Pakistan Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.95 Billion |
| Market Size (2030) | USD 3.64 Billion |
| Growth Rate (2025 - 2030) | 4.29% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Pakistan Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Pakistan courier express parcel market size stands at USD 2.95 billion in 2025 and is projected to reach USD 3.64 billion by 2030, reflecting a 4.29% CAGR between 2025-2030. This steady climb stems from expanded e-commerce activity, rising smartphone penetration, and infrastructure upgrades tied to the China–Pakistan Economic Corridor. Competitive intensity is gaining pace as fintech-enabled logistics models compress delivery times and inject working-capital solutions into last-mile operations. Private operators continue to widen service menus, yet government efforts to digitize Pakistan Post and modernize sorting hubs underscore a developing public-sector challenge. Economic corridors linking Gwadar Port with northern trade routes shorten cross-border shipment times, while the dominance of cash-on-delivery transactions still weighs on liquidity management for parcel companies.
Key Report Takeaways
- By destination, domestic flows held 64.16% of the Pakistan courier express parcel market share in 2024, while international volumes are growing at a 4.44% CAGR between 2025-2030.
- By speed of delivery, non-express services controlled 73.66% of the Pakistan courier express parcel market size in 2024, yet express shipments are advancing at a 4.87% CAGR between 2025-2030.
- By model, the business-to-consumer (B2C) segment captured 52.01% share of the Pakistan courier express parcel market in 2024, while consumer-to-consumer (C2C) parcels record the highest forecast CAGR of 3.57% over 2025–2030.
- By shipment weight, lightweight shipments accounted for 58.64% of the Pakistan courier express parcel market size in 2024; heavyweight shipments are set to expand at a 3.75% CAGR between 2025-2030.
- By mode of transport, road retained a 51.39% share of the Pakistan courier express parcel market in 2024, whereas air transport exhibits a projected 3.65% CAGR between 2025-2030.
- By end user, e-commerce commanded 42.48% share of the Pakistan courier express parcel market in 2024, while healthcare parcels are the fastest mover at a 4.50% CAGR between 2025-2030.
Pakistan Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom accelerating parcel volumes | +1.2% | National, concentrated in Karachi, Lahore, Islamabad | Medium term (2-4 years) |
| Rising smartphone and internet penetration | +0.8% | National, expanding to tier-2 cities | Long term (≥ 4 years) |
| Government digitization of Pakistan Post | +0.5% | National, rural areas priority | Long term (≥ 4 years) |
| CPEC-linked cross-border trade growth | +0.7% | Northern corridors, Gwadar Port region | Medium term (2-4 years) |
| Social-commerce demand for same-day delivery | +0.4% | Urban centers, metropolitan areas | Short term (≤ 2 years) |
| Fintech-integrated COD solutions boosting trust | +0.3% | National, mobile wallet expansion areas | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
E-commerce Boom Accelerating Parcel Volumes
Double-digit online retail growth is reshaping the Pakistan courier express parcel market. Marketplace leaders aggregate dense order clusters that allow couriers to optimize hub-and-spoke routes and invest in automated sorters. Concentrated demand in Karachi, Lahore, and Islamabad supports high daily stop density, while new digital merchants from tier-2 cities expand geographic reach. Although cash-on-delivery still dominates payment preferences, fintech integrations now streamline collection and reconciliation, limiting idle cash and shortening settlement cycles[1]International Trade Administration, “Pakistan – eCommerce,” trade.gov. Rising festive-season peaks prompt investments in overflow capacity and seasonal delivery crews, bolstering employment opportunities across last-mile fleets.
Rising Smartphone and Internet Penetration
Smartphones now serve as the primary customer interface for booking, tracking, and paying for parcel services. GSMA Intelligence notes that falling data tariffs and wide-screen entry-level devices have unlocked first-time e-commerce users across secondary cities. Social-commerce entrepreneurs capitalize on live-stream sales and require same-day fulfillment, thereby pushing couriers toward micro-fulfillment sites within city limits. Real-time notifications and driver geolocation boost delivery success, reducing costly second attempts. As the State Bank’s Raast platform broadens instant-payment adoption, parcel firms plan to phase down cash handling, freeing driver time for additional stops[2]GSMA Intelligence, “Mobile Economy Asia Pacific 2025,” gsma.com.
Government Digitization of Pakistan Post
Pakistan Post is overhauling its 10,293-office network with track-and-trace apps, self-service kiosks, and electronic money orders. The program’s public–private partnership model seeks foreign investment to upgrade sorting hubs and vehicle fleets[3]The Express Tribune, “Pakistan Post launches new mobile app in major revamp efforts,” tribune.com.pk. Greater digital capability positions the public operator as a low-cost rival in rural markets where private couriers struggle to achieve density. Yet chronic branch losses and legacy payroll costs constrain reinvestment capacity, signaling continued opportunity for cooperative models in deep-rural deliveries.
CPEC-Linked Cross-Border Trade Growth
High-speed road links from Gwadar to Khunjerab have shortened road transit between western China and Arabian Sea ports to about 10 days, a major improvement over historical sea routes[4]IEEE-SEM, “CPEC Infrastructure Efficiency Study,” ieee-sem.com. Duty-free zones and extended tax holidays at Gwadar spur demand for warehousing and regional fulfillment hubs. Textile, electronics, and light-machinery imports now flow directly to inland distribution centers instead of detouring via Karachi. Regulation still mandates joint-venture structures and vehicle-fleet thresholds for foreign entrants, limiting rapid market share gains by global integrators.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Poor road infrastructure outside main corridors | -0.9% | Rural areas, secondary cities | Long term (≥ 4 years) |
| Security, customs and taxation delays | -0.5% | Border areas, international corridors | Medium term (2-4 years) |
| High fuel price volatility impacting margins | -0.6% | National, affects all transport modes | Short term (≤ 2 years) |
| Lack of cold-chain small-parcel capability | -0.3% | Urban centers, pharmaceutical distribution | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Poor Road Infrastructure Outside Main Corridors
Rural roadways suffer from limited axle-load enforcement and periodic flood damage that erodes pavement quality, raising vehicle maintenance costs and slowing average speeds to under 30 km/h. Sparse parcel density in these zones compounds the issue, as couriers must cover long distances for each stop, raising cost per delivery well above urban equivalents. Seasonal harvesting peaks further congest backroads, delaying time-sensitive healthcare shipments and forcing operators to redesign trunk routes toward railheads where feasible. Expanded CPEC feeder roads promise relief, but full utility depends on local municipalities funding connecting by-lanes to village centers.
High Fuel Price Volatility Impacting Margins
Global oil price swings transmit quickly to domestic diesel tariffs. When fuel costs spike, couriers face immediate pressure because service contracts often lock prices quarter-to-quarter. Smaller fleets lack hedging tools and must add emergency surcharges that erode customer loyalty. Energy-efficient routing, load pooling, and cargo-bike trials in inner-city zones are emerging mitigations. The Finance Act 2025’s new 2% withholding obligation on cash-on-delivery transactions tightens working capital and limits room to absorb future fuel shocks.
Segment Analysis
By End User Industry: E-commerce Core, Healthcare Rising
E-commerce retained a 42.48% share in the Pakistan courier express parcel market, generating high-volume, high-frequency pickups. Category diversification into fast-moving consumer goods triggers demand for temperature-controlled micro-fulfillment spaces. Seller dashboards integrated with courier APIs enable automated shipping label creation and proactive delivery-status alerts to buyers.
Healthcare is the fastest-growing end user, expanding at a 4.50% CAGR between 2025-2030. E-pharmacy platforms contract third-party couriers certified for cold-chain handling of biologics. Smart-box solutions equipped with passive gel packs protect temperature integrity for up to 48 hours, supporting nationwide reach. Regulatory scrutiny around counterfeit medicines elevates the need for chain-of-custody transparency, positioning tech-forward couriers for premium rates.
Note: Segment shares of all individual segments available upon report purchase
By Destination: Domestic Stability With Quickening International Momentum
Domestic consignments dominated the Pakistan courier express parcel market size, contributing 64.16% share in 2024. Dense urban clusters and established intercity networks help couriers maintain overnight service between Karachi, Lahore, and Islamabad. Address normalization tools and rider familiarity with local neighborhoods enhance first-attempt success rates. The recent shift by utility firms toward paperless billing reduces letter-mail volumes, allowing parcel-focused couriers to repurpose sorting lines for e-commerce spikes.
International parcels, currently at 35.84% share, are forecast to grow at 4.44% CAGR between 2025-2030 as free-trade expansions with China and Central Asia remove tariffs on 6,700 product lines. Export-oriented textiles rely on global integrators for time-critical deliveries to U.S. buyers, while inbound electronics favor cross-dock solutions near airports. Customs modernization pilots now enable pre-arrival data submission, trimming clearance windows, and supporting higher express adoption. Ongoing geopolitical constraints around border security moderate the growth trajectory, yet CPEC land routes offer a compelling alternative to congested deep-sea options.
By Speed of Delivery: Non-Express Scale Meets Express Agility
Non-express services held 73.66% of the Pakistan courier express parcel market in 2024, leveraging cost sensitivity among both merchants and consumers. Two-day door-to-door offerings remain adequate for fashion, books, and bulk corporate mail. Automation in sortation hubs has reduced per-parcel handling cost, cementing the non-express segment’s price advantage.
Express deliveries, advancing at a 4.87% CAGR between 2025-2030, capture spontaneous buying in social-commerce channels. Same-day groceries and medication refills require time windows of under two hours during peak traffic. TCS operates a Karachi–Lahore–Islamabad night-air loop to honor next-morning guarantees, illustrating how dedicated air belly space underpins premium service. Urban congestion threatens consistency, prompting investments in algorithmic dispatch and cargo-bike fleets for the last mile.
By Shipment Weight: Light Parcels Lead, Heavy Parcels Accelerate
Light-weight shipments contributed 58.64% share of the Pakistan courier express parcel market in 2024, powered by electronics accessories and apparel. Standardized cartons travel efficiently on conveyor lines, and volumetric pricing encourages merchants to optimize packaging. Insured delivery options and return-management portals further improve consumer confidence.
Heavy-weight shipments are growing at a 3.75% CAGR between 2025-2030 as online furniture and appliances gain traction. Couriers have introduced white-glove delivery, assembly, and reverse logistics to command premium fees. Medium-weight consignments, spanning bulk cosmetics and business supplies, benefit from consolidated line-haul moves and scheduled urban drops. The diversification of weight bands improves network load factors, raising overall revenue per vehicle.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Road Resilience, Airway Expansion
Road transport held a 51.39% share of the Pakistan courier express parcel market size during 2024. Hub-and-spoke road grids support overnight connections across the 1,147-kilometer Karachi–Lahore motorway, while branch offices use light vans and motorcycles for final delivery. Weight restrictions and toll adjustments under the National Highway Authority remain cost variables.
Air transport, although smaller today, is set for a 3.65% CAGR between 2025-2030 because network airlines increase cargo allocations on intercity flights. Sharjah-based transfer routes now enable two-day delivery from East Asia to Pakistan, broadening express supply lines. Rail remains a marginal player, yet frequency on the north–south corridor has risen to five daily freight services, opening possibilities for bulk e-commerce trunking.
By Model: B2C Dominance, Emerging C2C Surge
B2C consignments retained a 52.01% share in the Pakistan courier express parcel market, sustained by the scale of flagship marketplaces that negotiate volume-based tariffs. Large e-tailers pre-sort orders before line-haul pickup, enabling quick cross-docking at courier hubs. Cash-on-delivery reconciliation still inflates payment cycles, but merchants adopt escrow wallets that release funds upon delivery verification.
C2C parcels, led by peer marketplaces, demonstrate the market’s fastest CAGR at 3.57% between 2025-2030. Individual sellers tap courier APIs for pickup scheduling, bridging gaps in traditional postal coverage. Business-to-business flows continue to anchor steady volumes in pharmaceuticals, textiles, and auto parts; yet digitized document exchange is reducing legacy envelope traffic. PostEx’s blended logistics-plus-financing model illustrates how operator revenue pools now include merchant credit, solidifying diversified income streams.
Geography Analysis
The Karachi–Lahore–Islamabad triangle generates a disproportionate share of parcel volumes, backed by high population density and economic concentration. Karachi handles nearly all containerized imports, enabling swift cross-docking for domestic redistribution. The city’s integrated port and airport ecosystem supports multimodal parcel flow, while challenges remain in inner-city congestion during evening peaks.
Punjab province posts the highest regional growth as Lahore emerges as a technology and fulfillment hub. Motorway connectivity allows same-night truck runs to Sialkot’s export-oriented clusters, and SMEs leverage courier partnerships to ship directly to overseas buyers via express services. Across Faisalabad’s industrial zones, textile exporters rely on bonded trucking to airport cargo terminals, compressing lead times for fashion-season launches.
Remote districts in Khyber Pakhtunkhwa and Balochistan confront rugged terrain and intermittent security issues that impede first-mile collection. CPEC fiber-optic corridors now extend digital commerce even to high-altitude communities, though physical access still depends on feeder-road upgrades. Private couriers collaborate with Pakistan Post’s rural offices through drop-and-collect models that limit duplicate network investments and widen service footprints.
Competitive Landscape
Pakistan’s parcel field features a blend of local champions and global integrators; however, the market is moderately consolidated. TCS and Leopards maintain extensive domestic branches and proprietary air loops, granting full control over service quality and stop density. BlueEX focuses on same-day e-commerce fulfillment, while Pakistan Post leverages its unmatched rural reach to tap public-sector contracts. International operators DHL, FedEx, and UPS concentrate on time-definite cross-border shipments for export manufacturers, using customs-clearance expertise as a competitive wedge.
Fintech-enabled entrants redefine value propositions. PostEx pairs parcel delivery with invoice factoring, accelerating merchant liquidity and embedding the courier into the seller’s cash cycle. Secure Logistics Group’s 2025 acquisition of Trax Online signals consolidation momentum among mid-tier players seeking economies of scale. Technology adoption ranges from artificial-intelligence route planning to mobile payment pods that accept Raast QR codes, elevating the customer experience and cutting failed-delivery rates.
Regulatory shifts now influence market concentration. The 2% withholding requirement under the Finance Act 2025 raises compliance costs that smaller couriers struggle to absorb. Firms with robust enterprise resource planning systems meet tax obligations seamlessly, drawing premium accounts away from fragmented competitors. As capital expenditures rise for automated sorters and electric vehicle pilots, mid-market players are expected to pursue strategic alliances to stay relevant.
Pakistan Courier, Express, And Parcel (CEP) Industry Leaders
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TCS Pvt. Ltd.
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Leopards Courier Services
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BlueEX
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M&P Courier
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DHL Group
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: The Competition Commission of Pakistan approves Secure Logistics Group’s 100% acquisition of Trax Online under a share purchase agreement.
- October 2024: UPS adds a Sharjah flight connection, cutting transit time from East Asia to Pakistan to two business days for 35 destination countries.
- August 2024: BlueEX Limited discloses interest in acquiring a domestic e-commerce logistics operation to deepen its parcel footprint.
- August 2024: PostEx raises USD 7.3 million to expand its logistics and merchant-financing platform into the Middle East and North Africa markets.
Pakistan Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
