India 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 1.89 Billion |
| Market Size (2030) | USD 3.26 Billion |
| Growth Rate (2025 - 2030) | 11.58% 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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India International Express Service Market Analysis by Mordor Intelligence
The India international express service market size stands at USD 1.89 billion in 2025 and is forecast to reach USD 3.26 billion by 2030, expanding at an 11.58% CAGR over 2025-2030. Rapid cross-border e-commerce growth, urgent pharmaceutical exports, and policy incentives under the Foreign Trade Policy 2023 are the primary demand accelerators. Major gateway airports in Mumbai, Delhi, and Chennai handle the bulk of outbound flows, yet slot scarcity forces carriers to redesign networks and leverage secondary hubs. Technology investments in AI-assisted customs clearance, predictive analytics, and temperature-controlled logistics are becoming clear differentiators, while ESG-driven carbon levies pressure operators to optimize aircraft utilization and adopt greener ground operations. SMEs entering global marketplaces add high-frequency, light-weight volumes, but fragmented last-mile infrastructure in Tier-II cities elevates return rates and squeezes margins.
Key Report Takeaways
- By end user industry, e-commerce held a 40.51% of the India international express service market share in 2024, while healthcare is projected to expand at a 12.73% CAGR between 2025-2030.
- By shipment weight, light-weight parcels commanded 68.88% of the India international express service market size in 2024, whereas medium-weight parcels are forecast to grow at an 11.00% CAGR from 2025-2030.
- By route, inter-region shipments accounted for 74.57% of the India international express service market share in 2024; intra-region services are advancing at a 9.77% CAGR between 2025-2030.
India International Express Service Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cross-border B2C e-commerce boom | +2.8% | US-India, UAE-India, EU-India | Medium term (2-4 years) |
| Trade facilitation under FTAs and Make-in-India | +2.1% | US, EU, ASEAN corridors | Long term (≥ 4 years) |
| SME export digitalization via marketplaces | +1.9% | Gujarat, Maharashtra, Karnataka | Medium term (2-4 years) |
| Urgent pharma and healthcare logistics demand | +2.3% | US and EU-bound lanes | Short term (≤ 2 years) |
| Gift-City duty-payment corridors | +1.2% | Western India | Long term (≥ 4 years) |
| Bonded trucking to Tier-II air hubs | +1.1% | Coimbatore, Kochi, Pune, Ahmedabad | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Cross-Border B2C E-Commerce Boom
Cross-border B2C transactions already represent roughly one-fifth of global e-commerce flows, and Indian consumers are increasingly purchasing international brands unavailable locally. The Foreign Trade Policy 2023 designated 1,015 Dak Niryat Kendras, creating spoke origins that funnel parcel density into integrator hubs. Express carriers gain larger average shipment values but must tackle more complex customs documentation and duty collection workflows. Payment-gateway integration lowers checkout friction, and marketplace APIs transmit shipment data directly into carrier systems, reducing entry errors and dwell times. As a result, the India international express service market is capturing higher yield per kilogram along these corridors, incentivizing capacity deployment on lightweight, high-value segments[1]“India – Express Delivery,” Privacy Shield, privacyshield.gov.
Trade Facilitation under FTAs and Make-in-India
Recent bilateral trade pacts have trimmed documentary requirements to just three key shipping documents, accelerating clearances by up to 24 hours. The electronics, pharmaceuticals, and auto-components clusters created under Make-in-India rely on time-definite logistics to preserve competitive lead times. Duty Drawback, RoDTEP, and RoSCTL schemes now extend to express consignments, leveling the playing field with traditional freight modes. These regulatory tailwinds position the India international express service market as a preferred conduit for MSME exporters seeking agility in volatile demand environments. Network providers are responding with service tiers optimized for factory-to-door export lanes, bundling brokerage, landed-cost calculators, and shipment-visibility dashboards[2]“Amendment to Courier Imports & Exports Regulations 2024,” TaxGuru, taxguru.in.
SME Export Digitalization via Marketplaces
Courier exports reached INR 7,995 crore (USD 960 million) in FY 2022-23, of which e-commerce sellers contributed INR 3,510 crore (USD 421 million). Automated HS-code classification, e-invoicing, and duty calculators embedded in marketplace workflows simplify international compliance and shorten door-to-door cycle times for SMEs. Carriers increasingly offer API-led quoting, pick-up scheduling, and real-time exception alerts tailored to marketplace volumes. Predictable shipment profiles enable integrators to configure consolidations that raise aircraft load factors and reduce unit costs, deepening the value proposition of the India international express service market for first-time exporters.
Urgent Pharma and Healthcare Logistics Demand
India supplies 62% of the world’s vaccines and aims for USD 130 billion in pharmaceutical output by 2030, with more than 60% oriented toward export markets. Time- and temperature-sensitive consignments demand GDP-compliant packaging, real-time temperature logging, and priority clearance windows. UPS Premier’s nationwide roll-out in 2025 added redundant cold-chain nodes in Hyderabad, Mumbai, and Bengaluru, trimming average transit times to regulated destinations by 8-12 hours. These investments increase revenue-per-kilo and reinforce the premium-service tier of the India international express service market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High customs duties and complex documentation | -1.8% | Major gateway airports | Short term (≤ 2 years) |
| Limited international cargo slots | -2.1% | Mumbai, Delhi, Chennai | Medium term (2-4 years) |
| Fragmented import last-mile | -1.4% | Tier-II/III cities | Medium term (2-4 years) |
| ESG-driven carbon cost escalation | -1.2% | Long-haul lanes | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Customs Duties and Complex Documentation
An average applied tariff of 11.9% plus landing fees, countervailing duties, and compliance certificates elevate total landed cost. Separate Bill of Entry filings for consignments above USD 150 intensify brokerage workloads and lengthen clearance times. Carriers deploy licensed brokers in-house and pre-arrival data filing to minimize dwell, but extra handling inflates cost-to-serve for price-sensitive shippers, moderating the growth trajectory of the India international express service market[3]“Mumbai airport to suspend freighter flights from Aug 16 due to runway repair,” The Economic Times, economictimes.indiatimes.com.
Limited International Cargo Slots at Major Airports
Freighter suspensions at Mumbai from August 2025 cut weekly cargo capacity by roughly 12%. Slot preferences for passenger belly space further crowd out dedicated express flights, compelling operators to stage feeds into night-bank departures or detour through Colombo and Dubai. Resulting connection risk can erode on-time performance and strain customer SLAs, dampening service uptake among high-demand verticals like fashion retail that rely on rigid launch calendars[4]“The Impact of 5G on Logistics and E-commerce Fulfillment in India,” Ecom Express, ecomexpress.in.
Segment Analysis
By End User Industry: Healthcare Drives Premium Growth
The healthcare segment captured 12.73% of incremental revenue in 2024 and is forecast to advance at a 12.73% CAGR between 2025-2030, outpacing all other industries. Pharma exporters lean on GDP-certified handling, ensuring the India international express service market size for healthcare consignments rises disproportionately to volume. Network enhancements such as UPS Premier’s sensory-based temperature tracking underpin confidence in lane integrity and unlock higher average yields. E-commerce retains a 40.51% revenue share owing to marketplace-driven parcel surges, yet its growth rate stabilizes as customs and duty-collection rules mature. Wholesale/Retail trade and BFSI contribute steady documentation flows, while manufacturing leverages express mainly for prototypes, repair parts, and high-value electronics.
Growing diversification within pharmaceuticals—ranging from biologics to cell-and-gene therapies—necessitates specialized cold-chain assets. Carriers embed thermal mapping, active containers, and redundant data loggers to comply with stringent U.S. FDA and EU GDP audit trails. These investments inflate cost structures but elevate the India international express service market share for premium service tiers. Conversely, SME fashion exporters capitalize on simplified RoDTEP claims, fueling predictable small-parcel demand with lower service intensities. Integrated operators tailor product bundles premium healthcare, standard e-commerce, and deferred manufacturing—to balance yield management and fleet utilization.
Note: Segment shares of all individual segments available upon report purchase
By Shipment Weight: Medium Weight Gains Momentum
Light-weight parcels dominate the India international express service market at 68.88% in 2024, a legacy of document dispatches and small-item B2C orders. However, medium-weight shipments are gaining traction, expanding at an 11.00% CAGR between 2025-2030 as exporters consolidate multiple SKUs into single consignments to optimize duty thresholds. Automated sortation at TCI Express’s GIGA hub boosts processing speed by 40%, enabling competitive transit times even for heavier payloads. The India international express service market size tied to medium-weight flows thus rises faster than parcel counts, reinforcing the importance of mechanized hubs and high-loader aircraft.
Heavy-weight consignments occupy a niche in aerospace spares, semiconductor machinery, and high-value capital goods. Though representing under 7% of volumes, these shipments attract premium tariffs, cushioning margin volatility when e-commerce peak season discounts compress yields. Operators deploy load-planning software that pairs heavy units with empty return legs to balance volumetric and actual weight, sustaining profitability.
Note: Segment shares of all individual segments available upon report purchase
By Route: Intra-Region Momentum Builds
Inter-region corridors (principally to the US, UAE, and EU) held 74.57% of the India international express service market share in 2024. Mature customs interfaces, stable demand profiles, and high-density trade drive this dominance. Yet intra-region flows within South Asia, Southeast Asia, and the Middle East are projected to climb at a 9.77% CAGR between 2025-2030, reflecting evolving regional value chains. Bonded trucking corridors feeding Pune, Coimbatore, and Kochi expedite uplift for exporters, shaving 6-8 hours from door-to-door timelines and improving SLA adherence. Gift-City’s duty-deferral scheme further catalyzes short-haul precious-metal and document traffic, aligning with time-critical banking cut-offs and jewelry export peaks.
Network planners recalibrate fleet allocation, assigning narrow-body freighters to short-haul night banks while retaining wide-bodies on trans-Pacific and trans-Atlantic pulls. Real-time slot auctions and dynamic airway-bill pricing mitigate slot scarcity risks, ensuring capacity remains synchronized with demand surges. The India international express service market thus morphs into a dual-engine model: long-haul lanes sustaining scale, and intra-region lanes delivering growth agility.
Geography Analysis
India’s outbound express flows remain anchored in five lanes: US (15% of exports), UAE (11%), Hong Kong (5%), China (4%), and UK (3%). Mumbai, Delhi, and Chennai airports collectively handle nearly 70% of international uplift, but runway works and slot re-prioritization for passenger traffic continually disrupt freighter schedules. Integrators increasingly rely on Bengaluru and Hyderabad to hedge slot volatility, and bonded trucking networks pump volumes from Ahmedabad, Pune, and Coimbatore into these alt-gateways overnight. Once Navi Mumbai opens in 2026 with 2.6 million tons of annual capacity, carriers expect a structural reduction in slot bottlenecks, although primary gateways will still command price premiums for day-time slots that dovetail with U.S. east-bound connections.
Regional trade with ASEAN, SAARC, and GCC markets grows rapidly under reduced tariff regimes. Chennai-Colombo, Kochi-Dubai, and Delhi-Kathmandu flight pairs doubled between 2024-2025 as per Directorate General of Civil Aviation schedules, feeding intra-region express demand. Short-haul lanes offer higher frequency and lower carbon intensity, buffering carriers against long-haul cost shocks from potential SAF mandates. At the same time, Tier-II city clusters like Surat (gem polishing) and Tiruppur (knitwear) introduce predictable mid-weight loads, pushing carriers to adopt spoke-and-spoke models that avoid metro congestion altogether.
Last-mile performance diverges widely: metro on-time delivery averages 96%, whereas Tier-III districts struggle at 82%, mainly due to sparse address data and low first-attempt success. SaaS route-optimization and real-time courier apps elevate performance, but physical infrastructure gaps—narrow roads, low warehousing density—still hamper cycle-time reliability. Over the forecast horizon, government initiatives like Bharatmala road upgrades and 5G rollout are poised to narrow these disparities, indirectly lifting the overall service quality across the India international express service market.
Competitive Landscape
The India international express service market is moderately consolidated; the top five integrators—DHL, FedEx, UPS, Blue Dart, and Delhivery collectively account for a significant share of revenue in 2024. Global players leverage robust international networks and IT stacks, while domestic incumbents exploit deep first-mile reach and flexible cost structures. Innovation cycles are shortening: DHL’s MyGTS AI-assisted HS-code lookup slashes customs entry errors by 15%, enhancing clearance reliability for SMEs. FedEx’s USD 100 million stake in Delhivery in 2024 connected intercontinental uplift with the latter’s 19,000-pin-code last-mile footprint, illustrating the hybridization of global reach and local agility.
Automation and visibility technologies dominate capex agendas. TCI Express deployed optical character recognition and automated parcel measurement at its Gurugram GIGA hub, slicing average sort-to-load time from 180 to 108 minutes. UPS Premier embeds SenseAware ID sensors into every healthcare parcel, achieving lane-level visibility and proactively averting temperature excursions. These upgrades justify premium tariffs, particularly in the healthcare vertical where product spoilage costs are catastrophic.
Capacity management remains a competitive differentiator amid slot shortages. Players with secured, long-term night-bank allocations at primary gateways sustain superior on-time performance metrics. Others negotiate block-space agreements with combination carriers or charter mini-freighters out of secondary airports to protect service reliability. Environmental commitments increasingly factor into tender evaluations; DHL India pledged carbon-neutral ground operations by 2030, influencing shipper procurement policies aligned with ESG scorecards.
India International Express Service Industry Leaders
-
Aramex
-
DHL Group
-
FedEx
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United Parcel Service of America, Inc. (UPS)
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Blue Dart Express Ltd.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: UPS Premier extended its temperature-controlled network across India to meet stringent pharma export timelines.
- February 2025: Delhivery finalized the INR 1,407 crore (USD 169 million) takeover of Ecom Express, creating India’s largest integrated last-mile network.
- January 2025: DTDC and Aramex launched a strategic alliance to link India with Middle East markets through mesh-routed parcel flights.
- October 2024: UPS Healthcare opened a GDP-compliant facility in Hyderabad, boosting vaccine and biologic export capacity.
India 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.| 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 |
| 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 |
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
