Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.68 Billion |
| Market Size (2030) | USD 2.24 Billion |
| Growth Rate (2025 - 2030) | 5.98% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Malaysia Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Malaysia courier, express, and parcel market size stands at USD 1.68 billion in 2025 and is projected to reach USD 2.24 billion by 2030, expanding at a 5.98% CAGR over 2025-2030. Solid parcel volume growth stems from expanding e-commerce, rapid adoption of cash-less payments, and government programs that simplify cross-border clearance. Operators are investing in AI-enabled sorting, electrified fleets, and dark-store partnerships to improve delivery speed while managing the 56% spike in diesel prices that followed subsidy reforms in 2024. Competitive intensity has forced pricing discipline below a 5% industry-wide operating margin, yet scale advantages and technology deployments are beginning to restore profitability for larger firms such as J&T Express, which reported USD 110 million in regional net profit for 2024. The Malaysia courier, express, and parcel market is additionally buoyed by healthcare logistics demand, with pharmaceutical cold-chain shipments outpacing other verticals. Geographically, Klang Valley remains the epicenter of parcel flows thanks to proximity to KLIA and Port Klang, whereas East Malaysia continues to wrestle with addressing gaps and multimodal constraints.
Key Report Takeaways
- By destination, domestic deliveries captured 64.94% of the Malaysia courier, express, and parcel market share in 2024, while international shipments are advancing at a 6.20% CAGR between 2025-2030.
- By speed of delivery, express services are accelerating at a 6.88% CAGR between 2025-2030, even though non-express held 75.60% share of the Malaysia courier, express, and parcel market size in 2024.
- By model, the business-to-consumer segment commanded 54.07% share in 2024; consumer-to-consumer values represent the fastest clip, growing at 4.33% CAGR between 2025-2030.
- By shipment weight, Light-weight parcels represented 68.74% of all values in 2024, whereas heavy-weight consignments are forecast to expand at 4.62% CAGR between 2025-2030.
- By mode of transport, road retained 51.64% modal share in 2024; air shipments are increasing at a 5.09% CAGR between 2025-2030 on the strength of cross-border e-commerce demand.
- By end user industry, healthcare logistics accounted for the quickest end-user expansion at 6.28% CAGR between 2025-2030, while e-commerce remained the largest demand center with a 38.35% slice of the Malaysia courier, express, and parcel market size in 2024.
Malaysia Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom and digital-native expectations | +1.8% | Nationwide; strongest in Klang Valley and Penang | Short term (≤ 2 years) |
| Government-backed Digital Free Trade Zone | +1.2% | National; focused on KLIA and major ports | Medium term (2-4 years) |
| Instant-delivery dark stores | +0.9% | Klang Valley with spillover to Johor and Penang | Short term (≤ 2 years) |
| AI-driven sorting hubs and route planning | +0.7% | Early roll-outs in major urban centers nationwide | Medium term (2-4 years) |
| Electrification of last-mile fleets | +0.5% | Peninsular Malaysia first, then East Malaysia | Long term (≥ 4 years) |
| ASEAN 3-5-day economy-parcel corridors | +0.6% | National; border focus on Thailand and Singapore | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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E-commerce Boom and Growing Digital-Native Consumer Expectations
Online retail is forecast to reach USD 23.93 billion by 2030, with cross-border orders forming 40% of all transactions, a mix that reshapes line-haul planning and parcel mix. Ninety-plus percent internet penetration and mobile wallets have increased cash-on-delivery uptake to roughly 20% of orders, compelling couriers to refine reverse-logistics cash collection workflows. Seasonal peaks during Lunar New Year and Ramadan force temporary capacity layering, nudging operators to install pop-up sorting lines near Kuala Lumpur. Social-commerce live-streaming adds volume volatility and squeezes margins because of lower average parcel value, prompting network densification and dynamic routing. As a result, the Malaysia courier, express, and parcel market is skewing toward frequent, low-weight shipments that demand scalable automation[1]“Government Implements Targeted Diesel Subsidy For Peninsular Malaysia Effective 10 June 2024,” Ministry of Finance Malaysia, mof.gov.my.
Government-Backed Digital Free Trade Zone Accelerating Cross-Border Fulfillment
The ePAM regime allows simplified declarations two hours before aircraft arrival for parcels under RM500 CIF, triggering near-instant release and trimming dwell time at KLIA, Penang, and Kuching. Seven airports are now live on the system, creating a decisive advantage for carriers with air-freight partnerships and customs brokerage depth. ASEAN Express rail pilots linking Malaysia to Chongqing promise 9-day transit, underscoring the administration’s bid to anchor regional logistics. However, because the RM500 threshold applies only to air, sea freight and trucking remain administratively heavier, preserving an air-centric bias in the Malaysia courier, express, and parcel market. Operators with multimodal reach are lobbying for parity to unlock further cost savings[2]“Statistics,” Malaysian Communications and Multimedia Commission, mcmc.gov.my.
Rapid Expansion of Instant-Delivery Dark Stores in Klang Valley
Micro-fulfillment centers have mushroomed, allowing 2-hour grocery and essentials delivery within a 100 km radius. Such density lifts stop-per-mile efficiency and curtails unit cost, but capital intensity and inventory spoilage risk keep break-even volumes high. Grab’s move into East Malaysia via Everrise supermarkets signals geographic diversification; yet Sarawak’s dispersed population limits unit-economics headroom. Peak performance hinges on accurate demand forecasting and SKU rationalization to shrink pick times. Consequently, couriers partner with retailers to co-design slot-based delivery promises that protect the Malaysia courier, express, and parcel market brand reputation for speed.
Network Optimization via AI-Driven Sorting Hubs and Route Planning
DHL’s EUR 60 million (USD 66.21 million) KLIA facility, opened October 2024, sorts with machine-vision scanners, halving manual touches and trimming mis-sorts by 90%. FedEx applies predictive ETA algorithms that raise delivery-time accuracy by nearly 48%. City Brain traffic-control pilots in Kuala Lumpur reduce travel time by 12%, feeding real-time data to dispatch platforms. Smaller carriers lacking capex scale partner through shared-facility alliances. AI adoption is boosting capacity headroom without proportional staff increases, reinforcing cost leadership for market front-runners.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Sub-5% operating margin pressure | -1.4% | Nationwide; fiercest in urban corridors | Short term (≤ 2 years) |
| Rural addressing gaps in East Malaysia | -0.8% | Sabah and Sarawak remote districts | Long term (≥ 4 years) |
| Double-digit fuel-surcharge volatility | -0.6% | National; heavier impact on long-haul lanes | Short term (≤ 2 years) |
| Customs bottlenecks for low-value imports | -0.4% | Airports and seaports with constrained ground staffing | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Sub-5% Operating Margin Pressure from Intense Price Wars
A fragmented vendor field has triggered tariff undercutting that keeps net margins under the 5% threshold even as diesel prices jump 56% post-subsidy removal. Large-scale players exploit automation and contract fuel hedging to ride out volatility, whereas small firms lack leverage and are exiting or consolidating. The SKDS 2.0 relief card offsets some diesel cost for eligible fleets, but allocation ceilings leave many operators partially exposed. Peak-season surcharges provide fleeting relief, making cost-to-serve discipline and yield management crucial for the Malaysia courier, express, and parcel market[3]“Electronic Pre-Alert Manifest (ePAM),” Royal Malaysian Customs Department, customs.gov.my.
Rural Addressing Gaps in East Malaysia Causing Delivery Retries
Sabah and Sarawak’s riverine terrains require boat or rural air service to 11 STOLports, doubling handling cycles and inflating cost per parcel. Absence of standardized addresses obliges drivers to rely on local landmarks, escalating first-attempt failure ratios. Limited 4G coverage curtails real-time tracking, eroding customer experience. These structural hurdles cap market penetration but grant incumbents with niche know-how a moat against new entrants[4]“Digital Economy,” Malaysian Investment Development Authority, mida.gov.my.
Segment Analysis
By End User Industry: Healthcare Takes the Lead
E-commerce orders made up 38.35% of 2024 parcel demand, but healthcare recorded the fastest 6.28% CAGR between 2025-2030 due to stricter cold-chain compliance and medical device proliferation. Temperature-controlled vans and GDP-certified warehouses lend premium margins.
Financial services, manufacturing, and wholesale trade sustain predictable B2B lanes that smooth seasonal e-commerce volatility. For carriers, diversified vertical exposure insulates revenue and reinforces service breadth in the Malaysia courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Momentum Gains Traction
International consignments are climbing at a 6.20% CAGR between 2025-2030, even though domestic traffic held 64.94% of the Malaysia courier, express, and parcel market share in 2024. Cross-border e-commerce, ASEAN Express rail pilots, and the Digital Free Trade Zone elevate outbound SME parcels, sharpening demand for customs-compliant air connectivity. Domestic lanes capitalize on urban density in Klang Valley, where route density and near-zero failed-delivery rates secure stable cash flow.
The Malaysia courier, express, and parcel market size for cross-border flows is primed to widen as ePAM cuts clearance turnaround and the Pan-Asian Railway Network slashes transit to China to 9 days. Nonetheless, the RM500 air-only de-minimis cap restrains multimodal shift; road and sea consignments still wade through manual inspections, constricting end-to-end cost savings. Carriers with multimodal brokerage are best placed to arbitrage these gaps.
By Speed of Delivery: Express Acceleration
Express volumes are rising at a 6.88% CAGR between 2025-2030 versus the economy segment’s slower trajectory, though the latter keeps a commanding 75.60% slice of 2024 revenue. Consumer habits favor same-day or next-day promises, especially for fashion, electronics, and perishable grocery baskets.
Pos Malaysia’s electrified fleet and dark-store alliances now deliver within two hours inside Kuala Lumpur, setting new service benchmarks. Meanwhile, economy options attract SMEs shipping low-value or non-urgent inventory. The Malaysia courier, express, and parcel market size for express is thus expected to capture incremental share, but price sensitivity still directs bulk shipments into the non-express bucket.
By Shipment Weight: Light Parcels Dominate
Parcels under 5 kg represented 68.74% of 2024 traffic, mirroring e-retail’s preference for frequent, low-weight dispatches. Their high drop-density supports bike and van electrification, shrinking cost-per-stop. Heavyweight consignments, expanding at 4.62% CAGR between 2025-2030, entail palletization and lift-gate trucks, preserving higher yield per unit.
Medium-weight parcels benefit from customs facilitation for items under 30 kg, accelerating cross-border growth. Volume mix shifts gift couriers operating leverage, as light parcels require fewer touchpoints and yield faster line-haul speeds in the Malaysia courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Air Gains Altitude
Road still owns 51.64% modal share thanks to Malaysia’s excellent highway spine, but air consignments are moving at a 5.09% CAGR between 2025-2030 as cross-border e-commerce demands tight delivery windows. KLIA’s new automated hub processes 10,000 parcels per hour, pulling volume from regional airports.
SKDS 2.0 fuel relief helps blunt diesel shock for road carriers, yet rising urban congestion favors air-road hybrids. Investments in Penang and Kota Kinabalu airports will nurture secondary hubs, extending air-reach in the Malaysia courier, express, and parcel market size calculus.
By Business Model: B2C Outweighs But C2C Adds Flavor
B2C dominated 2024 with 54.07% share, buoyed by marketplaces and direct-to-consumer brands that outsourced fulfillment to third-party couriers. Stable contract flows shield operators from peak price swings, making B2C a cornerstone of revenue planning.
Conversely, C2C parcels expanding at 4.33% CAGR between 2025-2030—introduce stochastic volumes and variable packaging, uplifting handling cost. Yet they improve network fill during off-peak hours. B2B flows remain a smaller but stickier revenue stream. Operators aiming for margin resiliency diversify across all three, balancing yield and utilization in the Malaysia courier, express, and parcel market.
Geography Analysis
Peninsular Malaysia accounts for most parcel throughput, anchored by Klang Valley’s urban sprawl, KLIA’s air-freight dominance, and Port Klang’s feeder-ship network. Diesel subsidy removal lifted pump prices to MYR 3.35 (USD 0.72) per liter, pressuring line-haul costs, yet delivery density keeps margins positive. Infrastructure upgrades such as ECRL and MRT3 promise faster depot-to-customer feeds, while the Johor-Singapore RTS should unlock cross-border last-mile synergies.
East Malaysia’s Sabah and Sarawak contribute smaller volumes but yield higher unit economics where subsidies cap diesel at MYR 2.15 (USD 0.46) per liter. MASwings’ rural air service to 11 STOLports enables reach into otherwise inaccessible settlements, though lack of formal addresses inflates delivery retries. Logistics players leveraging local partnerships mitigate these inefficiencies through community pick-up points.
Inter-ASEAN corridors with Thailand and Singapore are set to accelerate once the Pan-Asian Railway Network matures, compressing freight timelines into single-digit days. The Digital Free Trade Zone’s multi-airport rollout balances geographic concentration and widens air-freight options for SMEs, keeping the Malaysia courier, express, and parcel market regionally integrated despite infrastructural asymmetries.
Competitive Landscape
The Malaysia courier, express, and parcel market hosts a moderately consolidated roster where the top five players control a significant share of revenue. DHL’s EUR 60 million (USD 66.21 million) KLIA hub exemplifies capex-heavy automation that deepens competitive moats. FedEx’s predictive ETA engine pushes on-time performance higher, sharpening its premium positioning across APAC.
Pos Malaysia’s pledge to run a fully electric fleet by 2030, with 1,300 e-bikes already deployed, demonstrates a bid for cost and environmental leadership. SF Express’ merger with Kerry Logistics widens China-Malaysia door-to-door capacity, while UPS leverages a Ninja Van alliance to fortify intra-ASEAN lanes.
Niche players target healthcare cold-chain and high-value electronics to sidestep general-parcel price wars. Market consolidation is likely as sub-scale operators struggle with diesel spikes and technology outlays. Strategic thrust now centers on omnichannel fulfillment, predictive routing, and green logistics to safeguard both margin and market share in the Malaysia courier, express, and parcel market.
Malaysia Courier, Express, And Parcel (CEP) Industry Leaders
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J&T Express
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Ninja Van
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POS Malaysia Bhd
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City-Link Express
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GDEX Group
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- February 2025: FedEx completed its first electric-vehicle Malaysia–Singapore cross-border trial, cutting 100 kg of CO₂ per delivery.
- January 2025: SF Express deepened Malaysian operations after integrating Kerry Logistics, boosting warehouse automation and cross-border tracking.
- October 2024: DHL inaugurated a EUR 60 million (USD 66.21 million) automated 13,000 m² hub at KLIA, integrating solar panels and AI parcel routing.
- March 2024: Pos Malaysia expanded its electrified fleet to 1,300 e-bikes and 500 e-vans toward a 2030 zero-tailpipe target.
Malaysia Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Destination
| Domestic |
| International |
Speed of Delivery
| Express |
| Non-Express |
Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Mode of Transport
| Air |
| Road |
| Others |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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