Egypt Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 125.97 Million |
| Market Size (2030) | USD 178.63 Million |
| Growth Rate (2025 - 2030) | 5.86% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Egypt Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Egypt courier, express, and parcel market size is estimated at USD 125.97 million in 2025 and is projected to reach USD 178.63 million by 2030, expanding at a 5.86% CAGR between 2025-2030. This outlook reflects currency-related stability after the 2024 foreign-exchange unification, fast-rising mobile payments penetration, and sustained public-private investment in logistics corridors. Domestic deliveries still dominate overall volumes, yet international traffic is accelerating on the back of new cross-border settlement rails, while premium express options attract digitally engaged shoppers who value rapid fulfillment. Venture funding directed at last-mile technology, together with road and port upgrades, is widening service coverage into secondary governorates and raising competitive intensity among incumbents and start-ups alike. As a result, the Egypt courier, express, and parcel market is moving from capacity expansion toward service differentiation, real-time visibility, and payment-linked convenience.
Key Report Takeaways
- By destination, domestic shipments led with 64.78% of the Egypt courier, express, and parcel market share in 2024, while international deliveries are projected to grow at a 6.08% CAGR between 2025-2030.
- By speed of delivery, the non-express category accounted for 76.56% of the Egypt courier, express, and parcel market size in 2024, whereas express services are on course to expand at a 6.79% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) shipments captured 54.14% of total revenue in 2024, yet consumer-to-consumer (C2C) traffic is expected to register a 4.29% CAGR between 2025-2030.
- By shipment weight, heavy weight consignments held 47.62% share in 2024, but light weight parcels are forecast to accelerate at a 6.45% CAGR between 2025-2030.
- By mode of transport, road dominated with 50.37% share in 2024, whereas air freight is poised for a 4.99% CAGR between 2025-2030.
- By end user industry, manufacturing led with 40.20% share in 2024, while e-commerce demand is projected to climb at a 6.39% CAGR between 2025-2030.
Egypt Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rise of mobile-first e-commerce and social commerce | +0.9% | National, concentrated in Greater Cairo and Alexandria | Medium term (2-4 years) |
| Government push for private investment and SEZ logistics hubs | +0.7% | Suez Canal corridor, Port Said, Alexandria | Long term (≥ 4 years) |
| Post-2024 FX unification restoring import flows and payments | +0.6% | National, stronger on international segments | Short term (≤ 2 years) |
| National road project slashing inter-city transit times | +0.5% | National network | Medium term (2-4 years) |
| Digital-wallet and BNPL uptake reducing cash-on-delivery frictions | +0.4% | Urban areas expanding to secondary cities | Medium term (2-4 years) |
| Venture funding boom for last-mile tech start-ups | +0.3% | Cairo and Alexandria spreading nationwide | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Rise of Mobile-First E-Commerce and Social Commerce
Egypt’s mobile-centric consumer base is reshaping parcel flows. In 2024, 88% of residents used at least one emerging digital payment and 35% embraced tap-to-pay smartphone wallets. Social commerce funnels demand directly from discovery to checkout, creating impulse purchases that require same-day or next-day drops. Payment-card tokenization, launched in December 2024, enables contactless authentication without PIN entry, underpinning friction-free checkout for Gen Z and millennial shoppers who are leading adoption. Consequently, courier operators are investing in rapid sortation and time-definite delivery windows to defend share against agile last-mile specialists. The availability of secure, app-based payments also broadens logistics access for micro-merchants, raising the ceiling for B2C volumes within the Egypt courier, express, and parcel market[1]“Arab Republic of Egypt: First and Second Reviews Under the Extended Arrangement…,” IMF, imf.org.
Government Push for Private Investment and SEZ Logistics Hubs
Special Economic Zones (SEZs) along the Suez corridor now grant 10% unified income-tax rates, duty-free equipment imports, and 50-year land usufruct rights to logistics developers. Streamlined one-stop clearance removes earlier multi-agency delays, while recent public-private port concessions—such as the June 2024 cruise-terminal deal in Safaga, Hurghada, and Sharm El-Sheikh—signal durable political backing for infrastructure partnerships. These incentives catalyze modern warehousing clusters that shorten first-mile distances, reduce double-handling costs, and attract 3PLs seeking multimodal connectivity, thereby reinforcing long-term growth prospects for the Egypt courier, express, and parcel market[2]“The Launch of Payment Cards’ Tokenization on Mobile Applications and Apple Pay Service,” CBE, cbe.org.eg.
Post-2024 FX Unification Restoring Import Flows and Payments
The unification of official and parallel currency markets in 2024 removed pricing distortions hampering cross-border trades. Stable exchange rates have allowed couriers to publish fixed tariff cards, improving customer confidence and supporting the 6.08% projected CAGR (2025-2030) of international deliveries. Egypt’s November 2024 entry into the Pan-African Payment and Settlement System (PAPSS) further cuts remittance lags and currency-conversion fees for intra-African shipments. Together these reforms enhance inventory planning, reduce hedging costs, and open the door for smaller players to compete in export-heavy lanes.
National Road Project Slashing Inter-City Transit Times
By 2024, Egypt had added 4,500 km of highways and 40 new bridges, with the Ahmed Hamdy 2 Tunnel easing Suez crossings and bypassing chronic choke points. Improved corridors extend next-day guarantees beyond the Cairo–Alexandria axis to secondary cities, raising the service ceiling for premium express products while lowering per-parcel unit costs for standard offerings. The infrastructure backbone also permits modal shifts—such as truck replacements for short-haul air cargo enhancing operational flexibility within the Egypt courier, express, and parcel market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fuel-price volatility after subsidy reforms | −0.5% | Nationwide, higher on inter-city routes | Short term (≤ 2 years) |
| Chronic last-mile address data gaps outside major cities | −0.4% | Secondary cities and rural districts | Medium term (2-4 years) |
| Congested urban kerb-side and safety deficits | −0.3% | Greater Cairo and Alexandria | Medium term (2-4 years) |
| Geopolitical risks impacting Suez-routed parcels | −0.2% | International lanes via Red Sea corridor | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fuel-Price Volatility After Subsidy Reforms
Diesel now floats with global benchmarks under the IMF-backed fiscal framework, exposing operators to margin swings that are difficult to hedge. Fuel can account for one-third of operating costs in road-based networks, meaning even minor price spikes erode profitability for smaller fleets that lack scale economies[3]“Central Bank of Egypt Joins the Pan-African Payment and Settlement System PAPSS,” CBE, cbe.org.eg.
Chronic Last-Mile Address Data Gaps
Beyond Cairo and Alexandria, fragmented street numbering compels drivers to rely on landmarks and telephone coordination, elevating failed-delivery rates and staffing needs. Expanding guaranteed delivery promises into these areas remains uneconomical until coordinated addressing initiatives gain traction[4]“President El-Sisi Inaugurates 2024 Harvest Season of ‘Egypt’s Future’…,” SIS, sis.gov.eg.
Segment Analysis
By End User Industry: Manufacturing Holds, E-Commerce Surges
Manufacturing contributed 40.20% of 2024 revenues and remains core, given duty-free import privileges for zone-based plants. Yet e-commerce parcels, projected at 6.39% CAGR between 2025-2030, will become the foremost driver as transaction values surpass EGP 180 billion (USD 5.81 billion) by year-end 2024.
Healthcare and financial-services niches uphold premium margin potential through compliance-critical deliveries.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Shipments Gain Momentum
International deliveries, only 35.22% of 2024 volumes, are projected to grow at a 6.08% CAGR between 2025-2030, faster than the domestic segment that currently comprises 64.78% of the Egypt courier, express, and parcel market. Currency stability after FX unification enables pre-priced cross-border offers, while PAPSS participation cuts settlement times. The Egypt courier, express, and parcel market size for international parcels therefore stands to expand markedly as exporters obtain predictable rates. Domestically, last-mile reach still underpins volume leadership, yet address-data gaps limit growth potential in peripheral governorates.
Improved port concessions at Safaga and Hurghada enhance future sea-air integration, whereas venture-backed start-ups are testing technology-driven rural coverage. The resulting two-tier dynamic steady domestic base with high-growth cross-border lanes—will shape network investment and fleet mix decisions.
By Speed of Delivery: Express Services Outpace Non-Express
Express shipments start from a smaller base yet climb at 6.79% CAGR between 2025-2030 on the strength of mobile checkout and BNPL financing that motivate premium turnaround. Non-express keeps a 76.56% share in 2024 because price sensitivity and cash-on-delivery workflows elongate standard cycle times. Instapay’s fee waiver, extended in December 2024, broadens electronic payment adoption and underwrites higher express-service demand.
Nonetheless, the National Roads Program narrows transit differentials for many inter-city routes, undermining willingness to pay for express unless value-added features—such as proactive time-slot selection—are bundled. Operators will therefore need to differentiate on reliability metrics rather than pure speed alone.
By Shipment Weight: Light Parcels Propel Growth
Light parcels register a 6.45% forecast CAGR between 2025-2030, mirroring the rise of fashion, electronics, and cosmetic e-commerce baskets. Heavy consignments-47.62% share in 2024 support the industrial backbone of Special Economic Zones, while medium weights capture overflow traffic.
The Egypt courier, express, and parcel market share for light items continues to climb as sortation automation raises throughput and lowers unit cost in densely populated areas.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Road Prevails, Air Accelerates
Road haulage retains a 50.37% share in 2024 thanks to the expanded highway grid, while air freight logs a 4.99% CAGR between 2025-2030 because shippers seek resilience against Red-Sea disruptions.
Rail and multimodal links should gain traction once planned high-speed freight corridors advance, offering cost-competitive substitutes over longer domestic hauls.
By Model: B2C Leads but C2C Rises
Business-to-Consumer flows accounted for 54.14% of revenues in 2024, fueled by mainstream marketplace adoption. Meanwhile, Consumer-to-Consumer parcels show 4.29% CAGR between 2025-2030, helped by peer-to-peer exchange apps that piggyback on nationwide agent networks. Technology platforms that simplify identity verification and integrate mobile wallets are lowering entry barriers, broadening the Egypt courier, express, and parcel market to individual senders.
Business-to-Business volumes remain stable within manufacturing clusters, yet competition from digital freight marketplaces is pressuring rates. Hybrid models that combine B2C and C2C will likely dominate future urban growth pockets.
Geography Analysis
Metropolitan Cairo and Alexandria account for the lion’s share of domestic volumes due to dense addressable populations and mature street grids. The Egypt courier, express, and parcel market size within Greater Cairo benefits from 40 new bridges that relieve intra-city choke points. Inbound–outbound consolidation around Alexandria Port supports trade-linked courier demand, managing roughly 65% of Egypt’s merchandise flow.
Secondary governorates are gaining share as 4,500 km of fresh highways cut travel times; however, inconsistent addressing standards restrain service guarantees. Internationally, Egypt’s central position on the Europe-Asia land-bridge augments Suez-related parcel flows, while PAPSS access simplifies intra-African e-commerce remittances.
Red-Sea geopolitical uncertainty nudges some cargo to Cairo-based air hubs, reinforcing the growth trajectory for premium international express lanes.
Competitive Landscape
The market remains moderately consolidated, with global incumbents leveraging scale and customs expertise and domestic entrants competing on localized technology, cash handling, and flexible fleet models. Venture-funded platforms emphasize API-driven tracking and crowdsourced capacity, raising consumer expectations for speed and transparency.
Incumbents respond through partnership models inside SEZs, exploiting 10% tax incentives to erect regional sortation nodes.
White-space in rural governorates remains available but operationally challenging; success hinges on address-data solutions and hybrid payment acceptance. The Egypt courier, express, and parcel industry is therefore witnessing convergence toward asset-light digital ecosystems co-existing with network-asset heavy players who can guarantee nationwide service continuity during demand spikes.
Egypt Courier, Express, And Parcel (CEP) Industry Leaders
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Aramex
-
DHL Group
-
Mylerz
-
FedEx
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Egypt Post
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2024: The Central Bank prolonged Instapay fee waivers, supporting 12.5 million users and bolstering digital settlement volumes.
- June 2024: A new Red Sea Ports Authority concession with Abu Dhabi Ports Group cleared the way for multimodal terminal upgrades at Safaga and Hurghada.
- February 2024: DHL signed a government partnership to co-develop logistics hubs inside Suez Economic Zone facilities.
- January 2024: Egypt’s central bank enabled payment-card tokenization for Apple Pay, laying the groundwork for contactless parcel-delivery payments.
Egypt Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
