Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 53.88 Billion |
| Market Size (2026) | USD 57.5 Billion |
| Market Size (2031) | USD 75.95 Billion |
| Growth Rate (2026 - 2031) | 5.72% CAGR |
| Market Concentration | Low |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
Indonesia Road Freight Transport Market Analysis by Mordor Intelligence
The Indonesia road freight transport market is expected to increase from USD 53.88 billion in 2025 to USD 57.50 billion in 2026 and reach USD 75.95 billion by 2031, growing at a CAGR of 5.72% over 2026-2031.
Rising adoption of the National Logistics Ecosystem (NLE) compresses door-to-port cycle times, while Euro-4 diesel standards improve fleet reliability, pushing carriers to modernize equipment. Sulawesi’s nickel-to-battery corridor adds heavy-haul volumes that traditional bulk routes cannot absorb, and the B40 biodiesel mandate stabilizes fuel costs for long-haul carriers. At the same time, pharmaceutical cold-chain growth anchored by Bio Farma’s 1 billion-dose capacity accelerates demand for temperature-controlled trucking, and digital freight platforms aggregate fragmented owner-driver capacity to improve asset utilization.
Key Report Takeaways
- By end-user industry, wholesale and retail trade led with 34.24% of Indonesia road freight transport market share in 2025 and is projected to expand at a 6.58% CAGR through 2031.
- By destination, the domestic segment held 62.88% of the Indonesia road freight transport market size in 2025, while international freight posted the highest CAGR at 6.65% for 2026-2031.
- By truckload specification, full-truck-load operations accounted for 80.19% share in 2025; less-than-truck-load is advancing at a 6.41% CAGR over the forecast period.
- By containerization, non-containerized freight captured 85.42% share in 2025, whereas containerized movements are set to grow at a 5.84% CAGR to 2031.
- By distance, long-haul routes commanded 73.90% of the Indonesia road freight transport market in 2025 and are forecast to rise at a 6.01% CAGR through 2031.
- By goods configuration, solid goods dominated with 64.91% share in 2025; fluid goods are projected to post a 6.04% CAGR to 2031.
- By temperature control, non-temperature-controlled loads represented 94.06% share in 2025, while temperature-controlled freight is projected to increase at a 6.30% CAGR during 2026-2031.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.
Indonesia Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| National Logistics Ecosystem e-clearance accelerating door-to-port cycle times | +1.1% | National, early gains in Jakarta, Surabaya, Semarang | Short term (≤ 2 years) |
| Pharmaceutical cold-chain surge from domestic vaccine & biologics production | +0.6% | Java pharmaceutical clusters, expanding to Batam | Medium term (2-4 years) |
| Mandatory Euro-4 diesel transition improving fleet reliability and resale values | +0.8% | National, phased enforcement across provinces | Medium term (2-4 years) |
| B40 biodiesel mandate stabilizing diesel supply costs for long-haul carriers | +0.5% | National, benefiting inter-island routes | Long term (≥ 4 years) |
| The Sulawesi nickel-to-battery corridor is creating heavy inbound raw-material flows | +0.7% | Central & Southeast Sulawesi, spillover to Kalimantan | Medium term (2-4 years) |
| ODOL phase-out law spurring demand for higher-capacity modular trucksets | +0.4% | National, concentrated in Java-Sumatra corridors | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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National Logistics Ecosystem E-clearance Accelerating Door-to-Port Cycle Times
NLE integrates customs, port operators, and freight forwarders on one digital platform, shrinking documentation processing from three to five days to under 24 hours. Road carriers that previously absorbed idle-time costs now experience faster gate release, improving truck utilization and shortening order-to-cash cycles. Early adopters have reported 18-22% shorter door-to-port intervals. The platform’s alignment with the ASEAN Customs Transit System improves predictability for cross-border trips and supports just-in-time manufacturing. Ongoing rollout to secondary ports will extend these gains beyond Java, fostering broader Indonesia road freight transport market growth.
Pharmaceutical Cold-chain Surge from Domestic Vaccine & Biologics Production
Bio Farma’s annual output already exceeds 1 billion vaccine doses, and capacity is expected to rise to 1.5 billion by 2026 end. These volumes require Good Distribution Practice-compliant transport holding 2-8 °C and real-time monitoring. Kalbe Farma and Indofarma have added biologics lines, doubling demand for refrigerated trailers and data-logger systems. Strict BPOM oversight increases barriers for informal operators, favoring established fleets with validated processes. The cold-chain segment therefore outpaces the overall Indonesia road freight transport market[1]Indonesia Food and Drug Authority, “GDP Guidelines for Pharmaceutical Distribution,” pom.go.id.
Mandatory Euro-4 Diesel Transition Improving Fleet Reliability and Resale Values
Euro-4 fuel improves combustion efficiency, lowering maintenance outlays by as much as 20% and cutting particulate emissions. Secondary-market premiums of 10-15% for compliant trucks incentivize earlier replacement cycles. Fuel-efficiency gains of 8-12% translate into direct operating-cost savings for line-haul carriers. Harmonization with regional standards makes Indonesian trucks compliant with ASEAN cross-border routes, reinforcing integration ambitions. Temporary refinery upgrades have tightened supply, but government coordination with Pertamina safeguards corridor availability[2]Indonesia Ministry of Energy and Mineral Resources, “Euro-4 Diesel and B40 Biodiesel Policies,” esdm.go.id.
B40 Biodiesel Mandate Stabilizing Diesel Supply Costs for Long-Haul Carriers
The B40 program diverts roughly 40% of palm-oil output into biodiesel, cushioning domestic operators against global crude swings. Although energy density falls by 5-7%, stable pricing enables accurate multi-year contract bids and lowers the need for volatile fuel-surcharge clauses. Smallholder farmers gain reliable offtake, embedding agriculture in the logistics value chain, while carriers realize predictable cash-flow planning.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Sharp rise in cargo-theft insurance premiums along Java–Sumatra corridors | −0.6% | Java-Sumatra trunk routes, rest areas | Short term (≤ 2 years) |
| Persistent port gate-out congestion post-privatization extends dwell times | −0.8% | Jakarta, Surabaya, and Semarang major ports | Medium term (2-4 years) |
| Fragmented non-Jasa-Marga toll billing systems are inflating the en-route cost variance | −0.4% | Secondary toll roads outside Java | Long term (≥ 4 years) |
| Sparse LNG refueling network delaying alternative-fuel truck adoption | −0.3% | National, acute outside Java-Bali corridor | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Sharp Rise in Cargo-Theft Insurance Premiums Along Java–Sumatra Corridors
Insurance costs for high-value cargoes have surged 15-20% after an 18-22% uptick in theft incidents. Smaller carriers endure margin compression or shift risk onto shippers, reducing competitiveness. Added expenses for GPS devices, seals, and convoy escorts raise operating costs by another 3-5%. Law-enforcement coordination gaps across provinces enable organized crime to exploit rest-area vulnerabilities, encouraging shippers to mandate advanced security when tendering loads. Market consolidation thus accelerates in the Indonesia road freight transport market.
Persistent Port Gate-Out Congestion Post-Privatization Extending Dwell Times
Container dwell averages four to five days at Jakarta and Surabaya, versus the regional norm of two to three days. Misaligned terminal and trucking schedules, limited staging yards, and non-integrated appointment systems keep trucks queuing for six to eight hours. Working-capital and storage-fee burdens inflate landed costs for manufacturers and erode Indonesia’s competitiveness. Digital community systems remain underutilized because stakeholders protect proprietary data, impeding holistic flow optimization[3]World Bank Indonesia, “Port Efficiency Diagnostic 2024,” worldbank.org .
Segment Analysis
By End-User Industry: Modern Retail and Pharmaceuticals Reinforce Freight Intensity
Wholesale and retail trade accounted for 34.24% of the Indonesia road freight transport market size in 2025, reflecting dense consumer demand across Java’s tier-1 and tier-2 cities. This segment also exhibits the fastest 6.58% CAGR as convenience stores expand and pharmacy chains roll out health-and-wellness lines. Network designs now co-load consumer goods with biologics, intensifying route frequency and boosting vehicle utilization. Manufacturing sustains a steady baseline via automotive hubs in Karawang and electronics clusters in Batam, though exposure to global re-shoring remains a watch point.
Oil and gas, mining, and quarrying benefit from Sulawesi’s nickel upswing and Kalimantan’s coal exports, calling for specialized heavy-haul equipment. Construction freight aligns with ongoing National Strategic Projects, moving cement and steel on predictably scheduled runs. Agriculture and aquaculture adopt refrigerated logistics to capture export premiums for shrimp and mangosteen, while emerging verticals such as data-center construction generate episodic project loads. The overlapping flows collectively support diversified growth in the Indonesia road freight transport market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Scale Meets Cross-Border Momentum
Domestic moves still dominate with a 62.88% share in 2025 as shippers service 6,000 inhabited islands via road-ferry combinations. Toll-road build-out on Java and Sumatra cuts travel times by up to 20%, raising service reliability and underpinning inventory reduction strategies.
However, international volumes into Malaysia, Singapore, and Thailand are expanding faster at a 6.65% CAGR, assisted by NLE-to-ASEAN system interoperability that slashes border waits by roughly 50%. Sea Tollway sailings create predictable intermodal nodes, enhancing domestic route planning, whereas bonded logistics centers near Batam and Medan anchor international consolidation. The Kuala Lumpur-Singapore-Jakarta corridor now supports just-in-sequence deliveries for electronics and pharma, narrowing cost-of-service gaps with ocean freight. These complementary flows anchor resilient expansion for the Indonesia road freight transport market.
By Truckload Specification: Digital LTL Platforms Erode FTL Exclusivity
Full-truck-load retained 80.19% of Indonesia road freight transport market in 2025, driven by bulk palm oil, coal, and nickel ore consignments that naturally fill trailers. ODOL compliance pushes fleets toward multi-axle modular rigs that lift legal payload by up to 30%, enhancing FTL cost competitiveness.
Less-than-truck-load, meanwhile, grows at a brisk 6.41% CAGR as platforms such as Kargo Technologies and Deliveree aggregate SME volumes into optimized multi-drop routes. Algorithmic dispatch and dynamic pricing improve vehicle load factors, lowering per-unit freight for smaller shippers. Established FTL fleets respond by launching hybrid offerings that back-fill empty legs with on-demand LTL loads, blurring category lines. This dual evolution supports healthy diversification within the Indonesia road freight transport market.
By Containerization: Bulk Dominance Sustains Non-Containerized Supremacy
Non-containerized cargo held 85.42% of Indonesia road freight transport market share in 2025, reflecting Indonesia’s commodity bias in palm-oil, coal, and ore shipments. Direct truck-to-store models also favor flexible, open-bed loading for FMCG and building materials. Containerized traffic, however, is rising at a 5.84% CAGR as electronics and automotive exporters demand standardized units for global supply chains.
Port-side inefficiencies prolong container dwell, but NLE e-documentation shortens clearance for shippers integrated into the system. ISO-tank adoption for edible-oil derivatives merges bulk economics with container safety, offering a hybrid path for scale expansion within the Indonesia road freight transport market.
By Distance: Infrastructure Enables Long-Haul Leadership
Long-haul freight commanded 73.90% of the Indonesia road freight transport market in 2025 and is set to grow at 6.01% CAGR. Completion of the Trans-Sumatra expressway and Java Northern Corridor reduces door-to-door times, aligning with just-in-time manufacturing. Telematics adoption trims fuel burn and improves safety, enhancing fleet ROI.
Short-haul operations focus on dense urban deliveries for e-commerce, but congestion and tight delivery windows temper growth. Long-haul security costs rise because cargo-theft hot-spots cluster around rest areas, yet carriers mitigate risks through convoying and GPS monitoring. Infrastructure and regulatory momentum keep long-haul firmly in front within the Indonesia road freight transport market.
By Goods Configuration: Biodiesel Policy Boosts Fluid Segment Trajectory
Solid goods retained a 64.91% share in 2025, underpinned by consumer durables, industrial products, and bulk minerals. Fluid cargoes, propelled by palm-oil-based biodiesel flows, expand faster at a 6.04% CAGR. ISO-tank standardization enables safe, contamination-free movement, but limited cleaning bays elevate barriers to entry, preserving pricing power.
Pharmaceutical liquids and specialty chemicals feed incremental volume growth, while solid goods continue to benefit from packaging innovations that raise cube utilization and cut damage rates. This complementary mix undergirds robust development for the Indonesia road freight transport market.
Note: Segment shares of all individual segments available upon report purchase
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By Temperature Control: Cold-Chain Investment Scales to Meet Pharma Surge
Non-temperature-controlled freight still represents 94.06% of Indonesia road freight transport market in 2025, serving bulk commodities and general merchandise. Yet temperature-controlled consignments are advancing at 6.30% CAGR, driven by vaccine and biologics distribution standards mandating 2-8 °C integrity. Investments in multizone reefers, telematics, and backup power elevate entry thresholds but unlock premium yields.
Convenience-store networks add cold cases for fresh produce, creating daily replenishment lanes that increase asset turns. As food safety regulations tighten, temperature-controlled volumes will capture incremental share, adding resilience to the Indonesia road freight transport market.
Geography Analysis
Java generates 56% of the national GDP, making it the logistical nucleus of the country. The island’s toll-road expansion allows carriers to bypass dense urban nodes, trimming line-haul times by up to 20% and underpinning domestic volumes that dominate the Indonesia road freight transport market. However, cargo-theft risks along Java–Sumatra corridors inflate insurance outlays, and port gate-out delays of four to five days at Tanjung Priok and Tanjung Perak absorb working capital despite NLE gains.
Sulawesi has emerged as a heavy-haul hotspot due to its nickel-to-battery value chain. Smelter capacity exceeding 1.5 million tons per year pulls ore from Central and Southeast Sulawesi pits, generating round-the-clock truck flows over rugged terrain. Road-strengthening and bridge upgrades release latent capacity, yet monsoon disruptions still require seasonal scheduling buffers.
Cross-border corridors into Malaysia, Singapore, and Thailand provide the Indonesia road freight transport market with its fastest growth vector. NLE alignment with ASEAN customs protocols cuts border dwell to four to six hours, while bonded logistics centers in Batam offer duty-suspended staging. Fragmented toll-billing systems outside Jasa Marga’s network, however, create 8-12% route-cost variance, complicating pan-regional planning. The government’s plan to enforce electronic-toll interoperability remains critical to unlocking full cross-border potential.
Competitive Landscape
Indonesia’s road freight sector remains low concentrated, with thousands of owner-drivers sharing lanes with multinationals and digital platforms. Fragmentation persisted historically because shippers valued local relationships and route familiarity, but NLE digitization and ODOL compliance now reward scale, transparency, and capital access. Digital brokerages such as Kargo Technologies publish instant prices and GPS-verified progress, drawing SME shippers away from informal intermediaries.
Fleet modernization is the centerpiece of competitive strategy. Euro-4 trucks lower lifetime maintenance and attract 10-15% resale premiums, motivating operators such as JNE Express and Samudera to accelerate replacement cycles. Cold-chain specialists ally with Bio Farma and Kalbe Farma to lock in multi-year GDP-compliant contracts, bundling transport with monitoring dashboards to satisfy BPOM audits. Heavy-haul niches count on reinforced modular combinations and driver-training programs to handle Sulawesi’s challenging gradients[4]Bio Farma, “Production Capacity Expansion Plan,” biofarma.co.id .
M&A momentum is rising. DSV’s global acquisition of DB Schenker for EUR 14.3 billion (USD 15.59 billion) broadens capability depth in Indonesia and intensifies competition for multinational accounts. Lease-to-own models help larger players onboard independent drivers displaced by ODOL compliance costs, accelerating informal-to-formal migration. These moves point toward gradual concentration even as new digital entrants keep the Indonesia road freight transport market innovative.
Indonesia Road Freight Transport Industry Leaders
NYK Line
Pancaran Group
PT Siba Surya
PT ABM Investama Tbk
PT Repex Wahana (RPX)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- February 2026: FedEx agreed to acquire Europe’s parcel locker and out of home delivery provider InPost in a deal valued at about USD 9.2 billion, expanding its delivery network and last mile capabilities globally.
- November 2025: Pos Indonesia and SiCepat Ekspres officially launched their Integrated Logistics Services to combine networks and systems for end to end deliveries across Indonesia.
- April 2025: DSV acquired DB Schenker for EUR 14.3 billion (USD 15.59 billion), becoming the world’s second-largest logistics group.
- January 2025: JNE Express boosted capacity at its Cengkareng Mega Hub to 1 million parcels per day.
Indonesia Road Freight Transport Market Report Scope
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) 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. 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.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- 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.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- 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.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- 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).
- 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.
- 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.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- 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.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. 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.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays 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.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- 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.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - 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), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport 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.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- 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, and hence road freight transport market size. Therefore, 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.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. 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 |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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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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