Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 660.24 Billion |
| Market Size (2030) | USD 797.29 Billion |
| Growth Rate (2025 - 2030) | 3.84% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
North America Road Freight Transport Market Analysis by Mordor Intelligence
The North America road freight transport market size is currently valued at USD 660.24 billion and is projected to reach USD 797.29 billion by 2030, registering a 3.84% CAGR over 2025-2030. This trajectory positions the North America road freight transport market as a steady growth environment sustained by industrial resilience, policy-backed infrastructure upgrades, and rising e-commerce volumes. Nearshoring to Mexico, USMCA-enabled cross-border trade, and inventory decentralization are reshaping freight flows toward shorter-haul, higher-frequency lanes. Shippers continue to favor Full-Truck-Load (FTL) services for cost efficiency, yet the structural rise of Less-than-Truck-Load (LTL) reflects mounting demand for flexible capacity and shipment consolidation. Competitive intensity remains elevated as scale-oriented carriers acquire specialized providers, while widespread adoption of autonomous driving pilots and zero-emission powertrains signals a technology-driven productivity leap. Regulatory trends—most notably greenhouse-gas limits and axle-weight revisions—create compliance costs that smaller fleets struggle to absorb, reinforcing consolidation momentum.
Key Report Takeaways
- By end user industry, manufacturing led with 32.15% of the North America road freight transport market share in 2024, while wholesale and retail trade is set to expand at a 4.42% CAGR between 2025 and 2030.
- By destination, domestic movements accounted for 62.76% of the North America road freight transport market size in 2024; international traffic is forecast to grow at a 4.47% CAGR between 2025-2030.
- By truckload specification, FTL commanded a 79.98% share of the revenue in 2024, whereas LTL is projected to advance at a 4.30% CAGR between 2025 and 2030.
- By containerization, non-containerized freight captured 85.76% of the revenue share in 2024, whereas containerized cargo is poised to register a 3.93% CAGR between 2025 and 2030.
- By distance, long-haul services held 72.40% revenue share in 2024 and are forecast to rise at a 4.04% CAGR between 2025 and 2030.
- By goods configuration, solid goods accounted for 72.54% share of the revenue in 2024; fluid goods are projected to increase at a 4.19% CAGR during 2025-2030.
- By temperature control, non-temperature-controlled freight dominated with 94.72% share in 2024, while the temperature-controlled segment is forecast to grow at a 4.24% CAGR between 2025 and 2030.
- By country, the United States contributed 85.38% revenue share in 2024, whereas Mexico is the fastest-growing country with a 5.23% CAGR projected over 2025-2030.
North America Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce last-mile boom | +1.2% | United States and Canada; spillover to Mexico | Short term (≤ 2 years) |
| Government infrastructure stimulus | +0.8% | United States; cross-border corridors | Medium term (2-4 years) |
| USMCA-fueled cross-border volumes | +0.9% | Border regions | Medium term (2-4 years) |
| Near-shoring shift to Mexico | +0.7% | Mexican manufacturing hubs | Long term (≥ 4 years) |
| Autonomous-truck corridor roll-outs | +0.3% | Texas, Arizona highways | Long term (≥ 4 years) |
| Hydrogen-truck adoption momentum | +0.2% | California, Pacific Northwest | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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E-commerce Last-Mile Boom
Short-haul freight under 100 miles grew 20% annually through 2024 as retailers moved stock closer to consumers to meet same-day delivery promises. Dense metropolitan demand strains terminal capacity and intensifies competition for drivers who can navigate urban restrictions. Grocery and pharmaceutical e-commerce channels push temperature-controlled freight investment, prompting carriers to expand refrigerated fleets. Route-optimization algorithms focus on stop density rather than distance, advantaging regional specialists with urban expertise. Local ordinances on delivery time windows and zero-emission zones accelerate early adoption of battery-electric vans for final-mile routes[1]Federal Highway Administration, “Bipartisan Infrastructure Law Funding Fact Sheet,” fhwa.dot.gov.
Government Infrastructure Stimulus
The Infrastructure Investment and Jobs Act earmarks USD 110 billion for highways and bridges, unlocking lane additions and bottleneck removals that lower transit times and boost truck productivity. Minnesota identified 22 freight chokepoints causing over 4 hours of daily truck delay per mile; similar pain points exist in Illinois, Texas, and California[2]Minnesota Department of Transportation, “State Freight Plan—Bottleneck Analysis,” minnesotago.org. Project completions scheduled between 2025-2028 will expand capacity on key corridors such as I-35 and I-95, although construction detours may temporarily suppress throughput. Better pavement quality reduces maintenance expenses, extending tractor-trailer life cycles and lowering the total cost of ownership.
USMCA-Fueled Cross-Border Volumes
Trade facilitation under USMCA trims paperwork and harmonizes safety regulations, enabling smoother truck flows at Laredo, El Paso, and Detroit crossings. Bison Transport and Canadian Pacific Kansas City launched a unified truck-rail service connecting Canada and Mexico, illustrating modal collaboration to exploit north–south demand[3]Canadian Pacific Kansas City & Bison Transport, “Multimodal Service Agreement Announcement,” bisontransport.com. Reduced customs dwell times improve asset turns and entice manufacturers to position inventory on both sides of the border. Infrastructure upgrades at major ports of entry, such as additional inspection booths, further elevate effective capacity.
Near-Shoring Shift to Mexico
Manufacturers relocating electronics and auto parts lines to Monterrey and Guanajuato drive balanced northbound finished goods and southbound raw-material flows. Mexico’s 5.23% CAGR between 2025 and 2030 mirrors this structural realignment as firms seek lower transportation risk and faster replenishment cycles compared with Asian sourcing. U.S. carriers add bilingual dispatch teams and freight brokerage units in border states to capture this growth. Rules-of-origin checks heighten paperwork requirements but offer policy certainty that underpins investment in specialized drop-and-hook yards near customs zones.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver shortage and wage inflation | -0.9% | United States and Canada | Short term (≤ 2 years) |
| Fuel-price volatility | -0.6% | North America-wide | Short term (≤ 2 years) |
| Stricter axle-weight/GHG rules | -0.4% | United States and Canada | Medium term (2-4 years) |
| Modal shift to rail-intermodal | -0.5% | Transcontinental corridors | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage and Wage Inflation
Retirements outpace new Commercial Driver’s License entrants, leaving fleets short by an estimated 80,000 drivers in 2024. Carrier surveys cite double-digit pay increases, retention bonuses, and schedule flexibility as key cost escalators. Specialized segments—hazmat, oversized, and refrigerated—face steeper shortages due to extra certification hurdles. Lifestyle factors and hours-of-service limits deter younger recruits, compelling fleets to invest in driver-assist technology and drop-trailer programs to reduce waiting times.
Fuel-Price Volatility
Retail diesel averaged USD 3.50 per gallon in early 2025, down from 2024 highs yet vulnerable to refinery outages and geopolitical shocks[4]Aurora Innovation, “Commercial Autonomous Pilot Results,” translogisticsinc.com. Fuel-surcharge pass-throughs cushion carriers, but competitive lanes often see lagged recovery. High variability complicates capital planning for alternative-fuel tractors whose payback hinges on diesel price spreads.
Segment Analysis
By End User Industry: Manufacturing Remains the Anchor
Manufacturing generated 32.15% of 2024 revenue, the highest slice of the North America road freight transport market share. Metals, machinery, and automotive parts dominate outbound lane volume, while inbound raw-material flows maintain steady trailer turns. The North America road freight transport market size tied to wholesale and retail trade is poised for faster expansion, aided by omnichannel inventory strategies and micro-fulfillment buildouts.
Wholesale and retail traders reorder stock more frequently and in smaller quantities, fueling LTL shipment growth, and are projected to grow at a CAGR of 4.42% between 2025-2030. Construction freight absorbs a meaningful uplift from stimulus-funded projects, whereas oil-and-gas cargoes fluctuate with commodity cycles. Renewable-energy components—turbine blades, solar panels, and battery packs—enter the “Others” bucket and demand specialized equipment and escorts.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Leads, International Accelerates
Domestic hauls represented 62.76% of 2024 turnover, reflecting extensive intra-U.S. and intra-Canada distribution networks. Stable regional contracts anchor fleet utilization and limit customs risk, keeping the North America road freight transport market robust during economic swings.
International volumes, while smaller, eye a 4.47% CAGR between 2025-2030. Lower border dwell times and harmonized documentation under USMCA attract shippers seeking one-bill cross-border solutions. Large carriers embed bilingual customer service and bonded warehousing to capitalize on the upswing.
By Truckload Specification: FTL Still Dominant
FTL held 79.98% of 2024 sales, underscoring shippers’ preference for door-to-door speed and limited handling. Seasonality spikes, notably retail holiday peaks, tighten FTL capacity, pushing spot rates upward and opening openings for contract renegotiations tethered to diesel indexation. The North America road freight transport market size captured by LTL is smaller but should grow faster with a CAGR of 4.30% between 2025-2030 on the back of e-commerce returns and SME shipping needs.
Regional LTL specialists invest heavily in cross-dock automation and API connectivity so customers can rate-shop and track in real time. Knight-Swift’s ambition to build a national LTL grid by 2026 illustrates how asset-heavy truckload incumbents diversify toward more balanced revenue streams.
By Containerization: Bulk Still Rules
Non-containerized freight owned 85.76% of 2024 receipts, led by building materials, agricultural bulk, and project cargo that outsize ISO container dimensions. Specialized open-deck and hopper trailers incur higher capital expenditure yet command premium rates.
Containerized cargo, forecast at a 3.93% CAGR between 2025-2030, benefits from inland port development and improved chassis availability, enabling seamless truck-rail-ocean transfers that extend shipper reach.
By Distance: Long-Haul Commands Revenue
Long-haul trips delivered 72.40% of the 2024 value and should notch a 4.04% CAGR between 2025-2030. Despite gradual length-of-haul contraction, transcontinental lanes involving consumer electronics and fashion remain predominantly truck-centric when delivery windows compress below five days.
Short-haul gains ground in urban corridors where fulfillment centers mushroom, but revenue intensity per mile remains lower.
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By Goods Configuration: Solid Goods Predominate
Solid goods captured 72.54% of sales, covering everything from palletized consumer items to steel coils. Fluid goods, projected at a 4.19% CAGR between 2025-2030, rely on specialized tankers and stringent wash-out standards.
Chemical and food-grade fleets increase sensor deployments to pre-empt contamination and leak hazards.
By Temperature Control: Ambient Freight Overshadows Cold Chain
Non-temperature-controlled lanes amassed 94.72% of 2024 turnover. Nonetheless, temperature-controlled hauls are climbing faster at 4.24% CAGR between 2025-2030, propelled by frozen meal demand and pharmaceutical cold-chain mandates.
Carriers retrofit trailers with telematics-enabled reefer units to ensure end-to-end temperature compliance.
Geography Analysis
The United States accounted for 85.38% of 2024 revenue, cementing its role as the pivot of the North America road freight transport market. Freight density stretches from Midwest manufacturing belts to Southeastern population centers, yet chronic congestion persists on I-80, I-95, and I-5 corridors. Federal funding funnels toward lane-widening and bridge resurfacing to relieve these choke points.
Mexico is the standout growth engine, forecast at a 5.23% CAGR between 2025-2030. Industrial clusters in Nuevo León and Bajío attract supply-chain relocations, prompting fleets to bolster cross-dock capacity at Laredo and El Paso. TFI International’s 2024 acquisitions of flatbed and tanker outfits enhance service breadth for north-south lanes.
Canada shows stable expansion anchored by natural-resource exports and retail replenishment to its dispersed urban centers. Harsh winter conditions prompt higher equipment spec—full under-carriage corrosion protection and auxiliary heaters—raising operating costs but preserving load integrity.
Competitive Landscape
The market is fragmented, yet the top carriers intensify slight consolidation to secure density and diversify services. Estes acquired 11 terminals and 1,215 dock doors from the defunct Yellow Corp., pushing its door total beyond 12,000 and tightening its grip on the central and southeastern US. DSV’s USD 15.8 billion takeover of DB Schenker, finalized in April 2025, forms a global heavyweight with integrated European-North American corridors.
Technology is the new battleground. Aurora, Embark, and Kodiak run autonomous trials with Tier-1 carriers to unlock night-time asset utilization and mitigate driver scarcity. Fleets pilot hydrogen and battery-electric rigs to meet customer emissions targets and remain eligible for green freight tenders. Mid-caps hedge with telematics-driven predictive maintenance and digital freight-matching alliances.
White-space remains in temperature-controlled, oversized, and hazardous-materials lanes that demand regulatory expertise and specialized gear. Private-equity investors eye these niches, funding roll-ups of regional specialists to create national footprints.
North America Road Freight Transport Industry Leaders
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C.H. Robinson
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FedEx
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J.B. Hunt Transport, Inc.
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Knight-Swift Transportation Holdings Inc.
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Old Dominion Freight Line
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2025: C.H. Robinson launched a U.S.–Mexico consolidation program promising up to 40% shipper cost savings and 48-hour earlier visibility.
- May 2025: DHL Supply Chain acquired IDS Fulfillment to broaden small-parcel and SME e-commerce offerings in the United States.
- January 2025: DSV closed its EUR 14.3 billion (USD 15.8 billion) purchase of DB Schenker, enhancing trans-Atlantic freight reach.
- December 2024: Canada Cartage signed an agreement to buy Coastal Pacific Xpress, adding refrigerated TL and LTL coverage in Western Canada and the U.S.
North America Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control. Canada, Mexico, United States are covered as segments by Country.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
Country
| United States |
| Canada |
| Mexico |
| Rest of North America |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled | |
| Country | United States |
| Canada | |
| Mexico | |
| Rest of North America |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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