for final-mile tasks.
- July 2025: China Post inaugurated three new Guangzhou-, Nanjing-, and Zhengzhou-to-Luxembourg cargo routes to accelerate Europe-bound parcels.
- April 2025: DHL Express and Temu formed a strategic partnership to furnish international same-day lanes for Chinese e-commerce exporters.
- August 2024: ZTO Express and Inceptio Technology agreed to deploy 400 autonomous heavy-duty trucks on intercity freight corridors.
China Same Day Delivery Market Report Scope
Air, Road, Others are covered as segments by Mode Of Transport. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Domestic, International are covered as segments by Destination. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Mode of Transport
| Air |
| Road |
| Others |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Destination
| Domestic |
| International |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Mode of Transport | Air |
| Road | |
| Others | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Destination | Domestic |
| International | |
| 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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