Netherlands 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 9.55 Billion |
| Market Size (2030) | USD 12.12 Billion |
| Growth Rate (2025 - 2030) | 4.88% 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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Netherlands Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Netherlands courier, express, and parcel (CEP) market size is valued at USD 9.55 billion in 2025 and is projected to reach USD 12.12 billion by 2030, reflecting a 4.88% CAGR between 2025-2030. Robust digital commerce adoption, world-class logistics infrastructure, and gateway access through Rotterdam and Schiphol keep volume growth firmly on track. International e-commerce inflows, rapid parcel-locker expansion, and zero-emission delivery mandates are reshaping service portfolios and cost structures. Carriers are accelerating electric-vehicle roll-outs to comply with city-zone rules while pursuing automation to offset wage inflation. Moderate market concentration means pricing power remains limited, so technology investments are the primary lever for defending margins in the Netherlands courier, express, and parcel (CEP) market.
Key Report Takeaways
- By destination, domestic shipments held 66.84% of the Netherlands courier, express, and parcel (CEP) market share in 2024; international parcels are advancing at a 5.07% CAGR between 2025-2030.
- By speed of delivery, non-express services accounted for 76.47% of the Netherlands courier, express, and parcel (CEP) market size in 2024, while express deliveries are projected to expand at a 5.65% CAGR between 2025-2030.
- By model, the business-to-consumer (B2C) segment led with 53.59% revenue share in 2024; consumer-to-consumer (C2C) values record the highest expected CAGR at 3.78% between 2025-2030.
- By shipment weight, lightweight parcels represented 52.75% of the revenue share in 2024, whereas heavy parcels are growing fastest at 4.41% CAGR between 2025-2030.
- By mode of transport, road captured 46.88% of the revenue share in 2024; air transport is forecast to post a 4.15% CAGR between 2025-2030.
- By end user industry, manufacturing contributed 32.86% of the revenue share in 2024, while the e-commerce segment is set to accelerate at a 5.32% CAGR between 2025-2030.
Netherlands Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce penetration sustaining high B2C parcel volumes | +1.2% | National, with concentration in Randstad urban areas | Medium term (2-4 years) |
| Automated parcel-locker and PUDO roll-outs boosting out-of-home delivery share | +0.8% | National, with urban density advantages | Short term (≤ 2 years) |
| Cross-border e-commerce inflows from Asia and EU marketplaces | +0.9% | National, with Schiphol and Rotterdam gateway effects | Medium term (2-4 years) |
| Digital/API integration easing SME shipper onboarding | +0.6% | National, with SME cluster benefits | Long term (≥ 4 years) |
| Zero-emission city-zone policies accelerating electric last-mile fleet demand | +0.7% | Urban municipalities, expanding to 30-40 cities | Short term (≤ 2 years) |
| CSRD sustainability reporting pushing retailers toward data-rich CEP partners | +0.5% | National, with enterprise customer focus | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Explosive E-Commerce Penetration Sustaining High B2C Parcel Volumes
More than 13.9 million Dutch shoppers spent USD 36 billion online in 2024, locking in a baseline of high parcel density that underpins network utilization[1]Statistics Netherlands, “Online Purchases from Abroad Continue to Rise,” cbs.nl. Over 60% of consumers now purchase from foreign sites, so carriers with customs proficiency and integrated tracking capabilities capture loyalty. Omnichannel retailers rely on carriers for distributed inventory, reverse logistics, and flexible delivery windows. Investment in application-programming-interface (API) visibility tools is vital because real-time status updates and rescheduling options have shifted from nice-to-have to table stakes. These factors collectively strengthen the Netherlands courier, express, and parcel (CEP) market as a resilient, B2C-centric ecosystem.
Automated Parcel-Locker and PUDO Roll-Outs Boosting Out-of-Home Delivery Share
DHL intends to deploy 1,250 additional lockers by end-2025, lifting its nationwide out-of-home footprint and trimming failed delivery expenses. MyPup’s B-Corp-certified pick-up network signals how sustainability accreditation influences consumer collection choices[2]MyPup B.V., “Sustainable PUDO Network Solutions,” mypup.nl. Out-of-home models improve drop density, cut driver mileage, and mitigate labor scarcity. Consumer surveys show acceptance of locker use has reached critical mass, so operators are escalating capital deployment. Combined, these shifts enhance last-mile productivity across the Netherlands courier, express, and parcel (CEP) market.
Cross-Border E-Commerce Inflows from Asia and EU Marketplaces
PostNL’s collaboration with AliExpress channels is rising volumes of small, low-value items into its customs-optimized gateways[3]PostNL N.V., “Annual Report 2024,” postnl.nl. The EU’s Import Control System 2 raises data-quality thresholds, favoring carriers with advanced digital compliance. Asian platforms concentrate demand, enabling tailored service bundles that blend duty management with doorstep visibility. As cross-border flows surge, customs-ready transit hubs at Rotterdam and Schiphol secure the Netherlands courier, express, and parcel (CEP) market’s role as a European entry point.
Digital/API Integration Easing SME Shipper Onboarding
Government-backed programs are helping small firms plug straight into carrier systems via standardized APIs[4]Government of the Netherlands, “SME Policy and Digital Infrastructure,” government.nl. Digital onboarding removes paperwork friction, allowing SMEs to access enterprise-grade services without hefty contracts. Carriers gain predictable volume streams at lower acquisition cost, while automated billing shrinks overhead. Over time, API-first strategies expand addressable demand and reinforce the Netherlands courier, express, and parcel (CEP) industry’s competitiveness.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Severe labour scarcity inflating delivery-unit costs | -0.9% | National, with urban concentration challenges | Short term (≤ 2 years) |
| Margin-eroding price wars among major carriers | -0.7% | National, with competitive intensity in Randstad | Medium term (2-4 years) |
| Postal letter-volume decline dragging network cost base | -0.4% | National, affecting universal service providers | Long term (≥ 4 years) |
| Municipal bans on dark stores curbing ultra-fast delivery coverage | -0.3% | Urban municipalities, concentrated in major cities | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Severe Labor Scarcity Inflating Delivery-Unit Costs
Transport-sector wages climbed 4.7% in 2024, yet vacancies remain stubbornly high. Driver shortages limit peak-season fleet capacity and compel overtime premium payments. Smaller operators, lacking automation scale, face disproportionate cost burdens. Consequently, carriers are fast-tracking electric carts, micro-hubs, and parcel lockers to reduce driver touchpoints across the Netherlands courier, express, and parcel (CEP) market.
Margin-Eroding Price Wars Among Major Carriers
PostNL’s universal-service obligations constrain its pricing flexibility, prompting rivals to match low base rates in a volume grab. Aggressive discounting in the crowded B2C segment narrows margins just as fleet electrification and wage bills rise. Mid-tier players must develop value-added services—returns management, data analytics, or carbon reporting—to escape commoditization traps in the Netherlands courier, express, and parcel (CEP) market.
Segment Analysis
By End User Industry: Manufacturing Provides the Base, E-Commerce Fuels Upside
Manufacturing shipments with a share of 32.86% in 2024, supply steady weekday volumes, stabilizing capacity planning, and underpinning asset utilization. E-commerce, outpacing all other sectors at a 5.32% CAGR between 2025-2030, adds volatile peaks that test network agility. Healthcare and BFSI customers demand secure, time-definite delivery, creating premium niches with above-average yields. Meanwhile, wholesale and primary industries require bulkier consignments, supporting the heavy-parcel outperformance noted earlier.
Blending these verticals lets carriers balance predictability with growth. Investments in sector-specific handling—temperature monitoring for pharma, bonded storage for high-value electronics—further elevate the Netherlands courier, express, and parcel (CEP) industry’s service maturity.
Note: Segment shares of all individual segments available upon report purchase
By Destination: Cross-Border Parcels Outpace Domestic Volume
International shipments advanced at a 5.07% CAGR from 2025 to 2030, faster than domestic growth yet still representing only one-third of overall volume. Lightweight items from Asian marketplaces dominate cross-border demand, aided by specialized handling corridors through Schiphol. Carriers invest in customs automation to navigate Import Control System 2 requirements, reinforcing the Netherlands courier, express, and parcel (CEP) market share advantage in gateway logistics. Domestic parcels, however, retain scale benefits and dense stop density, underpinning margins despite slower expansion.
Domestic volume leverages the nation’s compact geography to support same-day services with a 66.84% revenue share in 2024, while international flows bring diversification and higher unit revenue. Operators able to harmonize both networks—using domestic capacity to feed export lanes and vice-versa—enjoy utilization synergies. Consequently, multi-network flexibility is becoming a strategic differentiator across the Netherlands courier, express, and parcel (CEP) market.
By Speed of Delivery: Express Services Gain Momentum
Express parcels, though a minority today, are growing at a 5.65% CAGR between 2025-2030 as urban consumers prioritize speed and certainty. Same-day propositions thrive in the Randstad, where dense population lowers per-drop costs. Non-express traffic remains price-led but faces rising service expectations with 76.47% share in 2024, pushing providers to enhance tracking even for economy tiers. The Netherlands courier, express, and parcel (CEP) market size for express services is projected to grow by 2030, underscoring the revenue impact of premium segments.
Zero-emission rules could narrow express economics if battery range limits multi-trip routes, yet locker density and micro-hubs offset this by reducing mileage. Carriers with diversified fleets—electric vans for urban express, conventional vehicles for regional non-express—can balance cost and sustainability mandates.
By Shipment Weight: Heavy Parcels Pick Up Pace
Lightweight items still account for 52.75% of traffic in 2024 due to fashion and consumer electronics dominance. Heavy parcels, however, are the fastest climber with a projected CAGR of 4.41% between 2025-2030, mirroring advanced manufacturing and cross-dock consolidation growth. Automated sorters capable of moving mixed weights without reconfiguration grant efficiency to multi-category hubs. The Netherlands courier, express, and parcel (CEP) market size for heavy items is projected to expand by 2030, unlocking new pallet-compatible revenue pools.
Dynamic route planning that pairs heavy first-mile pick-ups with lightweight last-mile deliveries maximizes vehicle fill rates. Carriers capable of flexible load planning will capture economies unavailable to single-weight specialists.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Air Freight Accelerates
Road held 46.88% modal share in 2024 thanks to the country’s dense highway grid. Yet air transport is rising at a 4.15% CAGR between 2025-2030, propelled by cross-border e-commerce and medical shipments needing rapid transit. Schiphol’s cargo slots and nighttime curfew exemptions give carriers scheduling agility, while bonded warehouse clusters streamline clearance. Multimodal orchestration—road feeder service combined with scheduled freighter departures—strengthens the Netherlands courier, express, and parcel (CEP) market’s pan-European connectivity.
Electric trucks will assume a larger share of urban road legs as charging infrastructure matures, improving cost parity with diesel. This transition supports national climate policy without sacrificing service levels.
By Model: B2C Dominance, C2C Upswing
B2C commanded 53.59% of revenue in 2024, anchored by e-commerce giants and omni-channel retailers. High return rates, promotional peaks, and fine-grained delivery windows necessitate robust IT integration, which top carriers provide. C2C parcels, meanwhile, are climbing at 3.78% CAGR between 2025-2030 as resale apps normalize peer-to-peer trade. Volume spikes around seasonal closet clear-outs present planning challenges but also yield incremental margins. B2B shipments remain stable, serving manufacturing supply chains and wholesale distribution that value reliability over speed.
Platform APIs now embed shipping labels directly into resale portals, simplifying consumer access to professional networks and nurturing C2C scale. This convergence strengthens the Netherlands courier, express, and parcel (CEP) market’s resilience by diversifying customer archetypes.
Geography Analysis
The Randstad megalopolis concentrates over 40% of the population within a 60-kilometer radius, making it the epicenter of B2C express demand and locker deployments. Same-day coverage here reaches 90% of addresses, a feat that relies on micro-depots and bicycle couriers integrated into electric-van trunks for zone hops. Amsterdam’s municipal zero-emission mandate, beginning in 2025, compels carriers to replace diesel fleets but also grants access privileges that speed deliveries.
Rotterdam Port and Schiphol Airport anchor international throughput, collectively processing more than two-thirds of cross-border parcels entering the Netherlands courier, express, and parcel (CEP) market. Their co-location with rail and barge connections supports modal switching, compressing end-to-end lead times into continental Europe. Customs digitalization at these hubs under the EU’s Import Control System 2 provides a competitive advantage for data-savvy operators.
Outside the Randstad, provinces such as Noord-Brabant and Gelderland host manufacturing clusters that feed steady B2B lane volumes. Rural areas present density challenges, so carriers deploy parcel lockers in village supermarkets to maintain service levels at a sustainable cost. Regional governments also back electric-van charging corridors, aligning with national decarbonization goals. Overall, geography continues to serve as a structural tailwind for the Netherlands courier, express, and parcel (CEP) market.
Competitive Landscape
PostNL, DHL Group, UPS, and FedEx form the core of a moderately consolidated field, collectively controlling a significant share of parcel revenue. Scale allows these leaders to amortize investments in automation, electric fleets, and locker networks, but has not prevented margin compression. Mid-tier players such as Bpost Group and GEODIS carve niches via cross-border specialization and contract-logistics integration.
Sustainability now ranks alongside price and speed as a bidding criterion. DHL’s plan to install 1,250 lockers by 2025 supports carbon reduction and contactless convenience, while UPS’s deployment of 160 electric vans in 2025 affirms a fleet refresh trajectory. FedEx’s new Vianen hub, capable of 3,600 parcels per hour, exemplifies capacity upgrades aimed at peak-season resilience. Competitive focus is shifting toward data-rich offerings—carbon dashboards, real-time alerts, and predictive ETAs—that reinforce customer stickiness within the Netherlands courier, express, and parcel (CEP) market.
Private-equity interest in last-mile tech startups suggests future consolidation, particularly for specialized locker operators and route-optimization software vendors. Carriers able to integrate these assets quickly will secure lasting cost and service advantages.
Netherlands Courier, Express, And Parcel (CEP) Industry Leaders
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Post NL
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DHL Group
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La Poste Group
-
United Parcel Service (UPS)
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FedEx
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: FedEx opened a 5,865 m² logistics facility in Vianen with capacity for 3,600 parcels per hour.
- June 2025: Bpost Group launched #Reshape2029, repositioning toward parcel-centric logistics with digital enhancements.
- February 2025: UPS deployed 160 new electric vehicles across Belgium and the Netherlands as part of its European fleet electrification.
- December 2024: Logista acquired the remaining 30% stake in Speedlink Worldwide Express to expand Nacex express services in the Netherlands.
Netherlands 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
