Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 53.88 Billion |
| Market Size (2030) | USD 72.25 Billion |
| Growth Rate (2025 - 2030) | 6.04% 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 size stands at USD 53.88 billion in 2025 and is projected to reach USD 72.25 billion by 2030, translating into a 6.04% CAGR between 2025-2030. The expansion is underpinned by 5% national GDP growth in 2024, accelerated toll-road construction that trims transit times between key islands, and a steady rise in e-commerce–related small-lot shipments that tighten truckload utilization. Government investments worth USD 412 billion in National Strategic Projects and the CEISA 4.0 single-window customs platform aim to remove structural frictions, yet logistics costs still equal 24% of GDP, a reminder that fragmentation and high empty-run ratios continue to weigh on profitability. Urbanization is set to jump from 59% in 2025 to 73% by 2045, adding 70 million city dwellers who will amplify freight flows along Java’s industrial corridor as well as tier-2 and tier-3 conurbations. Parallel growth in temperature-controlled traffic, buoyed by cold-storage demand rising 10-20% yearly, forces carriers to modernize fleets while digital freight-matching platforms push up asset-turnover rates and curb empty miles.
Key Report Takeaways
- By end user industry, wholesale and retail trade led with 33.90% of Indonesia road freight transport market share in 2024 and is forecast to expand at a 6.95% CAGR between 2025-2030.
- By destination, domestic routes accounted for 63.30% of 2024 volumes, while international movements are expected to post the fastest 7.04% CAGR between 2025-2030.
- By truckload specification, full-truck-load held an 80.35% revenue share in 2024; less-than-truck-load exhibits a 6.77% CAGR between 2025-2030.
- By containerization, non-containerized freight commanded 85.43% of the Indonesia road freight transport market size in 2024, whereas containerized traffic advances at a 6.17% CAGR between 2025-2030.
- By distance, long-haul services controlled 73.66% of the 2024 value and are expected to grow at a 6.35% CAGR between 2025-2030, outpacing short-haul expansion tied to urban last-mile delivery.
- By goods configuration, solid goods dominated with 65.04% share in 2024; fluid goods register a 6.38% CAGR between 2025-2030.
- By temperature control, non-temperature-controlled consignments made up 94.10% of shipments in 2024, yet temperature-controlled volume increases at 6.65% CAGR between 2025-2030, the segment’s quickest pace.
Indonesia Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Toll-road build-out slashing inter-island transit times | +1.2% | Java-Sumatra corridors, with spillover to Kalimantan | Medium term (2-4 years) |
| 24/7 digital freight-matching platforms boosting asset utilization | +0.8% | National, with early gains in Jakarta, Surabaya, Bandung | Short term (≤ 2 years) |
| Accelerated EV truck adoption driven by 0% luxury-tax policy | +0.6% | Java industrial corridors, expanding to major cities | Long term (≥ 4 years) |
| Government "Agro Gemilang" export push for time-sensitive perishables | +0.4% | Agricultural regions with port connectivity | Medium term (2-4 years) |
| ASEAN customs-single-window raising cross-border trucking volumes | +0.3% | Border provinces, Malaysia-Singapore corridors | Medium term (2-4 years) |
| Tier-2/3 city e-commerce boom inflating short-haul tonnage | +0.7% | Secondary cities across archipelago | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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Toll-Road Build-Out Slashing Inter-Island Transit Times
Indonesia’s 2,816 km operational toll-road network in 2024 links Java’s manufacturing hubs to Sumatra’s resource zones, cutting long-haul trip duration by up to one-third and enabling 24-hour trucking schedules previously blocked by congestion[1]Ministry of Public Works and Housing, “Toll Road Network Status 2024,” pu.go.id. Low present utilization—only 2.5% of logistics vehicles pay tolls—signals headroom once operators weigh time savings against rising tariffs slated for 22 sections in May 2025. National Strategic Projects keep road links at the top of the public-works agenda, even as multilateral agencies urge complementary rail and port upgrades to realize full modal-shift potential. Visibility on predictable door-to-door timing is vital for export manufacturers that run just-in-time inventory, particularly electronics assemblers serving Singapore hub ports.
24/7 Digital Freight-Matching Platforms Boosting Asset Utilization
Real-time marketplaces such as Kargo Technologies aggregate tens of thousands of independent truckers on a single interface, letting shippers source capacity at transparent rates while monitoring loads end-to-end[2]PT Kargo Technologies, “Corporate Profile 2025,” kargo.tech . Automated algorithms cut empty running, slash order-booking lead times from days to hours, and feed location data to enterprise resource planning systems. Adoption is highest among modern retailers that replenish over 35,000 convenience stores on fixed-frequency cycles, demanding tight service-level agreements. For truckers, platform use unlocks faster cash cycles and access to formal finance, helping them fund fleet renewal and comply with evolving emission norms.
Accelerated EV Truck Adoption Driven by 0% Luxury-Tax Policy
The 0% luxury-tax and duty exemptions that run through 2025 bring diesel-to-electric cost parity forward, especially on urban delivery routes under 200 km, where charging downtime aligns with driver rest mandates[3]Ministry of Finance, “Value Added Tax Adjustments 2025,” kemenkeu.go.id. Fleet operators also benefit from reduced VAT on vehicles with 40% local content, a target reachable as domestic battery factories scale output using nickel reserves. The policy dovetails with the B35 biodiesel mandate that inflates diesel pricing, further tilting the total cost of ownership in favor of battery trucks. Early adopters include FMCG distributors around Jakarta, where roadside fast-chargers financed under the PLN “Green Energy Hub” program come online in 2025.
Government “Agro Gemilang” Export Push for Time-Sensitive Perishables
“Agro Gemilang” channels public funds into cold-chain depots that handle 300-500 tons per day, trimming post-harvest losses on fruit and vegetables that historically reached 44%, or USD 4.65 billion yearly[4]Asian Development Bank, “Agricultural Value Chain Development in Indonesia,” adb.org. The scheme couples rural feeder-road paving with port-side refrigerated warehouses, enabling growers in Sulawesi and Kalimantan to meet ASEAN importers’ shelf-life demands. More temperature-controlled truck movements follow as exporters seek door-to-vessel traceability and certification under the Authorized Economic Operator (AEO) program. As compliance spreads, reefer fleet demand scales accordingly.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fragmented owner-driver base limiting pricing power | -0.9% | National, most pronounced in rural areas | Long term (≥ 4 years) |
| 2025 VAT hike escalating operating costs | -0.5% | National, affecting all commercial operations | Short term (≤ 2 years) |
| Chronic driver shortage and aging workforce | -0.7% | National, acute in industrial corridors | Medium term (2-4 years) |
| Rising road-usage charges on overloaded axles | -0.3% | Major highways and toll sections | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fragmented Owner-Driver Base Limiting Pricing Power
Roughly three-quarters of Indonesia’s 1.3 million trucks are owned by single-vehicle operators who bargain individually with heavyweight shippers, diluting margins and slowing fleet renewal. Lack of scale also prevents pooled fuel purchasing or preventive-maintenance contracts that could shave double-digit cost percentages. Digital platforms widen market access yet require data-sharing and formal bookkeeping that many traditional drivers still resist. Without deeper consolidation, the Indonesia road freight transport market will struggle to unlock the efficiencies needed to narrow logistics costs down from today’s 24% of GDP.
2025 VAT Hike Escalating Operating Costs
The nominal VAT rise to 12% in April 2025 keeps the effective rate at 11% through fractional calculations but forces carriers to reconfigure invoicing, compressing cash flow while they await input-tax credits. Smaller haulers lacking ERP systems risk compliance penalties or costly external accounting services. Some may attempt to pass through higher costs, prompting shipper push-back and intensifying price competition in a sector already hindered by razor-thin net margins below 4%.
Segment Analysis
By End User Industry: Wholesale Trade Steers Digital Transformation
Wholesale and retail trade secured the largest 33.90% slice of Indonesia road freight transport market size in 2024 as modern trade and e-commerce coalesced into synchronized, high-frequency delivery loops. The segment’s 6.95% CAGR between 2025-2030 outpaces manufacturing and construction demand, propelled by tier-2/3 city store expansion and consumer appetite for rapid, in-stock fulfillment. Modern retailers issue multi-drop orders that favor route-optimization software, nudging carriers toward platform partnerships.
Manufacturing keeps a steady baseload tied to automotive and electronics clusters, but value growth lags the headline market as supply chains smooth inventory buffers. Construction freight correlates with National Strategic Project outlays on airports, dams, and 2,800 km of new toll routes. Agriculture’s cold-chain renaissance intersects with “Agro Gemilang” hubs, while oil, gas, and mining volumes remain cyclical yet receive resilience from palm-oil derivative flows stimulated by the B35 policy.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance Meets Cross-border Momentum
Domestic consignments retained 63.30% of Indonesia road freight transport market size in 2024 because archipelagic geography necessitates dense inter-island shuttles connecting Java’s consumer belt to outlying supply nodes. Infrastructure rollouts trim Java–Sumatra lead times and spark modal preference toward road for container-on-chassis transfers.
International volume, though smaller, accelerates at 7.04% CAGR (2025-2030) on the back of ASEAN customs convergence that slashes paperwork and port delays. The Single Window links CEISA 4.0 customs and AEO credentials, granting large 3PLs a comparative advantage over fragmented operators. Export-manufacturing zones near Batam exploit proximity to Malaysia and Singapore, booking sealed trucks that cross borders under carnet-like guarantees.
By Truckload Specification: LTL Surge Mirrors Parcel Fragmentation
Full-truck-load (FTL) runs contributed 80.35% of Indonesia road freight transport market share in 2024, mirroring the economy’s bulk-commodity backbone. Most FTL traffic stays on Java–Sumatra corridors moving staples such as cement, coal, and refined palm oils. The Indonesia road freight transport market size for LTL, however, climbs faster at 6.77% CAGR (2025-2030) thanks to e-commerce parcelization, just-in-time retail restocking, and spare-parts distribution.
Platform-enabled pooling eases the cost gap between FTL and LTL, encouraging SMEs to pivot away from inventory-heavy models. Large carriers diversify into hub-and-spoke LTL networks to retain customers migrating toward more granular order sizes, a trend projected to lift LTL revenue beyond 25% of overall market value by 2030.
By Containerization: Standardization Gains Momentum
Non-containerized freight owned 85.43% of shipments in 2024, a legacy of loose-cargo agricultural and mineral exports. Despite dominance, containerized traffic records a 6.17% CAGR (2025-2030) as port-side equipment upgrades simplify box-on-chassis transfers and AEO rules reward tamper-proof packaging. Indonesia road freight transport market size captured by containerized flows grows in tandem with electronics and apparel exports seeking intact, traceable transit.
Operators retrofit chassis fleets with twist-lock mechanisms and install GPS-seal readers to align with customs risk-management programs. The standardization wave also fosters cross-border trucking under the ASEAN Transit System, where the integrity of seal and manifest speeds clearance, underscoring containerization’s rising strategic merit.
By Distance: Long-haul Retains Volume, Short-haul Spawns Innovation
Long-haul moves held 73.66% of the 2024 value due to the sprawl of Indonesia’s production ers and consumer basins and is set to grow at 6.35% CAGR (2025-2030). Toll-road densification and scheduled roll-on/roll-off ferries shrink voyage times, yet fuel-price exposure keeps cost management central. Telematics adoption cuts idle time and enhances real-time ETA sharing for just-in-time supply chains.
Short-haul tonnage expands alongside urban logistics, powered by grocery delivery and rapid-return e-retail models. EV truck incentives and city-center emission-zone plans accelerate fleet electrification on sub-200 km loops. Innovative micro-fulfillment centers spring up in Surabaya and Makassar, anchoring same-day services that prioritize agility over load factor.
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By Goods Configuration: Solid Bulk Still Rules, Fluids Accelerate
Solid goods contributed 65.04% of Indonesia road freight transport market size in 2024, reflecting traditional strengths in textiles, packaged foods, and mining output. Temperature-controlled investment channels into high-value solids—dairy, seafood, and pharmaceuticals—opening premium lanes for reefers.
Fluid goods, from biodiesel feedstock to petrochemicals, post a brisk 6.38% CAGR (2025-2030) as the B35 mandate drives palm-oil tanker trips between refineries and distribution depots. Safety regulations mandate double-hull tankers and telematics-based slosh monitoring, upping capital requirements but also building barriers to entry.
By Temperature Control: Cold-chain Logistics Scales Fast
Non-temperature-controlled cargo still forms 94.10% of 2024 shipments, yet temperature-controlled volumes rank as the market’s fastest climber at 6.65% CAGR (2025-2030). Consumer demand for chilled and frozen foods, coupled with hospital and vaccine distribution needs, fuels reefer-fleet additions of up to 1,200 units annually. Indonesia road freight transport industry players integrate warehouse sensors and blockchain-backed temperature logs to meet traceability norms.
Financing poses the key hurdle: high upfront cost for insulated bodies and undersupply of skilled reefer technicians. Government grants under Agro Gemilang subsidize 30% of reefer purchases for cooperatives, narrowing the entry barrier for SMEs willing to commit to cold-chain discipline.
Geography Analysis
Java, holding 56% of the national GDP in 2024, anchors domestic freight thanks to dense industrial parks and seaports; its toll-road web lets carriers loop Jakarta, Bandung, and Surabaya within one driver shift. Sumatra gains traction as Trans-Sumatra segments open, inviting more east-coast plantations to truck crude palm oil directly to Belawan Port rather than rely on river barges. Kalimantan sees moderate growth tied to nickel-processing plants feeding EV batteries, a trend that will later cascade into higher-value manufactured exports as industrial estates mature.
Eastern Indonesia remains volume-light yet mission-critical for equitable development policy. The Sea Tollway program serviced 34 designated routes in 2024, ensuring weekly Ro-Ro connections that link road hubs in Makassar to remote Maluku and Papua districts, reducing price disparities on staples by up to 20%. As provincial capitals modernize, feeder-truck networks fold into the wider Indonesian road freight transport market, demanding vehicles suited to rugged terrain and limited maintenance infrastructure.
Internationally, Sumatra’s Dumai gateway rides crude-palm-oil tankers headed for Malaysia, whereas Batam stages just-in-sequence truck runs over the Singapore Causeway under new transit guarantees that trim customs stop-time to under three hours. Java-based exporters exploit Tanjung Priok’s CEISA 4.0 expedited lanes, halving clearance time for certified AEO operators. Looking ahead, planned cross-border bridge projects with East Timor and Sabah could reposition truck corridors, unlocking fresh freight geography for carriers agile enough to meet evolving documentation standards.
Competitive Landscape
The Indonesia road freight transport market is fragmented; however, displays a Herfindahl–Hirschman Index well below 1,000, reinforcing its fragmented character as thousands of small owner-operators coexist with a handful of integrated 3PLs. Digital disruptors such as Kargo Technologies, which handles more than 25,000 daily loads for 5,000 shippers, convert that fragmentation into platform liquidity, giving multinational clients the reliability once offered only by asset-heavy incumbents. Legacy players—JNE Express, Samudera Indonesia, and state-linked Pos Indonesia—respond by embedding API-driven booking and IoT tracking into their truck fleets, narrowing the tech gap.
Strategic differentiation shifts toward specialization: CJ Logistics introduces hydrogen-powered tractor pilots on Java runs, targeting shippers under Scope 3 emission audits. DSV amplifies Indonesian footprint after its 2025 purchase of DB Schenker, integrating cross-dock networks and harmonizing TMS platforms to offer end-to-end visibility. Temperature-controlled expertise becomes a premium niche, with domestic carrier Pancaran Group commissioning 200 new reefers supported by government subsidies, aiming at the USD 2.5 billion cold-chain revenue pool forecast for 2030.
Merger and acquistion potential remains high as tight credit and new VAT compliance pressures strain balance sheets of small fleets. Private-equity funds eye roll-up plays that aggregate 400-to-600-truck clusters under unified management, creating the scaled density needed for national contracts and boosting bargaining power against mega-retailers. Combined share of the top-ten firms could climb significantly by 2030 if consolidation follows historical patterns seen in China and India.
Indonesia Road Freight Transport Industry Leaders
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NYK Line
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Pancaran Group
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PT Siba Surya
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PT ABM Investama Tbk
-
PT Repex Wahana (RPX)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: GEODIS rolled out returns-automation and inventory-triage modules across its Southeast Asian e-fulfillment sites, including a 15,000 m² depot in Bekasi.
- April 2025: DSV closed its USD 15.8 billion purchase of DB Schenker, forming the world’s second-largest logistics group and integrating Indonesian trucking assets into a combined global network.
- March 2025: DHL unveiled region-wide EV and battery logistics services, adding certified hazmat warehousing in Jakarta to support electric-vehicle supply chains.
- December 2024: CJ Logistics mapped a hydrogen-truck pilot and Southeast Asian hub expansion strategy, with Indonesia cited as a priority market for zero-emission fleets.
Indonesia Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.
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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