Nordics Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 8.54 Billion |
| Market Size (2026) | USD 8.93 Billion |
| Market Size (2031) | USD 10.97 Billion |
| Growth Rate (2026 - 2031) | 4.19% CAGR |
| Market Concentration | High |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
Nordics Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Nordics courier express parcel (CEP) market size is projected to grow from USD 8.54 billion in 2025 to USD 8.93 billion in 2026, and to reach USD 10.97 billion by 2031, growing at a 4.19% CAGR from 2026 to 2031. Robust digital adoption, free-returns policies, and rising industrial spare-parts urgency are reshaping parcel flows even as macro-level growth appears steady. Reverse logistics now absorbs up to 40% of peak-season volumes in apparel, compelling operators to build bidirectional networks that traditional letter-post infrastructure cannot match. Omnichannel retail pushes frequent store-replenishment runs, while just-in-time manufacturing lifts premium express demand. At the same time, congestion at gateway hubs and inflation-linked surcharges squeeze margins, prompting carriers to invest in AI routing, electric vehicles, and cybersecurity upgrades that blunt cost inflation through efficiency.
Key Report Takeaways
- By end user, e-commerce captured 42.53% of the Nordics courier express parcel market share in 2025 and is forecast to expand at a 4.58% CAGR through 2031.
- By model, B2C held 54.28% share of the Nordics courier express parcel market size in 2025 and records the fastest growth at 5.47% CAGR over 2026-2031.
- By shipment weight, light parcels accounted for 64.03% share of the Nordics courier express parcel market size in 2025 and are projected to rise at a 4.64% CAGR to 2031.
- By speed, Non-express accounted for 75.69% share of the Nordics courier express parcel market size in 2025, while the express segment advances at 4.85% CAGR.
- By destination, domestic accounted for 64.67% of share of the Nordics courier express parcel market share in 2025, while international is expanding at a CAGR of 4.35% through 2031.
- By mode of transport, road accounted for 51.37% of share of the Nordics courier express parcel market share in 2025, while air is expanding at a CAGR of 5.18% through 2031.
- By country, Sweden led with 35.51% share in 2025, while Finland posts the highest projected CAGR at 4.29% through 2031.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.
Nordics Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosion in free-returns policies | +0.9% | Sweden, Denmark, Norway urban centers | Medium term (2-4 years) |
| Retailers’ push for omnichannel click-and-collect | +0.7% | Stockholm, Copenhagen, Oslo, Helsinki | Short term (≤ 2 years) |
| Industrial OEMs shifting to next-day CEP | +0.6% | Southern Sweden, Denmark manufacturing clusters | Medium term (2-4 years) |
| SME cross-border e-commerce with aggregators | +0.5% | Nordic-EU trade corridors | Long term (≥ 4 years) |
| Green shipping corridor funding | +0.4% | Oslo-Copenhagen, Stockholm-Helsinki maritime routes | Long term (≥ 4 years) |
| AI-driven dynamic routing engines | +0.3% | Stockholm, Copenhagen, and Oslo metros | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Explosion in Free-Returns Policies Accelerating Reverse Logistics Parcel Flows
Free-returns guarantees now drive reverse parcel volumes that equal 30-40% of outbound apparel shipments. Swedish return rates near 50% during promotions, forcing carriers to install consolidation hubs, automated sorters, and inventory-visibility tools. Business-to-consumer traffic, already rising at 5.47% CAGR, bears most of the reverse-logistics complexity. PostNord’s 6,000-locker network trims last-mile costs while protecting shopper convenience. Beyond transport, carriers must inspect, repackage, and triage returned items, creating margin-sensitive processing workloads.
Retailers’ Push for Omnichannel Click-and-Collect Boosting Intra-Nordic Store Replenishment
Click-and-collect adoption has reached 65% among Nordic shoppers, spawning high-frequency, low-volume replenishment runs to hundreds of stores per day. H&M’s micro-fulfillment model exemplifies this shift, demanding same-day or next-day inventory top-ups to keep pickup promises intact. Carriers able to integrate with retail stock systems and deliver on time-definite slots gain defensible competitive edges, while late adopters struggle to match service breadth.
Industrial OEMs Shifting Critical Spare-Parts Supply to Next-Day CEP Solutions
Manufacturers in pulp, paper, mining, and renewables are abandoning buffer inventories for just-in-time spare-parts delivery. Lost-production penalties dwarf expedited freight costs, making premium express parcels economically sound. DHL’s EUR 2 billion (USD 2.31 billion) health-logistics program includes industrial spare-parts capabilities that target this high-margin vertical. Predictive-maintenance software further stabilizes demand, letting carriers pre-position stock at regional depots to guarantee next-day arrival[1]DHL Group, “DHL Group to Invest EUR 2 Billion by 2030 in DHL Health Logistics,” DHL.COM.
SME Cross-Border E-Commerce Platforms Partnering with CEP Aggregators
Thousands of Nordic SMEs now bundle orders through aggregator platforms that secure bulk rates and enable dynamic routing across multiple carriers. As a result, international parcel traffic continues to grow at a 4.35% CAGR, even though domestic shipments still dominate overall volumes. Aggregators’ API-driven transparency is reshaping the competitive landscape, putting pressure on legacy tariff structures while rewarding operators that offer real-time tracking and flexible capacity. This shift is also accelerating digital integration across the logistics ecosystem, pushing smaller carriers to modernize or risk disintermediation.
Restraints Impact Analysis*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Congestion at airports and seaports | -0.6% | Arlanda, Kastrup, Gardermoen; major Nordic ports | Short term (≤ 2 years) |
| Inflation-linked fuel-surcharge volatility | -0.5% | Region-wide | Medium term (2-4 years) |
| Scarcity of GDP-certified cold-chain last-mile carriers | -0.4% | Copenhagen, Stockholm, pharma hubs | Medium term (2-4 years) |
| EU NIS2 cybersecurity compliance costs | -0.3% | All Nordic-EU operations | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Persistent Congestion at Nordic Gateway Airports and Seaports Prolongs Transit Times
Slot scarcity at Arlanda, Kastrup, and Gardermoen forces rerouting or schedule compromises that add handling steps and delay express parcels. Maritime dwell times lengthen during holiday surges, advantaging carriers with preferential berths or ownership stakes. Rail Nordica’s EUR 1.5 billion (USD 1.73 billion) plan promises relief but remains in planning, so capacity tightness will persist into the medium term[2]Finnish Transport Infrastructure Agency, “Rail Baltica Project,” VAYLA.FI .
Inflation-Linked Fuel Surcharge Volatility Eroding Pricing Transparency
Monthly diesel index adjustments swing landed shipping costs by up to 15%. SMEs struggle to budget, pushing demand for all-in contracts or aggregator platforms that surface real-time net rates. Carriers resist absorbing price risk without higher base tariffs, leaving negotiations tense and margins unpredictable.
*Our updated forecasts treat driver/restraint impacts as directional, not additive. The revised impact forecasts reflect baseline growth, mix effects, and variable interactions.
Segment Analysis
By End User: E-Commerce Dominance Intensifies Across Growth and Share
E-commerce generated 42.53% of the Nordics courier express parcel market size in 2025, and its 4.58% CAGR keeps it in pole position through 2031. Free-returns rates nearing 50% on fashion orders swell reverse-logistics volumes and amplify overall counts. In parallel, omnichannel giants use stores as pickup points, increasing intra-city replenishment trips.
Manufacturing, BFSI, and healthcare together supply a resilient baseline. Just-in-time spare-parts dispatches now ride premium express lanes, while certified cold-chain shortages cap pharmaceutical parcel expansion. Wholesale and primary industries fluctuate with commodity cycles, yet still rely on predictable B2B drop-schedules that fill trunk routes efficiently.
Note: Segment shares of all individual segments available upon report purchase
By Destination Type: International Flows Accelerate Despite Domestic Scale
Domestic consignments retained 64.67% of the Nordics courier express parcel market share in 2025, benefiting from dense urban clusters that support multiple same-day delivery waves. Click-and-collect orders and parcel-locker pickups dominate these intra-city loops.
International parcels, however, outpace them at 4.35% CAGR. Aggregator platforms aggregate SME shipments, lowering rate barriers and triggering customs-savvy solutions. Persistent airport congestion and Brexit paperwork add friction, but harmonized EU rules still make cross-border EU lanes attractive.
By Model: B2C Supremacy Extends Across Share and Growth Metrics
B2C captured 54.28% of the Nordics courier express parcel market share in 2025, rising at 5.47% CAGR. Shopper expectations for evening windows, real-time tracking, and effortless returns reshape last-mile design and technology budgets.
B2B remains margin-steady thanks to predictable receiving hours and consolidated drop volumes. Consumer-to-consumer exchanges inch upward as recommerce platforms grow, but price sensitivity limits revenue per parcel relative to commercial flows.
By Shipment Weight: Light Parcels Dominate Volume and Growth Trajectories
Light parcels, aided by electronics and fashion, held a 64.03% share of the Nordics courier express parcel market share in 2025 and are projected to grow at a 4.64% CAGR. Their high density and frequency make them well-suited for electric vans and cargo bikes, supporting urban zero-emission mandates and more efficient last-mile delivery models.
Medium-weight boxes continue to serve industrial and healthcare niches, where reliability and handling standards are critical for sensitive or time-bound shipments. Meanwhile, heavy parcels persist for oversized components but face network constraints, as manual handling reduces route throughput and increases insurance and operational costs.
Note: Segment shares of all individual segments available upon report purchase
By Speed of Delivery: Express Premium Justifies Technology Investment
Non-express moves account for 75.69% of the Nordics courier express parcel market size in 2025, but express services are projected to grow at the highest CAGR of 4.85%. AI-powered dispatching is significantly improving delivery efficiency, trimming average door-to-door times to under two hours in dense urban cores like Copenhagen and Stockholm, and enabling carriers to command rates 25-30% higher than standard services.
Non-express services maintain a cost-efficient positioning for shipments that can accommodate 2-5-day delivery windows, appealing to both businesses and price-sensitive consumers. Locker pickup networks and flexible delivery options, such as rerouting and scheduled drop-offs, help sustain high customer satisfaction without incurring premium charges.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Air Growth Outpaces Road Despite Infrastructure Constraints
Air shipments are projected to grow at a 5.18% CAGR, driven by rising demand for time-critical industrial components and high-value electronics that require speed and reliability. Strategic developments such as DSV’s Schenker deal, which adds 2.4 million tons of annual air capacity, are further strengthening access to constrained Nordic cargo slots and enhancing network resilience.
Road transport continues to dominate with a 51.37% market share, supported by its cost efficiency, flexibility, and indispensable role in last-mile delivery. Government-backed green corridor initiatives are accelerating the rollout of electric trucks, helping mitigate diesel price volatility while aligning with regional decarbonization goals.
Geography Analysis
Sweden led with 35.51% share in 2025, underpinned by Stockholm’s e-commerce density and advanced locker footprint. High return rates inflate parcel counts further, making reverse logistics a core competence. Sweden’s urban freight ecosystem enables as many as four delivery waves per day, sustaining rapid grocery and fashion fulfillment.
Finland logs the fastest 4.29% CAGR on expectations that Rail Nordica will slash cross-border transit times. Denmark leverages its pharmaceutical cluster but battles airport congestion, while Norway’s zero-emission mandates reward early electric-fleet adopters. Iceland retains premium air-freight pricing due to its insular geography.
Finland’s e-commerce consumers display high cross-border spending, necessitating customs-cleared express lanes. Anticipated rail links to the Baltics promise modal diversification and carbon savings once live. Norway’s rugged terrain favors regional air uplift, yet strict urban emissions policies accelerate van electrification. Iceland, though minute in volume, commands above-average revenue per parcel because air is the only viable mode. Collectively, Nordic national strategies around sustainability, digitalization, and infrastructure modernization will decide future share shifts[3]Posten Bring, “New CEO at Posten Bring,” POSTENBRING.NO .
Competitive Landscape
The Nordic CEP market is highly concentrated, with the top five players holding 90% share and a concentration score of 9/10. DSV’s EUR 14.3 billion (USD 16.5 billion) Schenker acquisition has created a EUR 41.6 billion (USD 48 billion) leader, strengthening scale advantages in capacity procurement and technology investment. This enables greater spending on AI, automation, and cybersecurity, raising entry barriers. As a result, competition is increasingly driven by scale and network efficiency.
Major players are also expanding into high-value segments. DHL’s EUR 2 billion (USD 2.31 billion) push into healthcare logistics and UPS’s acquisitions of Frigo-Trans and BPL highlight a growing focus on cold-chain and specialized services. These segments offer higher margins and stronger differentiation. At the same time, digital platforms and real-time visibility are becoming standard expectations. This is shifting the market toward integrated logistics solutions[4]FedEx, “FedEx Opens New Logistics Center at Tallinn Airport,” FEDEX.COM.
Smaller couriers face pressure from rising compliance and tech requirements. NIS2 regulations and the need for advanced tracking systems are increasing costs and complexity. Many are moving toward consolidation or niche specialization. Key differentiators now include AI capabilities, reverse logistics, and zero-emission fleets. Competition is shifting from price toward innovation and service quality.
Nordics Courier, Express, And Parcel (CEP) Industry Leaders
PostNord
Posten Bring AS
DHL Group
DSV A/S (Including DB Schenker)
United Parcel Service (UPS)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2026: UPS announced the expansion of its UPS HealthTech™ service in Europe to provide specialised logistics solutions for medical equipment and healthcare supply chains.
- September 2025: PostNord TPL’s extended partnership with Evanoff Group builds on a relationship that has existed since 2020 and will run for another two years from September 1, 2025.
- July 2025: Posten Bring AS Strengthened delivery and fulfilment operations in Sweden by relocating Bring Sweden’s fulfilment service to a new 11,000 m² hub in Åstorp and expanded its parcel locker network to over 3,000 sites.
- April 2025: DSV completed the EUR 14.3 billion (USD 16.5 billion) takeover of DB Schenker, projecting DKK 9 billion in annual synergies by 2028.
Nordics Courier, Express, And Parcel (CEP) Market Report Scope
| 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 |
| Denmark |
| Finland |
| Iceland |
| Norway |
| Sweden |
| 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 | |
| Country | Denmark |
| Finland | |
| Iceland | |
| Norway | |
| Sweden |
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
