Mexico Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.77 Billion |
| Market Size (2030) | USD 3.75 Billion |
| Growth Rate (2025 - 2030) | 6.27% 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. |
|
Mexico Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Mexico courier, express, and parcel (CEP) market size is valued at USD 2.77 billion in 2025 and is forecast to reach USD 3.75 billion by 2030, advancing at a 6.27% CAGR (2025-2030). Nearshoring-led manufacturing inflows, fast-rising digital retail adoption, and mandatory logistics digitization rules are the principal growth engines. Express operators benefit from cross-border component flows that demand guaranteed delivery windows, while non-express carriers ride expanding intra-regional trade and price-sensitive household demand. Security investments, technology upgrades, and network realignments around Felipe Ángeles International Airport characterize current competitive strategies. Opportunities lie in temperature-controlled healthcare logistics, integrated multi-courier APIs that unlock SME shipping, and regional pockets opened by federal infrastructure spending.
Key Report Takeaways
- By destination, domestic parcels commanded 62.54% of the Mexico courier, express, and parcel (CEP) market share in 2024; international shipments are forecast to expand at a 6.48% CAGR between 2025-2030.
- By speed of delivery, non-express services held 73.48% of 2024 revenue; express services are projected to grow at a 7.11% CAGR between 2025-2030.
- By business model, business-to-consumer (B2C) accounted for 55.58% of the 2024 value, while consumer-to-consumer (C2C) is projected to advance at a 4.13% CAGR between 2025-2030.
- By shipment weight, light weight parcels represented 58.59% of 2024 values; heavy weight parcels lead growth with a 5.46% CAGR between 2025-2030.
- By transport mode, road maintained 48.51% share in 2024, and air is forecast to post the fastest 5.33% CAGR between 2025-2030.
- By end user industry, e-commerce generated 36.44% of 2024 demand, whereas healthcare logistics is on track for a 6.58% CAGR between 2025-2030.
Mexico Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive B2C e-commerce penetration post-pandemic | +1.8% | National, concentrated in Mexico City, Guadalajara, Monterrey | Short term (≤ 2 years) |
| Nearshoring manufacturing flows boosting cross-border parcels | +1.5% | Northern border states, Bajío region | Medium term (2-4 years) |
| Digital SAT “Carta Porte” compliance accelerating tech upgrades | +0.9% | National | Short term (≤ 2 years) |
| Airport cargo relocation to AIFA opening capacity | +0.7% | Central Mexico | Medium term (2-4 years) |
| Same-day delivery race led by on-demand platforms | +0.6% | Major urban centers | Short term (≤ 2 years) |
| Multi-courier API platforms democratizing SME shipping | +0.5% | National | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Explosive B2C E-Commerce Penetration Post-pandemic
Mobile-first retail adoption vaulted Mexico’s online shopping share of total retail to double-digit territory in 2024, triggering structural preference for tracked door-to-door delivery. Urban centers post penetration levels surpassing 15%, a rate that compresses acceptable delivery windows to 24 hours or less. Rising return ratios in fashion and consumer electronics add reverse-logistics complexity, encouraging investment in micro-fulfillment and drop-off lockers. Informal sellers migrate to professional courier networks through social commerce channels, broadening the volume base. Compliance burdens under new Foreign Trade General Rules raise barriers for unregistered operators, tilting demand toward formal CEP players equipped with digital inventory interfaces[1]“Reglas Generales de Comercio Exterior 2024,” Secretaría de Hacienda y Crédito Público, gob.mx .
Nearshoring Manufacturing Flows Boosting Cross-Border Parcel Volumes
Relocation of electronics, automotive, and aerospace production from Asia to northern and Bajío corridors injects high-value, time-sensitive components into parcel networks. USMCA duty incentives and stringent just-in-time schedules elevate express premiums and favor carriers offering temperature-controlled cabins and in-transit visibility. Bilateral trade leadership with the United States cements lane density, while government-backed interoceanic rail projects promise additional east-west corridors that bypass Mexico City congestion. Component suppliers increasingly demand bidirectional parcel flow, creating predictable back-haul volumes that raise network utilization rates[2]"Leveraging Reverse Logistics in E-Commerce for Sustainable Growth." Mexico Business, mexicobusiness.news/ecommerce.
Digital SAT “Carta Porte” Compliance Accelerating Tech Adoption by Couriers
Mandatory e-invoicing and granular cargo descriptions effective January 2025 require real-time data interfaces between courier, customer, and tax authority. Operators unable to validate consignee tax IDs or issue compliant digital manifests risk service suspension. The regulation accelerates onboarding of warehouse-management systems, barcode scanning, and API connectivity, rewarding carriers with scalable IT stacks. Multi-carrier platforms integrate compliance modules as value-added services, attracting SMEs previously daunted by documentation complexity. Early adopters gain margin headroom by automating audit trails and reducing manual processing errors.
Same-Day Delivery Race Led by On-Demand Platforms
Crowdsourced courier apps concentrate in high-density metros, leveraging gig fleets and algorithmic routing to achieve sub-two-hour delivery promises. Retailers partner to retain checkout conversion, while pharmacies rely on the model for temperature-sensitive last-mile drops. Venture-funded subsidies compress delivery tariffs, pressuring legacy CEP pricing. Established integrators counter with evening and weekend slots, locker pickup, and advanced ETA alerts to retain relevance. Scalability hurdles emerge outside top cities where order frequency cannot sustain driver utilization, creating coexistence of rapid urban delivery and standard services elsewhere.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cargo-theft hotspots elevating insurance and security costs | -0.8% | State of Mexico, Puebla, San Luis Potosí | Long term (≥ 4 years) |
| Persistent road-infrastructure gaps in southern states | -0.6% | Chiapas, Oaxaca, Guerrero | Long term (≥ 4 years) |
| Margin squeeze from fuel-surcharge volatility and minimum-wage hikes | -0.5% | National | Short term (≤ 2 years) |
| Customs bottlenecks for low-value cross-border e-packages (< USD 50) | -0.4% | Border crossings, international gateways | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Cargo-Theft Hotspots Elevating Insurance and Security Costs
Well-organized theft rings target high-value and easily resold cargo, forcing route deviations and convoy protocols that lift unit costs. Violent incidents drive underwriters to increase deductibles or exclude highways deemed red zones, translating into premium surcharges passed to shippers. Real-time GPS monitoring, geofencing, and armed escorts become standard on vulnerable lanes, eroding small-carrier competitiveness. Service availability narrows in night hours, elongating delivery lead times. Secure-facility handoffs and in-transit sensor data create new ancillary revenue streams for technology-enabled providers[3]“Programa Nacional de Infraestructura 2025,” Secretaría de Infraestructura, Comunicaciones y Transportes, gob.mx .
Persistent Road-Infrastructure Gaps in Southern States
Limited highway connectivity and frequent weather-related disruptions lengthen delivery cycles and inflate fuel consumption. Carriers downsize vehicle types to navigate narrow rural roads, reducing load factors and raising per-parcel economics. Lower purchasing power curbs shipment density, undermining investment rationales for automated hubs. Government capital allocations will not materially affect lane conditions until late decade, so operators craft hybrid models that hand off to local micro-distributors. Infrastructure disparity sustains a dual-speed market where premium CEP services cluster around central and northern industrial zones[4]"Mexican Government Releases 'Plan México.'" Jones Day, jonesday.com/en/insights.
Segment Analysis
By End User Industry: E-Commerce Reigns as Healthcare Emerges
E-Commerce constituted 36.44% of 2024 demand, spawning peak season surges that stretch from November shopping festivals through January returns. Fashion and gadgets drive frequency, while grocery delivery spikes midday.
Healthcare shipments, forecast to rise at a 6.58% CAGR (2025-2030), gain from pharmaceutical distribution upgrades and medical-device import growth. DHL earmarked EUR 2 billion (USD 2.20 billion) for global health logistics through 2030, half destined for the Americas, guaranteeing GDP-certified storage and temperature-controlled vehicles that directly bolster the Mexico courier, express, and parcel (CEP) market. Manufacturing, financial documents, and primary industries add diversification, each requiring tailored security or compliance layers.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Growth Outpaces a Large Domestic Base
The domestic segment commanded 62.54% of 2024 revenues within the Mexico courier, express, and parcel (CEP) market, buoyed by metropolitan consumption and inter-state manufacturing replenishment. Retailers anchor stock in Mexico City fulfillment centers to reach 55 million consumers within overnight range, sustaining dense van routes that optimize stop counts. Provincial hubs such as Guadalajara and Monterrey mature into secondary sort centers, spreading load away from the capital. Parallel to domestic strength, cross-border parcels ride the wave of automotive and electronics supply-chain integration.
The Mexico courier, express, and parcel (CEP) market size attached to international flows is projected to compound at a 6.48% CAGR (2025-2030), enabled by streamlined USMCA paperwork and bonded lane pilots at key bridges. Airfreight envelopes time-critical prototypes, and ground express lines target USD 50–800 tariff-free thresholds, balancing speed with cost. Courier networks invest in dual-customs clearance zones that cut handoff times, positioning them for rising same-day border hops promised by nearshoring OEMs.
By Speed of Delivery: Express Services Capture Margin, Non-Express Retains Volume
Non-express offerings held 73.48% of 2024 turnover, reflecting household sensitivity to freight charges and acceptable three-day delivery in tier-two cities. Large-format e-tailers negotiate bulk rates that keep economy service relevant, especially in price-led product categories. Nonetheless, urban lifestyle shifts and instant need purchases fuel express values that are forecast to grow at a 7.11% CAGR (2025-2030).
The Mexico courier, express, and parcel (CEP) market share attached to express lanes will widen as manufacturers demand sub-24-hour restocking for just-in-sequence lines. Courier majors add cross-dock pods within 10 kilometers of factory clusters, shaving line-haul kilometers and embedding RFID visibility. Gig driver networks augment daytime failed delivery attempts, ensuring parcel completion before penalty windows. Sustainability agendas push hybrid-electric vans for central business districts, merging speed gains with emission targets.
By Shipment Weight: Light Parcels Prevail While Heavy Categories Accelerate
Light consignments up to 2 kilograms held 58.59% of 2024 traffic, powered by apparel, beauty, and small electronics. Micro-fulfillment nodes adopt conveyor-belt sorters tuned for polybag throughput, elevating picks per hour. Heavy shipments, despite lower incidence, will expand at a 5.46% CAGR (2025-2030) as machinery spares and industrial kits flow from maquiladora clusters to U.S. assembly plants.
The Mexico courier, express, and parcel (CEP) market size servicing heavy parcels benefits from nearshoring, as OEMs switch from ocean freight to expedited ground or air to hedge inventory risk. Couriers deploy tail-lift vans and pallet-handling protocols, differentiating from general trucking by integrating scan-to-container lineage reporting. Medium weights form an adaptive buffer category, often repacked at transshipment centers to optimize dimensional pricing.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Road Dominates but Air Gains Altitude
Road corridors accounted for 48.51% of 2024 segment revenue, leveraging tolled highways that link factory belts to metropolitan consumption zones. Double-trailer configurations maximize cubic utilization, though rising tolls and driver wage floors squeeze margins. Airfreight, set to post a 5.33% CAGR (2025-2030), hinges on express input shipments for electronics and fast-fashion drops.
Felipe Angeles International Airport’s cargo campus attracted Swissport ground-handling services in 2024, creating incremental sort capacity and alleviating legacy hub saturation. Integrators institute late cut-off times exploiting airport curfews lifted at the new site, enabling midnight departures and dawn arrivals. Rail and maritime modes cater to oversized or hazardous consignments but remain peripheral to parcelized flows.
By Model: B2C Dominance with Emerging C2C Digitization
Business-to-Consumer (B2C) movements represented 55.58% of 2024 parcel pieces, a testament to digital storefront proliferation among brick-and-mortar chains. Retail brands integrate checkout APIs that auto-populate tracking links, making courier selection an integral marketing lever. Free-shipping thresholds incentivize basket aggregation, stabilizing average parcel weight at the light tier. Consumer-to-Consumer (C2C) exchanges, historically handled informally, transition onto platform-enabled shipping labels that pre-pay duties and generate QR codes, growing at a 4.13% CAGR (2025-2030).
The Mexico courier, express, and parcel (CEP) industry sees peer-to-peer resale stimulate weekend pickup spikes as consumers schedule drivers via mobile apps. B2B, though smaller in count, delivers higher revenue per consignment and leverages secure chain-of-custody audits demanded by electronics and aerospace clients. Couriers bundle document management for certificates of origin, locking in enterprise accounts through compliance value rather than price.
Geography Analysis
Central Mexico anchors parcel density, with greater Mexico City generating the lion’s share thanks to 22 million residents, elevated purchasing power, and urban e-commerce penetration exceeding national averages. Same-day networks radiate outward in concentric rings, supported by cross-dock mini-hubs in Toluca and Cuautitlán. Northern border states form the second pillar, where maquiladora ecosystems in Tijuana, Ciudad Juárez, and Reynosa channel outbound components to U.S. assembly plants; dedicated customs pre-clearance fast-tracks shipments, reducing idle dwell. The Bajío industrial triangle Queretaro, Guanajuato, and Aguascalientes gains prominence as aerospace and automotive OEMs deepen vendor localization, prompting integrators to open regional gateways that de-risk dependence on Mexico City airspace.
Southern territories of Chiapas, Oaxaca, and Guerrero remain underserved due to infrastructure gaps and lower discretionary income. Courier coverage focuses on state capitals, leaving rural zones to postal alternatives. Federal road investment pledged through 2030 provides long-term upside but limited short-run relief. Coastal tourism hotspots such as Cancún and Puerto Vallarta exhibit seasonality, with shipment peaks aligned to holiday occupancy rates.
The emerging Interoceanic Corridor promises east-west links that could reposition Minatitlán and Salina Cruz as intermodal nodes, potentially redistributing parcel sort volumes. Cargo-theft prominence in central-eastern corridors forces carriers to adopt high-security operating windows and variable risk surcharges, influencing shipper routing decisions.
Competitive Landscape
The Mexico courier, express, and parcel (CEP) market is moderately consolidated, with international integrators, national incumbents, regional specialists, and technology platforms coexisting. Failed mega-deals, including an attempted 2024 acquisition of a leading domestic operator by a global integrator, underscore regulatory scrutiny and national interest sensitivities. Multi-courier API providers aggregate more than 100 carriers, wielding pricing transparency that compresses margins for commoditized lanes. Digital “Carta Porte” mandates raise compliance thresholds, nudging sub-scale fleets toward alliances or exit, a dynamic likely to trigger selective consolidation through 2028.
Strategic moves center on network densification and sector specialization. A European-based logistics giant allocated EUR 2 billion (USD 2.20 billion) to life-science logistics, earmarking cold-chain hubs in Mexico that will expand temperature-controlled van fleets and attract pharma clients. Ground operators install smart lockers at convenience stores to lower failed-delivery costs and drive consumer self-collection. Cargo-security investments, including AI-based route optimization and telematics, differentiate premium service tiers in theft-prone regions. Investment funds target last-mile startups with adaptable gig fleets, though sustainability of subsidized pricing remains uncertain.
Margin resilience depends on technology integration. Carriers offering API-first booking, real-time tracking, and automated tax compliance gain stickiness with SMEs scaling cross-border e-commerce. Healthcare and aerospace verticals reward operators with specialized certifications such as GDP and TAPA, creating defensible niches against generalist competitors. Fragmentation persists, yet rising capital requirements for security and digitization are expected to tilt share toward operators with strong balance sheets and multinational partnerships.
Mexico Courier, Express, And Parcel (CEP) Industry Leaders
-
DHL Group
-
Estafeta
-
FedEx
-
Traxion (including Redpack)
-
United Parcel Service of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- September 2025: DSV completed its acquisition of DB Schenker, creating a combined global logistics leader with 160,000 employees and expanded cross-border capabilities that are expected to influence Mexico-bound parcel flows.
- April 2025: DHL Group announced a EUR 2 billion (USD 2.20 billion) investment (2025-2030) in DHL Health Logistics, with 50% of the funding allocated to the Americas, including Mexico, to expand GDP-certified pharma hubs and temperature-controlled fleets.
- September 2024: DC Logistics, backed by a Monterrey family office, acquired the Mountain Valley Transport LTL division from GLS US, strengthening Mexico-U.S. cross-border freight capacity.
- April 2024: XPO Logistics opened three new service centers, one in Nogales, Arizona to enhance cross-border freight flows between the United States and Mexico.
Mexico 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.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| 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 |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
