Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 18.72 Billion |
| Market Size (2030) | USD 22.77 Billion |
| Growth Rate (2025 - 2030) | 4.00% 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. |
|
France Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The France courier, express, and parcel market size is valued at USD 18.72 billion in 2025 and is projected to reach USD 22.77 billion by 2030, advancing at a 4.00% CAGR between 2025-2030. E-commerce growth, cross-border flows from Asia, and regulatory changes that favor low-emission operations shape this trajectory. Parcel volumes climb as online spending grows faster than store-based retail, while out-of-home (OOH) networks help operators raise stop density and limit failed deliveries. International marketplaces drive inbound small-parcel flows that boost line-haul mileage yet compress margins because of their low declared value. Meanwhile, sustainability mandates such as France’s 25 active low-emission zones (ZFE-M) accelerate fleet electrification and cargo-bike adoption in dense city cores, permanently shifting last-mile cost structures. Competitive intensity rises as incumbents and new entrants race to upgrade hubs, digital tools, and alternative-fuel fleets in order to preserve service quality while meeting cost and environmental targets.
Key Report Takeaways
- By destination, domestic services held 66.11% of the France courier, express, and parcel market share in 2024; international flows are forecast to expand at a 4.16% CAGR between 2025-2030.
- By speed of delivery, non-express accounted for 73.82% of the France courier, express, and parcel market size in 2024, while express options are projected to advance at a 4.55% CAGR between 2025 and 2030.
- By model, the business-to-consumer (B2C) segment commanded 53.11% revenue share in 2024; consumer-to-consumer (C2C) values are the fastest riser, tracking a 3.29% CAGR between 2025-2030.
- By shipment weight, lightweight parcels captured 52.40% of the revenue share in 2024, whereas heavyweight consignments are expected to grow at a 3.63% CAGR between 2025-2030.
- By end user industry, manufacturing led with 33.39% revenue contribution in 2024, yet e-commerce is set to deliver the highest 4.36% CAGR between 2025-2030.
- By mode of transport, road services led with 54.70% share in 2024, while air transport is expected to grow at a 3.40% CAGR between 2025-2030.
France Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce penetration surge | +1.1% | National; highest in Île-de-France, Lyon, Marseille | Medium term (2-4 years) |
| Rising cross-border parcel flows from Asia | +0.8% | National; gateways at Paris-CDG and Lyon | Long term (≥ 4 years) |
| Demand for faster last-mile and OOH options | +0.6% | Urban cores, spreading to peri-urban zones | Short term (≤ 2 years) |
| Sustainability push for zero-emission fleets | +0.5% | All 25 ZFE-M zones | Long term (≥ 4 years) |
| Paris-2024 logistics upgrades (cargo-bike zones) | +0.4% | Île-de-France and other large cities | Medium term (2-4 years) |
| Gen-Z second-hand marketplace boom (C2C) | +0.3% | National, youth-dense metro areas | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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E-Commerce Penetration Surge
National online retail sales grew 8.4% year-on-year in Q2 2024, widening the parcel pool in every major city. Higher stop density lifts vehicle utilization, while omnichannel retailers add home-delivery and click-and-collect flows that broaden shipment origin points. Dark-store operators in Paris now target sub-two-hour service windows, forcing carriers to redesign routing for micro-fulfillment zones. Pickup-point expansion underpins cost control, as La Poste operates 128,000 sites that lower failed-delivery risk and shorten trunk routes. E-commerce shoppers increasingly favor sustainable options, and carriers that certify carbon-reduced services gain pricing power within premium delivery tiers[1]“Courriers et colis: le prix augmentera en moyenne de 6,8 % en 2025,” DILA, service-public.fr.
Rising Cross-Border Parcel Flows from Asia
About 4.6 billion small parcels entered Europe in 2024, with 91% dispatched from China, reshaping domestic network economics. Operators must process vast volumes of low-value items that occupy capacity yet generate slender margins. Partnerships between Chinese marketplaces and global express firms, such as Temu’s tie-ups with DHL, channel traffic through French airports that already handle peak e-commerce flows. Proposed EU tax reforms on low-value consignments inject strategic uncertainty but could also lift yields if minimum-value exemptions disappear. Domestic players respond by automating customs data capture and expanding bonded sortation space at gateway hubs to speed clearance and cut handling costs[2]“Anticipating the Olympic and Paralympic Games,” French Ministry of Transport, anticiperlesjeux.gouv.fr.
Demand for Faster Last-Mile and OOH Options
Express delivery norms tighten as consumers expect J+1 as the baseline in 2025. Out-of-home networks grow quickly; cross-border OOH parcels jumped 52% in 2024, proving that shoppers accept alternative pickup in return for low or zero delivery fees. Locker density in large metro areas reduces curb-parking time and shrinks failed-delivery rates, boosting driver productivity. Retail locations that host lockers or staffed counters gain extra footfall, creating alignment between parcel operators and merchants. Flexible pick-up hours and try-on kiosks inside select stores deliver service differentiation for carriers without expanding vehicle fleets.
Sustainability Push for Zero-Emission Fleets
Twenty-five French cities enforce ZFE-M rules that limit combustion-engine access, compelling operators to electrify fleets or rely on alternative fuels. XPO ordered 165 Renault electric trucks in 2024 to protect urban entry slots and future-proof its network. The France 2030 program earmarks EUR 100 million (USD 110.36 million) to expand heavy-duty charging, but many peri-urban depots still lack high-power connections. Operators bridge gaps with hydrotreated vegetable oil (HVO) as a transition fuel and pilot cargo bikes for ultra-dense districts. GEODIS plans to multiply its electric fleet tenfold by 2030 as part of its Ambition 2027 plan.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Margin squeeze from price wars and labor costs | −0.7% | Nationwide; sharpest in major metro areas | Short term (≤ 2 years) |
| Urban land-use and ZFE-M restrictions | −0.5% | 25 regulated zones | Medium term (2-4 years) |
| Low-value parcels from Asian sites erode yields | −0.4% | National; gateway clusters | Medium term (2-4 years) |
| Sparse high-power EV charging at peri-urban depots | −0.3% | Peri-urban logistics belts | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Margin Squeeze from Price Wars and Labor Costs
Road-transport company insolvencies rose 35.4% in Q4 2024 as operators struggled to pass wage and fuel hikes onto shippers. Fierce bidding for large e-commerce contracts keeps line-haul rates low, even as last-mile wages climb in dense cities where employment alternatives abound. Global integrators rationalize headcounts FedEx cut up to 2,000 European jobs in 2025 to protect margins in a soft-pricing environment. Fragmented owner-driver subcontracting further dampens pricing discipline because capacity outstrips demand on many lanes[3]“Zones à faibles émissions mobilité,” French Ministry of Ecological Transition, ecologie.gouv.fr.
Urban Land-Use and ZFE-M Restrictions
Compliance with phased emission classes forces carriers to operate split fleets, raising capital outlays and maintenance complexity. Simultaneously, the Zero Net Artificialization (ZAN) rule curbs new depot construction, hindering network redesign for electrified ranges. Municipal congestion charges extend dwell times and cut daily stop counts, eroding vehicle productivity[4]“Commission proposes new rules,” European Commission, ec.europa.eu.
Segment Analysis
By End User Industry: Manufacturing Leads, E-Commerce Accelerates
Manufacturing produced 33.39% of 2024 revenue, anchored by automotive, aerospace, and machinery exports that require precise B2B deliveries. E-commerce, advancing at a 4.36% CAGR between 2025-2030, injects high-volume residential drops that reshape network design. Healthcare and financial services stay niche yet high-margin due to regulatory and security requirements.
Diversified demand shields carriers from sector-specific slowdowns. Fixed-interval industrial collections fill off-peak van capacity, while evening residential rounds improve asset utilization. Operators that balance industrial and consumer flows are positioned to outperform in the France courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Cross-Border Gains Momentum
International services grew faster than domestic in 2024 and are on course for a 4.16% CAGR between 2025-2030, even though the France courier, express, and parcel market size remains dominated by domestic deliveries at 66.11% share in 2024. Low-value imports from Asian platforms swell parcel counts at Paris-CDG and Lyon Saint-Exupéry, compelling carriers to refine customs-clearance automation to protect transit times. Domestic volumes benefit from dense pickup-point networks and short lead times that align with consumer expectations, yet face yield pressure when shippers benchmark prices against cross-border offers.
Operators differentiate through duty-paid options and real-time tracking to win shopper trust on international consignments. La Poste’s 52% jump in cross-border OOH traffic in 2024 demonstrates that flexible collection mitigates last-mile cost inflation. Carriers that master customs data capture and offer end-to-end visibility are expected to secure higher margins on the expanding cross-border segment of the France courier, express, and parcel market.
By Speed of Delivery: Express Commands Premium Growth
Express shipments are forecast to grow 4.55% CAGR between 2025-2030, outpacing the broader France courier, express, and parcel market. Non-express retained 73.82% share in 2024, signaling cost sensitivity among many shippers, yet willingness to pay rises for premium J+1 service in metropolitan corridors. Quick-commerce grocery and pharmacy sub-segments especially value sub-two-hour windows, creating demand for micro-fulfillment hubs.
Express operators invest in dynamic routing and predictive ETA tools to maintain on-time performance. They also roll out smaller, electric vans and cargo bikes to keep pace with strict delivery windows inside emission zones. The premium revenue from time-definite services helps offset higher capital expenditure for low-emission fleets, supporting the profitability of the France courier, express, and parcel market.
By Shipment Weight: Light Parcels Drive Volume
Light weight parcels kept a 52.40% share in 2024 as e-commerce staples such as apparel, books, and accessories fill vans efficiently. Heavyweight consignments, though smaller in count, will rise 3.63% CAGR between 2025-2030, linked to industrial equipment and bulk consumer goods.
Lightweight dominance favors cargo-bike adoption because most intra-city packages weigh well below 30 kg. Conversely, heavier freight calls for reinforced floors, tail-lifts, and higher payload vans, elevating operating costs but yielding higher revenue per stop. Balanced fleet composition allows carriers to serve diverse weight profiles inside the France courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Dominance Faces Modal Shift
Road retained 54.70% share in 2024 due to nationwide highway density and flexibility. Airfreight, however, posts a 3.40% CAGR between 2025-2030 as cross-border e-commerce and healthcare cargo demand faster transits. GEODIS already runs 100+ weekly rail services that cut CO₂ by up to 80% on electrified corridors, showcasing intermodal potential.
Modal diversification hedges against fuel volatility and emission fees. Electrified rail corridors plus last-mile road and bike legs can shrink carbon footprints while preserving reliability, a value proposition gaining ground among large shippers active in the France courier, express, and parcel market.
By Model: B2C Dominates While C2C Emerges
Business-to-consumer (B2C) accounted for 53.11% of France courier, express, and parcel market share in 2024 as established online retailers and direct-to-consumer brands leaned on parcel networks to reach shoppers nationwide. Consumer-to-consumer (C2C) traffic tied to second-hand marketplaces is expanding at a 3.29% CAGR between 2025-2030, motivated by Gen-Z preference for circular fashion and electronics exchanges.
Traditional B2C routes offer predictable demand that supports route optimization, while C2C flows exhibit dispersed origins and destinations. Carriers respond by integrating label-printing kiosks and smart lockers to streamline consumer shipping. Flexible pricing tiers based on parcel weight and drop-off location help preserve margins in the evolving model mix of the France courier, express, and parcel market.
Geography Analysis
Domestic parcels dominate network throughput because they bypass customs and enjoy deep pickup-point coverage. Dense urban clusters such as Île-de-France, Auvergne-Rhône-Alpes, and Provence-Alpes-Côte d’Azur generate the majority of B2C and C2C drops, underpinning stop density economies. Rural territories remain costlier per stop, but parcel-locker rollouts and postal agency partnerships mitigate service-level disparities.
International flows, though smaller in share, expand faster on the back of Asian marketplace penetration and intra-EU e-commerce. Paris-CDG anchors air gateways, while Lyon Saint-Exupéry and Marseille Fos handle rising maritime-air transload activity. Bonded sort facilities near these hubs adopt automated x-ray and data-matching systems to increase throughput and limit dwell times.
Regional policy differs on emission regulations: Grenoble and Lyon pursue more aggressive timelines for diesel bans than Lille or Toulouse, compelling operators to stage electric vans in multiple depots to stay compliant. Carriers that fine-tune geography-specific fleet mixes and leverage intercity rail to feed city-center micro-hubs stand to unlock margin gains across the France courier, express, and parcel market.
Competitive Landscape
The market is moderately consolidated. The top five major players accounted for a combined majority share of the market. La Poste processed 2,625 million parcels in 2024 using the country’s largest pickup network. DHL earmarked EUR 2 billion (USD 2.20 billion) for health-logistics assets, including a new Lyon hub, signaling a commitment to specialized verticals. GEODIS’s Ambition 2027 program channels EUR 2 billion (USD 2.20 billion) into digital tools and fleet electrification, underlining sustainability as a core differentiator.
GLS opened a EUR 50 million (USD 55.18 million) automated hub south of Paris that handles 15,000 parcels per hour and includes rooftop solar panels and 14 EV chargers. XPO’s electric-truck order strengthens urban access, while UPS’s acquisition of Frigo-Trans builds temperature-controlled competence. Asset-light tech players focus on micro-warehousing and API-led delivery orchestration but remain sub-5% in market share.
Competitive advantages hinge on route-optimization software, real-time tracking, and carbon-footprint reporting. Operators able to quantify emission savings and guarantee urban-zone compliance are likely to capture premium accounts as shippers face Scope 3 disclosure rules.
France Courier, Express, And Parcel (CEP) Industry Leaders
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DHL Group
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FedEx
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La Poste Group
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Mondial Relay
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United Parcel Services of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2025: DHL began construction of a USD 140 million cold-chain facility near Lyon to handle temperature-sensitive pharmaceuticals in anticipation of 2027 EU GDP revisions.
- December 2024: GEODIS launched its Ambition 2027 plan, pledging to expand its electric vehicle fleet tenfold and invest 3.5% of revenue in digital tools.
- September 2024: GLS opened a fully automated parcel hub in Coudray-Montceaux equipped with photovoltaic panels and heavy-duty superchargers for trucks.
- June 2024: UPS finalized its takeover of Frigo-Trans, adding GDP-compliant refrigerated trucking across France and neighboring EU states.
France Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Destination
| Domestic |
| International |
Speed of Delivery
| Express |
| Non-Express |
Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Mode of Transport
| Air |
| Road |
| Others |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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