Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 7.86 Billion |
| Market Size (2030) | USD 11.15 Billion |
| Growth Rate (2025 - 2030) | 7.24% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Indonesia Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Indonesia courier, express, and parcel market size is valued at USD 7.86 billion in 2025 and is forecast to reach USD 11.15 billion by 2030, expanding at a 7.24% CAGR (2025-2030). A surge in online shopping, nationwide fiber-optic coverage, and toll-road expansion underpin healthy parcel volume growth. Growing smartphone usage and digital payments continue to shift transactions online, stimulating capacity investments in automated sortation, smart warehouses, and route-optimization tools. Operators increasingly diversify into cold-chain and micro-fulfillment to serve healthcare and quick-commerce clients, while road and air links reduce inter-island transit times. Regulatory initiatives targeting logistics-cost reduction push carriers toward fleet electrification and hub automation that widen efficiency gaps between scale leaders and mid-tier rivals.
Key Report Takeaways
- By destination, domestic parcels held 63.79% of the Indonesia courier, express, and parcel market share in 2024; international shipments are projected to grow at a 7.49% CAGR between 2025-2030.
- By speed of delivery, non-express services led with 66.34% revenue share in 2024, whereas express services are forecast to expand at 7.93% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) deliveries commanded a 56.93% share of the Indonesia courier, express, and parcel market size in 2024; consumer-to-consumer (C2C) deliveries will advance at a 4.19% CAGR between 2025-2030.
- By shipment weight, light-weight parcels captured a 74.71% share in 2024, while medium-weight parcels are projected to post a 5.43% CAGR between 2025-2030.
- By mode of transport, road services accounted for a 69.57% share in 2024, yet air transport will be the fastest-growing mode at a 6.15% CAGR between 2025-2030.
- By end user industry, e-commerce contributed 35.39% of 2024 revenue, and healthcare is set to grow at a 7.60% CAGR between 2025-2030.
Indonesia Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce GMV growth and rising digital payments | +1.8% | National, with concentration in Java and Sumatra | Medium term (2-4 years) |
| Rapid rollout of automated sorting hubs and smart warehouses | +1.5% | Major urban centers: Jakarta, Surabaya, Medan, Makassar | Short term (≤ 2 years) |
| Government "Palapa Ring" and toll-road projects improving inter-island connectivity | +1.2% | National, with priority on eastern Indonesia connectivity | Long term (≥ 4 years) |
| 15-minute hyperlocal delivery models piloted by Q-commerce players | +0.9% | Metro Jakarta, Surabaya, Bandung expansion | Short term (≤ 2 years) |
| Data-driven route-optimization cutting last-mile costs for MSMEs | +0.8% | Tier-2 and Tier-3 cities penetration | Medium term (2-4 years) |
| Micro-fulfilment franchising unlocking Tier-2/3 city penetration | +0.6% | Regional centers: Yogyakarta, Semarang, Palembang | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Explosive E-commerce GMV Growth and Rising Digital Payments
Indonesia’s digital economy channels unprecedented volumes into the Indonesia courier, express, and parcel market as cashless checkouts lift order completion rates. Mobile commerce accounts for well over two-thirds of online sales, reinforcing parcel density on core Java-Sumatra corridors. Social-commerce tie-ups such as Tokopedia–TikTok accelerate order frequency among younger demographics. Fintech lending broadens working-capital access for micro-sellers, expanding the shipper base across secondary cities. Reduced failed-delivery rates translate into lower unit costs and higher driver productivity, supporting margin stability despite intense price competition[1]Ministry of National Development Planning, “Narasi RPJMN 2020-2024,” bappenas.go.id.
Rapid Rollout of Automated Sorting Hubs and Smart Warehouses
Carriers deploy cross-belt sorters, vision scanners, and AI-driven warehouse-management systems to cope with double-digit volume growth. A flagship Jakarta hub now processes 7,200 parcels per hour, quadrupling manual throughput[2]Interroll Group, “Café Amazon Success Story,” interroll.com. Automation cuts missorts, curtails re-handling labor, and generates real-time data that feeds dynamic-routing engines. Operators replicate modular systems in Surabaya, Medan, and Makassar, creating a nationwide grid of high-velocity nodes that shorten fulfillment cycles. Early movers bolster service reliability, strengthening customer stickiness in the Indonesia courier, express, and parcel market.
Government “Palapa Ring” and Toll-Road Projects Improving Inter-Island Connectivity
Completion of the 13,000-km fiber backbone delivers 4G connectivity to remote islands, enabling end-to-end tracking and electronic proof-of-delivery even in rural regencies[3]Kementerian Koordinator Bidang Kemaritiman dan Investasi, “UU 59/2024: Rencana Pembangunan Jangka Panjang Nasional 2025-2045,” jdih.maritim.go.id. Parallel toll-road additions lower average transit times on primary Java trunk routes to under 18 hours and reduce fuel burn. The long-term logistics roadmap embeds maritime-port upgrades and cabotage enforcement that improve coastal feeder reliability. Together, physical and digital infrastructure push service levels close to metro standards across the archipelago, stimulating latent demand in eastern Indonesia.
15-Minute Hyperlocal Delivery Models Piloted by Q-commerce Players
Instant-needs platforms locate micro-fulfillment centers within 3 km of dense urban catchments. Driver fleets switch seamlessly between ride-hailing and parcel drop-offs, lifting asset utilization. Premium fees offset small-basket economics, and predict-and-place algorithms fine-tune real-time inventory. As consumer expectations converge around sub-hour delivery, established CEP brands form partnerships with q-commerce apps to secure traffic pipelines and retain wallet share in the Indonesia courier, express, and parcel market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Intensifying price war compressing margins | -0.7% | National, with acute pressure in Java corridor | Short term (≤ 2 years) |
| Foreign-equity cap (49%) on courier licences deterring FDI | -0.5% | National regulatory framework affecting all provinces | Long term (≥ 4 years) |
| Shortage of insured couriers raising social-license risk | -0.3% | Urban centers with high accident rates and labor disputes | Medium term (2-4 years) |
| Minimum-value import rule (USD 100) throttling cross-border parcels | -0.2% | International gateways: Jakarta, Surabaya, Medan | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Intensifying Price War Compressing Margins
Aggressive discounting by platform integrators narrows net yields below sustainable thresholds for mid-tier operators. Subsidized delivery fees attract volume but erode profitability, driving prolonged cash burn across the Indonesia courier, express, and parcel market. VAT hikes compound pressure as carriers struggle to pass on higher tax outlays to price-sensitive consumers. Anticipated consolidation may relieve the immediate squeeze yet raises antitrust concerns and heightens the sector’s exposure to coordinated pricing shifts[4]Badan Pembinaan dan Pengembangan Hukum Pemeriksaan Keuangan Negara, “Perpres No. 12 Tahun 2025,” peraturan.bpk.go.id.
Foreign-Equity Cap (49%) on Courier Licences Deterring FDI
Global integrators face structural hurdles when seeking controlling stakes in Indonesian operations. Mandatory local majority ownership complicates decision-making and delays capital allocations for automation and cold-chain upgrades. While joint ventures expand domestic know-how, limited foreign capital inflows may slow the diffusion of best-practice technology, constraining service quality convergence with advanced ASEAN peers.
Segment Analysis
By End User Industry: Healthcare Logistics Climbs the Priority Ladder
E-commerce retained the biggest 35.39% slice in 2024, yet margin headroom narrows as free-shipping campaigns continue. Mass fulfillment requirements justify ongoing investment in mega-sort centers and smart lockers.
Healthcare will accelerate at a 7.60% CAGR between 2025-2030, bolstered by pharmaceutical cold-chain mandates and chronic-disease medication adherence programs. Operators with GDP-certified depots and temperature-controlled fleets leverage premium rates that dilute the sector’s exposure to margin-squeezing retail shippers.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Shipments Retain Primacy amid Expanding Cross-Border Flows
Domestic consignments generated 63.79% of 2024 revenue, reaffirming the Indonesia courier, express, and parcel market as a home-focused arena anchored by Java and Sumatra demand clusters. Infrastructure upgrades, such as the 2,816 km toll-road network, cut intra-island lead times and support next-day ground services. The segment benefits from scaled pickup density, enabling competitive tariffs and dense route structures.
International traffic will log a 7.49% CAGR between 2025-2030 as social-commerce exporters tap regional buyers and free-trade agreements reduce tariff friction. Regulatory headwinds remain, notably the USD 100 de-minimis limit, yet tech-enabled customs clearance and bonded e-hubs partly offset compliance friction. Carriers bundle cross-border tracking with localized returns to capture fashion and beauty merchants eyeing ASEAN penetration.
By Speed of Delivery: Express Services Capture Urban Wallet Share
Non-express services still hold 66.34% market share, serving budget-conscious consumers across 6,000-plus inhabited islands. Network reach and lower last-mile wages keep ground options attractive, especially for heavier parcels.
Express values are expected to rise 7.93% CAGR between 2025-2030, driven by hyper-urban lifestyles and the B2C sector’s promise-date guarantees. AI-driven routing and urban consolidation hubs shave city-center drop-times to under four hours, enabling premium pricing. Riders equipped with electric two-wheelers support emission-reduction goals and position carriers for ESG-linked contracts.
By Shipment Weight: Light Parcels Anchor Volume, Medium Parcels Gain Traction
Lightweight parcels contributed to 74.71% of 2024 revenue, mirroring the consumer-electronics and fashion mix that underpins the Indonesia courier, express, and parcel market. Density-based pricing incentivizes compact packaging, boosting vehicle fill rates.
Medium parcels are projected to grow at a 5.43% CAGR between 2025-2030 as household bulk-buying and B2B replenishment orders take hold in fast-developing tier-2 cities. Automated sorters now handle parcels up to 15 kg without manual diversion, preserving throughput consistency.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Backbone Dominates While Air Extends Reach
Road transport accounted for 69.57% of 2024 revenue on the back of improved highways and island-hopping roll-on/roll-off ferries. Fleet telematics reduces idle fuel burn and enables dynamic re-routing during weather disruptions.
Air transport, projected to rise 6.15% CAGR between 2025-2030, fills urgency niches and connects eastern archipelagic provinces where maritime schedules remain sparse. Express integrators co-load parcels onto passenger flights, optimizing belly-hold capacity while safeguarding delivery-window guarantees.
By Model: B2C Leads, C2C Emerges as Supplementary Growth Lever
Business-to-consumer (B2C) held 56.93% of 2024 revenue, reinforcing how marketplace platforms and brand.com stores dominate parcel flows. Large shippers negotiate volume-based rebates, steering demand toward scale carriers.
Consumer-to-consumer (C2C) consignments, though smaller, advance at a 4.19% CAGR between 2025-2030 as social-commerce and preloved goods trade widen addressable senders. User-friendly booking apps and QR-code drop boxes empower individuals to ship nationwide without branch queues, capturing incremental share without heavy infrastructure outlay for operators.
Geography Analysis
Java and Sumatra delivered the lion’s share of 2024 parcel flows owing to dense populations, established highways, and high e-commerce penetration. The Indonesia courier, express, and parcel market size generated from these two islands supports multiple daily line-haul departures and near-saturation pickup coverage. Eastern provinces, though sub-scale, register double-digit growth as fiber connectivity and pioneer shipping programs unlock consumer access.
Kalimantan gains strategic relevance with the phased relocation of the national capital city, prompting logistics zoning incentives and bonded-hub proposals that favor first movers. Sulawesi’s processing industries introduce stable B2B volumes, while Maluku and Papua remain dependent on subsidized freight schemes and modular warehousing solutions to offset low shipment densities.
Cross-border flows concentrate at Jakarta’s Soekarno-Hatta, Surabaya’s Juanda, and Medan’s Kualanamu gateways, funnelling parcels to Malaysia, Singapore, and China. Trade-facilitation reforms under the 2025-2029 Medium-Term Plan seek to digitize customs and accelerate pre-clearance, reducing dwell times and broadening SME export participation.
Competitive Landscape
The Indonesia courier, express, and parcel market features moderate consolidation with domestic champions J&T Express, JNE, and SiCepat anchoring share positions. Each maintains proprietary hubs, franchise pickup outlets, and technology stacks that manage daily shipment peaks above 3 million pieces. Integrated platforms GoTo and Grab leverage super-app ecosystems to channel ride-hailing drivers into last-mile duties, melding real-time demand pools. A potential Grab-GoTo merger valued at USD 25 billion would unite databases, driver fleets, and fulfillment assets, reshaping bargaining power with merchants and raising regulatory scrutiny.
Automation arms-race dynamics spur multi-year capex cycles: J&T rolled out optical-scanner sorters nationwide, while JNE upgraded Kalimantan throughput following the Cahaya Logistics acquisition. SiCepat collaborates with state lender Bank Mandiri to embed MSME financing within its booking app, widening stickiness in the C2C pocket.
White-space niches attract specialized entrants. Lion Parcel positions as a cold-chain partner for vaccine distributors, and RPX expands a franchise model in tier-2 locales that mainstream brands under-serve. Global giants UPS, DHL, and FedEx operate under local-partnership work-arounds that limit equity exposure but provide technology transfer and premium express channels.
Indonesia Courier, Express, And Parcel (CEP) Industry Leaders
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J&T Express
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JNE Express
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SiCepat Ekspres
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Ninja Express
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Pos Indonesia
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- August 2025: Lion Group inaugurated the 6,000 m² Lion Hub Halim facility to streamline first-mile through last-mile parcel flows in Greater Jakarta.
- April 2025: DHL Group earmarked EUR 500 million (USD 551.82 million) of a wider EUR 2 billion (USD 2.20 billion) Life Sciences & Healthcare investment for Asia-Pacific cold-chain network upgrades.
- April 2025: FedEx introduced FedEx Surround®, an AI-driven monitoring suite that enhances real-time shipment visibility for Indonesian customers.
- January 2025: Grab Holdings and GoTo Group restarted advanced merger talks targeting completion within 2025, aiming to create a unified logistics-to-payments platform.
Indonesia Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Destination
| Domestic |
| International |
Speed of Delivery
| Express |
| Non-Express |
Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Mode of Transport
| Air |
| Road |
| Others |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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