GCC International Express Service Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 667.61 Million |
| Market Size (2030) | USD 978.12 Million |
| Growth Rate (2025 - 2030) | 7.94% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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GCC International Express Service Market Analysis by Mordor Intelligence
The GCC international express service market size stands at USD 667.61 million in 2025 and is forecast to reach USD 978.12 million by 2030, reflecting a 7.94% CAGR between 2025-2030. Rising cross-border e-commerce volumes, large-scale transport investments under Saudi Vision 2030, and the UAE’s push toward USD 1 trillion in non-oil trade underpin this upward trajectory. Network reliability is improving as gateway hubs in Jebel Ali and King Salman introduce 24-hour clearance, while bonded-logistics zones in Riyadh and Dubai shorten door-to-door transit times. Medium-weight parcels gain momentum on the back of regional fulfillment models, and healthcare logistics commands premium yields thanks to cold-chain roll-outs. Yet, cost pressures linked to rerouted air corridors and workforce nationalization offset some gains. Operators that digitize customs workflows and expand last-mile reach beyond tier-1 cities remain best positioned to capture share in the GCC international express service market.
Key Report Takeaways
- By shipment weight, light parcels led with 54.46% of the GCC international express service market share in 2024, while medium-weight parcels are projected to expand at a 7.57% CAGR between 2025-2030.
- By route, inter-region services accounted for 73.49% of the GCC international express service market size in 2024, while intra-region flows will post the fastest growth at a 6.79% CAGR between 2025 and 2030.
- By end user industry, e-commerce held 53.32% of 2024 revenue, while healthcare is advancing at an 8.73% CAGR between 2025-2030.
- By country, Saudi Arabia captured 32.25% of the 2024 value; the UAE is set to record the highest 8.65% CAGR between 2025-2030.
GCC International Express Service Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cross-border e-commerce boom | +0.3% | GCC-wide (UAE, KSA lead) | Short term (≤ 2 yrs) |
| GCC customs-duty harmonization | +0.1% | All member states | Medium term (2-4 yrs) |
| 24-hour clearance at Jebel Ali and King Salman | +0.1% | UAE, KSA | Short term (≤ 2 yrs) |
| Expanding bonded-logistics zones | +0.1% | KSA, UAE, Qatar | Medium term (2-4 yrs) |
| Pharma “cold-chain-as-a-service” roll-outs | +0.1% | GCC urban centers | Medium term (2-4 yrs) |
| Carbon-neutral express pledges | +0.1% | Major aviation hubs | Long term (≥ 4 yrs) |
| Source: Mordor Intelligence | |||
Cross-Border E-Commerce Boom
Cross-border shopping is lifting volumes across all value bands and contributes the single-largest gain to the overall CAGR. Mandatory seller registration introduced in the UAE and Saudi Arabia improves transaction security and shifts inventory from offshore direct-ship models to GCC-based fulfillment centers. National postal operators, typified by Qatar Post’s “Connected” service, now provide hybrid delivery choices that blend international and last-mile legs, further deepening regional parcel density. Consolidated fulfillment shortens delivery windows and nudges average shipment weight from light toward medium parcels, a shift that enhances revenue yield in the GCC international express service market[1]The Peninsula, “Qatar Post and US Embassy Sign Courier Agreement,” thepeninsulaqatar.com.
GCC Customs-Duty Harmonization
The January 2025 roll-out of a unified 12-digit HS code across member states cuts classification disputes, easing cargo hand-offs among airports, seaports, and free zones. Although ERP upgrades and staff retraining elevate near-term costs, operators expect lower brokerage errors and swifter billing reconciliation once the new structure stabilizes. The broader impact is incremental—yet material—because seamless tariff treatment encourages merchants to anchor stock in bonded zones and distribute intra-regionally, stimulating additional express legs.
24-Hour Clearance at Jebel Ali and King Salman Hubs
Automation upgrades in Dubai and Riyadh compress dwell times from full-day cycles to sub-six-hour targets, directly raising service reliability. NAQEL Express, possessing customs-broker licenses at all major Saudi gateways, exemplifies private-sector agility in capitalizing on round-the-clock release windows. Shorter terminal stays free up airline belly capacity, letting carriers prioritize high-yield express consignments over standard freight.
Expanding Bonded-Logistics Zones
Large integrated parks—such as the 1.5 million m² SAL Logistics Zone—enable duty-free storage, labeling, and returns processing. Their airside proximity converts former truck drayage into conveyor links, giving express couriers immediate line-haul access. As more e-commerce merchants commit to stocking within these enclaves, shipment consolidation reduces customs stops at destination borders and sustains higher throughput per flight.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Limited last-mile infrastructure outside tier-1 cities | -0.1% | Secondary cities in all GCC states | Medium term (2-4 yrs) |
| Workforce nationalization quotas | -0.1% | KSA, UAE | Short term (≤ 2 yrs) |
| Geopolitical choke-points | -0.1% | Strait of Hormuz and alternates | Short term (≤ 2 yrs) |
| Cargo security rules on lithium batteries | -0.0% | GCC aviation hubs | Short term (≤ 2 yrs) |
| Source: Mordor Intelligence | |||
Limited Last-Mile Infrastructure Outside Tier-1 Cities
Sparse locker networks and incomplete address systems in emerging suburbs inflate delivery attempts and vehicle miles. Such inefficiencies erode margins despite unit-revenue gains elsewhere. Parcel-locker roll-outs and crowd-sourced drivers partially bridge gaps, though scale-up hinges on municipal permits and consumer uptake.
Workforce Nationalization Quotas
Policies demanding higher shares of national employees raise fixed costs and training cycles, especially in customs brokerage and hazardous-goods handling. While alliances with vocational institutes broaden the talent funnel, near-term staff shortages force overtime premiums and constrain peak-season surge capacity.
Segment Analysis
By End User Industry: E-Commerce Leads, Healthcare Accelerates
E-commerce retained 53.32% of 2024 revenues, buoyed by mobile-first shoppers, integrated payment gateways, and marketplace subsidy programs that kept shipping fees low. In contrast, healthcare, spanning biologics and medical devices, commands superior yields and is forecast to climb at an 8.73% CAGR between 2025-2030—well ahead of the overall GCC international express service market.
Investment in GDP-compliant facilities, such as NAQEL Express’s temperature-controlled vaults, persuades pharmaceutical importers to migrate away from passive packaging toward active containers that guarantee 2-8 °C integrity. Banking and financial services traffic plateaus as digitization trims physical document flow, yet persists where blue-ink signatures remain regulatory staples. Manufacturing-sector adoption mirrors progress in Saudi automotive clusters and UAE aerospace composites, injecting steady base-load volumes that diversify the customer mix.
Note: Segment shares of all individual segments available upon report purchase
By Shipment Weight: Light Parcels Anchor Volume, Medium Parcels Accelerate
Light parcels held 54.46% of 2024 consignments, underscoring the prevalence of apparel, electronics, accessories, and documents in routine cross-border flows. Automated sort belts and high-frequency flights enable predictable two-day lead times, keeping customer churn low in the GCC international express service market. The medium-parcel band, riding on B2B replenishment of industrial spares and healthcare kits, will pace growth at a 7.57% CAGR between 2025-2030, nudging the segment’s revenue share materially upward.
As retailers centralize stock in bonded GCC hubs, order sizes bunch into multi-SKU cartons that migrate from light to medium weights. FedEx’s Surround visibility platform now lets shippers monitor vibration, temperature, and light exposure across all weight categories, yet monetization potential scales faster on heavier boxes with higher declared value. Heavy-parcel shipments, while niche, sustain stable demand in automotive and machinery verticals linked to Saudi industrial diversification, affirming their role as a revenue stabilizer even when consumer cycles soften.
Note: Segment shares of all individual segments available upon report purchase
By Route: Inter-Region Dominates, Intra-Region Gains Pace
Inter-region lanes—Asia-to-GCC and GCC-to-Europe in particular—secured 73.49% of 2024 revenues, a testament to the region’s hub role for ocean-air combinations. Emirates, Qatar Airways, and Etihad commit wide-body capacity that funnels time-definite parcels to European fashion and U.S. tech buyers without additional handling. Nonetheless, the intra-region slice is set for a 6.79% CAGR between 2025-2030 as unified customs codes and planned rail corridors compress border formalities and line-haul times.
Expansion of Etihad Rail toward Saudi borders will introduce roll-on express carriages that interline seamlessly with last-mile vans, positioning ground modes as a credible overnight alternative on high-density corridors. Inter-region operators, meanwhile, face higher war-risk premiums when reroutes skirt conflict zones, mildly tempering their margin edge.
Geography Analysis
Saudi Arabia occupies the leading 32.25% share in 2024, thanks to policy-linked capex and a maturing multimodal ecosystem. The 1.5 million m² SAL Logistics Zone near Riyadh International Airport couples airside ramps with Grade-A warehouses, letting shippers cross-dock express parcels within the free-zone perimeter. Efficiency gains reflect in the Kingdom’s leap of 17 positions on the World Bank Logistics Performance Index between 2023 and 2024.
The UAE, though smaller in size, registers the strongest 8.65% CAGR outlook between 2025-2030. Jebel Ali’s 15.5 million TEU throughput in 2024 and the Trade+ single-window system that cuts release times by 90% fortify Dubai’s claim as the prime transshipment gateway[2]CargoTalk GCC, “Dubai Trade Upgrades Digital Delivery Order to Trade+,” cargotalkgcc.com. Emirates SkyCargo’s targeted freighter links to Copenhagen exemplify the airline’s pivot toward pharmaceutical corridors, dovetailing with Dubai’s ambition to dominate high-value cold-chain trade.
Qatar, Bahrain, Kuwait, and Oman form the Rest-of-GCC cluster. Doha’s Ras Bufontas Free Zone, hosting FedEx’s new regional hub, handles 500 tons of mail and parcels daily with 100% EDI coverage, positioning Qatar as a specialized express node[3]Qatar PR Network, “Qatar Airways Cargo Relaunches Mail Solution,” qatarprnetwork.com. Bahrain climbed 25 ranks on the Logistics Performance Index after rolling out an integrated sector strategy, while Kuwait and Oman bank on GCC railway connectivity to offset port-centric constraints and widen catchment areas for express operators.
Competitive Landscape
Global integrators, regional specialists, and national posts share the arena, producing moderate consolidation. Aircraft ownership and IT capital create economies of scale, yet local knowledge in customs, language, and last-mile routing offers competitive counterweights. FedEx’s deployment of AI-driven Surround sensors gives shippers predictive ETAs and real-time exception alerts, enhancing stickiness among high-value clients[4]Technical Review Middle East, “FedEx Introduces Surround Visibility in the UAE,” technicalreviewmiddleeast.com.
NAQEL Express sets itself apart through 24/7 customs clearance licenses at every Saudi gateway and SFDA-certified cold-chain hubs, a combination that secures regulated-goods traffic. DHL’s announced EUR 500 million (USD 551 million) Middle East investment earmarks automation and bonded-park expansion in KSA and UAE to bolster same-day and next-day coverage. Technology startups, including OmniOps, offer sovereign AI routing engines that let regional operators keep data onshore, mitigating compliance risk while boosting dispatch efficiency.
Strategic collaborations intensify: Saudia Cargo teams with Scan Global Logistics for European transit, UPS opens a Dubai South facility to amplify intra-region reach, and Qatar Post clinches the first postal-security award, cementing its credentials for sensitive deliveries. Future battlegrounds will revolve around secondary-city penetration, multimodal rail-air solutions, and ESG-aligned capacity commitments.
GCC International Express Service Industry Leaders
-
Aramex
-
DHL Group
-
FedEx
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United Parcel Service of America, Inc. (UPS)
-
Saudi Post- SPL (including Naqel Express)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- September 2025: FedEx and Qatar Free Zones Authority inaugurated a regional logistics hub at Ras Bufontas Free Zone, deepening Doha’s role in Asia-Europe-North America supply chains.
- July 2025: Qatar Post and the U.S. Embassy signed an accord naming the postal operator as the exclusive courier for American Citizen Services passports and birth documents.
- June 2025: DHL Group unveiled a EUR 500 million (USD 551 million) investment plan for GCC capacity expansions running through 2030.
- March 2025: Dubai South and UPS agreed to establish a new logistics facility inside the Logistics District to accelerate trade lanes via the UPS global network.
GCC International Express Service Market Report Scope
Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Inter-Region, Intra-Region are covered as segments by Route. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry. Qatar, Saudi Arabia, UAE are covered as segments by Country.| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Inter-Region |
| Intra-Region |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Qatar |
| Saudi Arabia |
| UAE |
| Rest of GCC |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Route | Inter-Region |
| Intra-Region | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others | |
| Country | Qatar |
| Saudi Arabia | |
| UAE | |
| Rest of GCC |
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
