Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.30 Billion |
| Market Size (2030) | USD 2.86 Billion |
| Growth Rate (2025 - 2030) | 4.44% 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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Germany Same Day Delivery Market Analysis by Mordor Intelligence
The Germany same day delivery market size is valued at USD 2.3 billion in 2025 and is projected to reach USD 2.86 billion by 2030, expanding at a 4.44% CAGR over 2025-2030. This forecast confirms the Germany same day delivery market’s progression from niche experimentation toward disciplined, cost-sensitive operating models. Sustained e-commerce volumes, an extensive federal highway network, and World-Bank-ranked fourth-best logistics performance combine to keep demand resilient despite consumer price caution. Courier networks are converting single-purpose depots into micro-fulfillment hubs, while parcel lockers proliferate through carrier partnerships that lower last-mile costs. Driver shortages and city-center congestion push fleet operators toward electrification, AI-guided routing, and locker-first deliveries. At the same time, pharmaceutical, grocery, and high-value industrial segments pay premiums for sub-2-hour fulfillment, opening profitable niches even as discretionary retail volumes plateau.
Key Report Takeaways
- By mode of transport, road networks held 51.09% of Germany same day delivery market share in 2024, while air transport is advancing at a 4.48% CAGR between 2025-2030.
- By shipment weight, light weight parcels accounted for 75.31% of the Germany same day delivery market size in 2024 and medium weight parcels are progressing at a 4.22% CAGR between 2025-2030.
- By destination, domestic deliveries captured 70.46% of the revenue share in 2024; international services are expanding at a 4.55% CAGR between 2025-2030.
- By end user industry, e-commerce commanded 53.21% share of the revenue share in 2024, while wholesale and retail trade offline is forecast to post the fastest 4.57% CAGR between 2025-2030.
Germany Same Day Delivery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Continued surge in German B2C e-commerce transactions | +1.2% | National, with concentration in Berlin, Hamburg, Munich metro areas | Short term (≤ 2 years) |
| High consumer demand for ≤2-hour grocery and pharma fulfillment | +0.9% | Urban centers and suburban areas with high population density | Medium term (2-4 years) |
| Expansion of urban micro-fulfillment and dark-store networks | +0.8% | Tier-1 metros expanding to Tier-2 cities like Cologne, Frankfurt, Stuttgart | Medium term (2-4 years) |
| Fleet electrification incentives and ESG-led procurement | +0.6% | National, with early adoption in emission zones of major cities | Long term (≥ 4 years) |
| Federal fast-charging corridor for heavy-duty e-trucks | +0.4% | National highway network connecting major logistics hubs | Long term (≥ 4 years) |
| Pilot use of intra-city rail cityhub services | +0.3% | Metropolitan areas with existing rail infrastructure | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Continued Surge in German B2C E-Commerce Transactions
Persistent online shopping keeps parcel volumes elevated even as real incomes remain under pressure. While 17% of Germans tried rapid delivery in 2024, a further 33% say they will use it if services become ubiquitous, indicating unmet demand clustered in top metros. Operators respond by installing micro-hubs within five kilometers of dense residential zones, shortening average drop distance from 18 km in 2024 to near 6 km in 2025. Established couriers leverage GDPR-compliant data lakes to forecast one-hour demand and pre-stage inventory, advantages smaller rivals struggle to match[1]“Digital Testbed Air Cargo,” Fraunhofer-Institut für Materialfluss und Logistik, IML.fraunhofer.de .
High Consumer Demand for ≤ 2-Hour Grocery and Pharma Fulfillment
Germany’s aging population and rising telemedicine adoption raise the value of speed-critical deliveries. Pharmaceutical warehouses worth EUR 4.23 billion in 2025 are investing in GDP-certified cold-chain nodes that open premium revenue streams for compliant carriers. Reimbursed prescriptions and willingness to pay for urgent medicines lift margins above general parcels, and insurers increasingly partner with same-day specialists to cut hospital readmissions[2]“IMoGer – Innovative modular mobility made in Germany,” German Aerospace Center, DLR.de.
Expansion of Urban Micro-Fulfillment and Dark-Store Networks
Prime urban land rents, reaching EUR 12.0/m² in Munich, make large depots uneconomical. Automated cube-storage systems process 60-100 picks per hour in facilities under 3,000 m², allowing profitable one-hour service despite high rent. Location clustering provides a moat; networks with three or more nodes per city hit 97% same-day coverage versus 65% for single-site rivals.
Fleet Electrification Incentives and ESG-Led Procurement
Large retailers place ESG clauses in tenders that favor electric fleets and low-emission zones enforce monetary penalties on diesel vans. Federal grants cover up to 80% of depot chargers, trimming the total cost of ownership gap between e-vans and legacy diesel. Early movers benefit from exclusive access to central-city loading bays reserved for zero-emission vehicles.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Nationwide last-mile driver shortage and rising wages | -1.1% | National, with acute shortages in Berlin, Hamburg, Rhine-Ruhr region | Short term (≤ 2 years) |
| Growing city-centre congestion and emission-zone surcharges | -0.7% | Urban centers with emission zones (Berlin, Munich, Hamburg, Cologne) | Medium term (2-4 years) |
| Patchwork municipal rules for sidewalk robots and drones | -0.4% | City-specific regulations varying across 16 federal states | Medium term (2-4 years) |
| Soaring micro-warehousing rents in Tier-1 metros | -0.5% | Munich, Berlin, Hamburg, Frankfurt metropolitan areas | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Nationwide Last-Mile Driver Shortage and Rising Wages
Germany lacks about 70,000 truck and van drivers. Average monthly pay rose to EUR 2,930 in 2025, but candidate inflow remains weak. Carriers limit delivery windows or surcharge peak slots, nudging consumers toward locker pickup. Efficiency tools that cut dwell time by 20 minutes a day per driver can offset almost 7% of the current labor gap[3]“Recommendations for less bureaucracy and faster transport processes,” DVZ Redaktion, DVZ.de .
Growing City-Center Congestion and Emission-Zone Surcharges
Urban kilometers traveled increase faster than road capacity. Low-emission zones levy surcharges that erode margins by up to EUR 1.20 per stop. Electric cargo bikes help, yet payload limits necessitate more trips. Harmonizing curb-use fees and loading slot scheduling across Germany’s 16 states would unlock route density gains, but legislative alignment is slow[4]“Transport and logistics,” Make-it-in-Germany, make-it-in-germany.com.
Segment Analysis
By End User Industry: E-Commerce Leadership Faces Offline Retail Challenge
E-commerce drove 53.21% of revenue in 2024, but brick-and-mortar chains are adopting omnichannel models to curb online attrition. Offline wholesale and retail trade delivers the highest 4.57% CAGR between 2025-2030 as chains like MediaMarktSaturn convert 400 stores into parcel hubs.
Healthcare, though smaller, offers outsized margins due to cold-chain and compliance premiums. Manufacturing leans on emergency parts deliveries to keep lines running, while BFSI uses rapid couriers for sensitive documents.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Strength Meets Cross-Border Opportunity
Domestic flows represented 70.46% of the Germany same day delivery market size in 2024. Integrated locker densities exceed 800 per million residents in Berlin, ensuring 95% population reach within one kilometer.
International revenue, though smaller, logs a 4.55% CAGR between 2025-2030 as single-market EU rules simplify customs. Same-day couriers from Frankfurt now guarantee 8-hour deliveries to Paris or Amsterdam, a proposition valued by biotech exporters.
By Shipment Weight: Light Parcels Dominate Consumer Patterns
Light parcels held 75.31% of Germany same day delivery market share in 2024 as urban consumers favor frequent small orders. The Germany same day delivery market size for medium parcels is rising at 4.22% CAGR between 2025-2030, propelled by consumer electronics and OTC medicines.
Automation makes weight-based sortation cost-neutral, but heavy items stay niche, mainly high-value spare parts where downtime overrides freight cost. Electric cargo bikes carry up to 100 kg payload, covering 14 km median tour length and avoiding congestion fines.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Networks Drive Urban Density
Road carriers generated 51.09% of the Germany same day delivery market size in 2024, supported by an Autobahn network exceeding 13,000 km. AI-enabled dispatch now bundles 15–18 stops per run, up from 11 in 2023, raising van utilization. Air services, record the fastest 4.48% CAGR between 2025-2030 as life-science shippers pay premiums for Frankfurt-anchored next-flight-out options. The Germany same day delivery market recognizes intermodal gains; pilot rail cityhubs cut intra-Berlin parcel transit times 18% in 2025.
Synergy potentials hinge on digital visibility. The EUR 13.7 million (USD 15.11 million) Digital Testbed Air Cargo program shows how AI load forecasting trims ground handling by 30%, bringing runway-to-road handoff within 45 minutes. Meanwhile, the federal fast-charging corridor allows e-vans to operate 450 km daily loops, making suburban same-day coverage viable without diesel top-ups.
Geography Analysis
Germany’s compact geography and dense urban clusters underpin domestic dominance, with Berlin, Hamburg, Munich, and the Rhine-Ruhr corridor accounting for over 60% of same-day stops in 2025. Federal grants of EUR 35.5 million (USD 39.17 million) fund the IMoGer autonomous van pilots now operating mixed passenger-parcel routes in Braunschweig, trimming empty mileage by 12%. High locker penetration—1 locker per 800 residents in Hamburg lets carriers hit 98% first-attempt success, softening driver shortages.
Rural districts, long underserved, are testing AI capacity-matching platforms that pool village-bound parcels onto postal buses. Early pilots in Lower Saxony show 22% cost savings versus dedicated van routes. Domestic saturation encourages expansion along cross-border corridors; by 2030, 14% of Germany same day delivery market revenue will stem from EU neighbors reachable within 400 km. Harmonized VAT and digital customs pre-clearance underpin those flows.
International lanes pivot on Frankfurt Airport’s express bellyhold capacity and Cologne-Bonn’s dedicated cargo slots, enabling sub-12-hour door-to-door times to Benelux, northern France, and western Poland. Pharma exporters especially value thermal mapping services that maintain 2-8 °C compliance across borders, an area where German carriers hold competitive advantage thanks to GDP-certified infrastructure.
Competitive Landscape
Germany’s market is moderately consolidated. DHL Group, GLS, and DPD together command a significant share, yet dozens of regionals and tech-native entrants contest urban niches. Scale alone is no longer decisive; AutoStore-equipped depots lower unit costs by 10%, allowing midsize operators to compete on price while preserving margins. Strategic cooperation is rising: DPD and GLS launched a shared locker network covering 3,000 units nationwide in 2025, lowering ground rents per carrier.
Digital capability is the key differentiator. DHL’s “Strategy 2030” funnels EUR 4 billion (USD 4.41 billion) into AI route planning, container sensors, and predictive staffing that lifts on-time performance to 97%. Start-ups leverage asset-light models, integrating with Milence fast-chargers for pay-per-use e-van fleets. However, life-science and grocery shippers favor incumbents with certified cold-chain, limiting disruption in high-margin verticals.
M&A remains selective. In 2024, two regional same-day specialists merged to reach national coverage, but regulators flagged locker exclusivity risks, underscoring antitrust scrutiny. Looking ahead, carriers that align ESG credentials, locker density, and AI orchestration will secure preferential contracts from retail majors shifting toward omnichannel fulfillment.
Germany Same Day Delivery Industry Leaders
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DHL Group
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International Distributions Services (including GLS)
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La Poste Group
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Otto Group (including The Hermes Group)
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United Parcel Service of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: DPD Deutschland commissioned Bremer Bau to build a green parcel sorting hub in Kaiserslautern, boosting Westpfalz capacity by 50%.
- February 2025: MediaMarktSaturn integrated DPD and GLS parcel shops across nearly 400 German stores, expanding a 2023 pilot.
- January 2025: DPD Germany partnered with myflexbox to link nationwide locker grids, widening consumer pickup options.
- November 2024: DPD and GLS agreed to roll out an open, carrier-agnostic locker network across Germany.
Germany Same Day Delivery Market Report Scope
Air, Road, Others are covered as segments by Mode Of Transport. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Domestic, International are covered as segments by Destination. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Mode of Transport
| Air |
| Road |
| Others |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Destination
| Domestic |
| International |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Mode of Transport | Air |
| Road | |
| Others | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Destination | Domestic |
| International | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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