Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.33 Billion |
| Market Size (2030) | USD 1.85 Billion |
| Growth Rate (2025 - 2030) | 6.89% 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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Philippines Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Philippines courier, express, and parcel market size stands at USD 1.33 billion in 2025 and is projected to touch USD 1.85 billion by 2030, expanding at a 6.89% CAGR between 2025-2030. This growth is propelled by surging e-commerce volumes, sustained infrastructure investment, and the country’s archipelagic geography, which together create a large addressable base for island-to-island delivery solutions. Intensifying competition, regulatory modernization, and rising consumer expectations for real-time visibility are prompting operators to upgrade technology stacks and redesign hub-and-spoke models. Consolidation pressure is growing as fuel price volatility and asset-heavy network requirements strain smaller fleets, while scale players leverage automation to protect margins. As a result, the Philippines courier, express, and parcel market is evolving from a volume-oriented model toward a technology-enabled, service-differentiated landscape that prizes speed, reliability, and geographic reach.
- By destination, domestic shipments captured 64.98% of the Philippines courier, express, and parcel market share in 2024, while international shipments are set to accelerate at a 7.14% CAGR between 2025-2030.
- By speed of delivery, non-express deliveries held 72.74% of the Philippines courier, express, and parcel market size in 2024; the express segment is forecast to post a 7.78% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) flows commanded 57.13% of 2024 value; consumer-to-consumer (C2C) shipments are poised for a 4.15% CAGR over 2025-2030.
- By shipment weight, light weight parcels accounted for 67.68% share in 2024, whereas heavy parcels are projected to grow at a 5.41% CAGR between 2025-2030.
- By mode, road transport secured 51.35% share in 2024, and air freight is expected to rise at a 5.85% CAGR between 2025-2030.
- By end user industry, e-commerce generated 42.72% of 2024 demand, with healthcare deliveries advancing at a 7.23% CAGR between 2025-2030.
Philippines Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce order volumes | +2.1% | National, especially Metro Manila and Cebu | Short term (≤ 2 years) |
| Same-day / instant delivery preference in Metro Manila | +1.3% | Metro Manila, Greater Manila | Medium term (2-4 years) |
| MSME digital-selling boom outside NCR | +1.8% | Provincial Visayas and Mindanao | Medium term (2-4 years) |
| Government "Build Better More" logistics corridors | +0.9% | National, Luzon-Visayas-Mindanao routes | Long term (≥ 4 years) |
| Rider-security regulations widening workforce supply | +0.7% | Urban hubs nationwide | Short term (≤ 2 years) |
| Drone and autonomous delivery pilots | +0.4% | Remote islands such as Palawan | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Explosive E-Commerce Order Volumes
Transaction values are expected to represent 5.5% of national GDP in 2025, tripling the average parcel frequency per consumer and stretching existing sortation capacity. Operators are pivoting to high-throughput automation and dynamic routing tools that can orchestrate multiple transport modes across 7,641 islands. Modular hubs, scalable software, and data-driven capacity planning are enabling the Philippines courier, express, and parcel market to absorb a wave of small, frequent shipments without proportionate cost increases. Retail categories led by consumer electronics and fashion are compressing average parcel revenue yet boosting overall volume, rewarding carriers that achieve densification at the route level. E-commerce platforms increasingly condition tender awards on guaranteed delivery windows, pushing carriers toward predictive analytics and real-time visibility. Investments in robotic sorters and application-programming-interface integrations are becoming table stakes for relevance in the Philippines courier, express, and parcel industry[1]“E-Commerce Philippines 2025 Roadmap,” Department of Trade and Industry, dti.gov.ph.
Same-Day / Instant Delivery Preference in Metro Manila
Metro Manila houses 13 million residents within a dense road network where traffic congestion paradoxically favors nimble motorcycle fleets over vans. Same-day arrival has shifted from premium to baseline expectation, prompting couriers to roll out micro-fulfillment nodes inside the metropolis. These nodes shorten stem mileage, lower failed-delivery risk, and enable tighter two-hour delivery windows. Real-time tracking, automated proof-of-delivery, and proactive customer notifications are now standard features across leading platforms. Carriers that fail to meet visibility benchmarks risk customer churn as app-based challengers capture share with transparent, GPS-enabled service. To meet the capital intensity of same-day service, larger players are experimenting with asset-light franchise models that blend company-owned hubs with crowd-sourced rider supply, reinforcing the network density that underpins express profitability within the Philippines courier, express, and parcel market[2]“National Logistics Cost Study,” Bureau of Customs, customs.gov.ph.
MSME Digital-Selling Boom Outside NCR
Negosyo Centers under the Department of Trade and Industry have scaled to more than 129 locations, equipping provincial entrepreneurs with e-commerce onboarding, payment gateways, and logistics matchmaking. Direct-to-consumer agriculture, regional handicrafts, and processed foods now ship from secondary cities to both urban and remote barangays, diversifying parcel origin-destination patterns. Couriers are extending last-mile coverage through partnerships with provincial bus lines and third-party transport cooperatives, allowing parcel injection into existing passenger routes at marginal cost. Cold-chain pilot lanes supporting farm-to-city perishables are emerging, foreshadowing a broader service portfolio beyond ambient parcels. As MSME volumes rise, delivery networks are adapting fixed asset footprints and tariff structures to sustain unit economics while maintaining rural service reliability within the Philippines courier, express, and parcel market.
Government “Build Better More” Logistics Corridors
The USD 180 billion infrastructure plan aims to trim logistics costs from 27% of GDP in 2024 to below 20% by 2028. New Luzon-Visayas-Mindanao corridors, widened roll-on / roll-off capacity, and port modernization projects reduce inter-island transit times, shrinking inventory buffers and elevating on-time performance. Digital customs platforms support advance electronic clearance, shaving two to three days off international parcel dwell. Over the long term, better modal connectivity is expected to shift portions of domestic flow from congested north-south road lanes to multimodal sea-road routes, unlocking fresh network design options for the Philippines courier, express, and parcel industry.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Port congestion and inter-island shipping bottlenecks | −1.2% | Manila and Cebu gateways | Short term (≤ 2 years) |
| Rising fuel surcharges squeezing last-mile margins | −0.8% | Nationwide, especially remote islands | Medium term (2-4 years) |
| Fragmented address system in rural barangays | −0.6% | Provincial municipalities | Long term (≥ 4 years) |
| Intensifying price wars among app-based players | −0.4% | Metro Manila and tier-1 cities | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Port Congestion and Inter-Island Shipping Bottlenecks
Manila and Cebu ports routinely operate at 40-50% above designed throughput during peak periods, creating two-day average dwell overruns that ripple into downstream delivery commitments. Limited berthing slots and manual container handling extend vessel turnaround, while weather-driven RORO cancellations disrupt the sailing cadence vital for inventory-light models. Until port automation and berth expansion projects reach completion, carriers must maintain buffer inventory, multi-port contingency routes, and customer communication protocols to protect service levels in the Philippines courier, express, and parcel market[3]“Build Better More Infrastructure Program Brief,” Department of Transportation, dotr.gov.ph.
Rising Fuel Surcharges Pressuring Last-Mile Margins
Volatile fuel costs account for as much as 70% of a remote-island delivery’s expense stack. While dynamic surcharges help offset spikes, price-sensitive consumers cap pass-through flexibility. Limited charging infrastructure curbs electric-motorcycle adoption outside Metro Manila, locking couriers into diesel-based fleets for the medium term. Route-optimization engines that reduce empty miles and encourage cluster deliveries are therefore critical levers to sustain profitability across the Philippines courier, express, and parcel industry[4]"Cargo sector to see smarter warehouses, drones, new alliances." Philippine News Agency, pna.gov.ph.
Segment Analysis
By End User Industry: E-Commerce Leads; Healthcare Rises
E-commerce commanded 42.72% share in 2024 as online marketplaces, direct-to-consumer brands, and social sellers collectively fueled daily shipment spikes. Bundled warehousing, returns management, and omnichannel integration services enhance retention of large platform accounts. Healthcare logistics posts a robust 7.23% CAGR between 2025-2030 as telemedicine, vaccine distribution, and prescription-by-mail programs demand temperature integrity, chain-of-custody compliance, and rapid fulfillment. GDP-certified warehouses, validated packaging, and regulatory-aligned documentation become critical differentiators in the Philippines courier, express, and parcel industry.
Financial-services parcels credit-card statements, legal documents—continue a measured migration to digital channels but still require secure physical handover in certain regulatory workflows. Manufacturing and wholesale shipments incorporate heavier SKUs and scheduled bulk-order patterns. Primary industries including agriculture and mining rely on courier networks for time-sensitive samples, spare parts, and compliance paperwork, underscoring the sector’s broad-based relevance to national economic modernization.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Scale Meets International Momentum
Domestic flow anchored 64.98% of 2024 revenue, reflecting concentrated trade along the Manila-Cebu-Davao triangle where network density lowers per-parcel cost. Operators leverage fixed-route trucking and modular micro-depots to hit sub-48-hour delivery for 70% of intra-Luzon origin-destination pairs. The Philippines courier, express, and parcel market size for domestic services is projected to grow steadily yet face thinning margins as app-based competitors intensify discounting. International parcels, although smaller in absolute volume, register a 7.14% CAGR between 2025-2030, driven by cross-border e-commerce purchases, balikbayan boxes, and export shipments from MSMEs tapping overseas buyers. Premium pricing for customs clearance, airfreight space, and regulatory compliance underpins higher unit economics, making cross-border a profit stabilizer within the wider Philippines courier, express, and parcel market.
Expanding bilateral trade agreements and electronic customs platforms are shaving up to 48 hours off clearance times, narrowing service-quality gaps with regional peers. As Clark and Cebu airports add integrated cargo terminals, north-south diversion reduces Manila hub pressure, enabling faster transit for perishables and high-value electronics. Market leaders now bundle international shipping with localized returns orchestration, capitalizing on the diaspora’s remittance-linked purchases and expanding the Philippines courier, express, and parcel industry’s global connectivity.
By Speed of Delivery: Express Gains Premium Ground
Non-express services commanded 72.74% share in 2024, anchored in price-sensitive inter-island moves where geography and vessel schedules make speed uneconomical. Nevertheless, express deliveries, buoyed by a 7.78% CAGR between 2025-2030, are reshaping metropolitan competition. Same-day fulfillment promises have shifted consumer tolerance thresholds, with 30-minute ETA windows becoming a differentiator for electronics, fashion, and grocery orders. The Philippines courier, express, and parcel market share for express services is expanding as large fleets deploy motorcycle couriers, micro-warehouses, and AI-driven dispatch systems that unlock near-real-time assignment of riders to parcels.
Non-express operators are responding with hybrid offerings economy-plus options that guarantee two-day delivery within Luzon at modest premiums. Volume consolidation, coastal shipping contracts, and mechanized sorters lifting parcels per labor hour help defend margin. Across both tiers, transparent pricing, predictable delivery windows, and real-time parcel visibility remain essential to sustain customer loyalty in the Philippines courier, express, and parcel market.
By Shipment Weight: Light Parcels Shape Network Design
Light parcels under 2 kg represented 67.68% of 2024 traffic, aligning with the high order cadence of electronics accessories, apparel, and cosmetics. Conveyor-friendly dimensions allow high sorter utilization rates that anchor the volume-driven economics of the Philippines courier, express, and parcel market. Medium parcels covering small appliances and home goods represent a steady mid-tier, often requiring additional packaging safeguards but still fitting automated chutes. Heavy parcels over 20 kg show a 5.41% CAGR between 2025-2030 fueled by industry 4.0 procurement shifts, where factories now order machine parts online for quick replacement.
Handling heavier consignments necessitates reinforced vehicles, lift-gate equipment, and specialized insurance, raising capital thresholds and favoring incumbents. Investment in weight-and-dimension scanners allows dynamic tariff calculation, mitigating revenue leakage across the Philippines courier, express, and parcel market. Advancing e-commerce categories like exercise equipment and furniture kits are expected to nudge the weight mix upward, compelling operators to blend volumetric-pricing strategies with customer experience promises.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Roads Rule but Air Gains Altitude
Road corridors accounted for 51.35% of parcel movement in 2024, reflecting Luzon’s contiguous landmass and the historical underinvestment in maritime express. Expanded tollways and bridge links under “Build Better More” improve end-to-end transit predictability; however, frequent congestion and island gaps still limit mainland efficiency. Air cargo, advancing at a 5.85% CAGR between 2025-2030, is increasingly chosen for high-value, time-critical deliveries between major urban nodes and peripheral islands where sea schedules introduce delays. Collaborative charter programs among leading carriers help lock in capacity and stabilize rates during peak seasons.
Maritime RORO lanes remain critical for bulk inter-island transfers, especially for non-urgent parcels. Operators integrating sea legs with dedicated trucking at origin and destination ports shorten dwell by pre-assigning trucks to arriving ferries. Rail remains nascent, confined to localized freight corridors in Luzon, but feasibility studies suggest incremental expansion that could diversify mode mix over the long term within the Philippines courier, express, and parcel market.
By Model: B2C Dominance, C2C Emergence
B2C flows captured 57.13% of 2024 volumes as large marketplaces and omnichannel retailers outsource fulfillment to third-party logistics specialists. Sellers benefit from carrier-managed reverse logistics, cash-on-delivery reconciliation, and real-time inventory visibility. Meanwhile, C2C parcel volumes, growing at 4.15% CAGR between 2025-2030, illustrate the monetization of social media channels where individual sellers transact fashion, collectibles, and specialty foods. Flexible pickup windows, branch-drop options, and mobile-app label printing address the fragmented origin points typical of C2C.
B2B volumes remain vital for industrial supply chains where batch orders and heavier weights demand scheduled consolidation, specialized handling, and value-added warehousing. Leading providers now offer end-to-end B2B platforms purchase-order integration, pallet-level tracking, and vendor-managed inventory services creating adjacent revenue streams that enhance wallet share within the broader Philippines courier, express, and parcel industry.
Geography Analysis
Domestic parcel flow remains the backbone of the Philippines courier, express, and parcel market, with Metro Manila processing nearly 40% of national volumes despite hosting just 13% of the populace. High urban density provides route densification that lowers per-drop cost, yet traffic congestion necessitates motorcycle fleets and micro-hubs for last-mile velocity. Beyond Luzon, Cebu and Davao serve as secondary hubs, alleviating radial dependence on Manila and providing region-tailored fulfillment networks that cut intra-Visayas and intra-Mindanao transit times by up to 24 hours.
Provincial economies are benefiting from government roads, ports, and airport upgrades that form the spine of the “Build Better More” program. Integrated logistics corridors reduce multi-modal handoffs and promote predictable schedules essential for e-commerce service-level agreements. Light manufacturing zones in Calabarzon and Clark generate B2B flows that feed both domestic consumption and export, while tourist-heavy islands like Palawan demand reliable backhaul solutions for hospitality supply chains. Address standardization pilots in Region IV and VI aim to shorten geolocation errors and enhance delivery accuracy, though full national adoption remains a multi-year undertaking.
Internationally, outbound volumes linked to small-business exports and balikbayan care packages grow alongside inbound cross-border e-commerce, underpinning a 7.14% CAGR for the segment. Expanded air-cargo capacities at Clark and Cebu relieve Manila congestion, distributing customs workloads and introducing competitive route pricing. Electronic customs clearance, live tracking, and pre-arrival processing cut cycle times by two days on average, aligning the Philippines courier, express, and parcel market with regional benchmarks for speed and predictability. Bilateral trade agreements favoring simplified rules of origin and reduced documentary requirements are forecast to widen small-parcel trade lanes, solidifying the archipelago’s role as both origin and destination in Asia-Pacific parcel networks.
Competitive Landscape
The sector is beginning to give way to technology-driven moderate consolidation as scale operators outspend smaller rivals on automated sorters, advanced telematics, and end-to-end visibility platforms. Leading incumbents combine nationwide depots with partner networks to penetrate 98% of inhabited islands, offering tiered service portfolios that span economy, express, heavy-freight, and temperature-controlled lanes. Differentiation is shifting from raw network size toward integrated solutions encompassing fulfillment, reverse logistics, and data-rich API connectivity requested by modern merchants.
Mid-tier challengers leverage app-based gig models to undercut incumbents on urban routes, yet sustained cash burn amid price wars raises questions on longevity. Strategic alliances—such as airline-courier cargo block-space deals and retailer-courier co-located dark stores—are emerging to secure capacity and enhance speed. Regulatory compliance, particularly around data privacy, customs automation, and labor standards, is being weaponized by larger carriers as a competitive moat, given the cost of maintaining full adherence across archipelago-wide operations.
White-space opportunities persist in healthcare logistics, cold chain, and B2B less-than-truckload services where specialized handling and certification deter low-capex entrants. Drone delivery and autonomous ground vehicles remain developmental, but early pilots promise disruptive cost curves for remote-island service. Overall, competitive dynamics in the Philippines courier, express, and parcel market are gravitating toward a hybrid model where asset-heavy national networks partner with asset-light local specialists, creating layered ecosystems resilient to geographic and demand volatility.
Philippines Courier, Express, And Parcel (CEP) Industry Leaders
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DHL Group
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J&T Express
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LBC Express Holdings, Inc.
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SM Investments Corporation (including 2GO)
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Ninja Van
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2025: UPS had enhanced its air network, enabling faster deliveries for customers across Asia, Africa, and the Middle East, covering over 35 countries. Customers from major Asia DHL Group committed EUR 2 billion (USD 2.20 billion) to global healthcare logistics by 2030, earmarking EUR 500 million (USD 551.82 million) for Asia-Pacific cold-chain capacity, including GDP-certified hubs that elevate medical delivery standards in the Philippines.
- January 2025: Ninja Van Philippines partnered with Universal Robina Corporation to deploy scan-to-print virtual fulfillment for fast-moving consumer goods, expanding the carrier’s B2B footprint.
- December 2024: Ninja Van rebranded 200+ trucks nationwide under its Ninja Dash, Ninja Fulfillment, and Ninja Restock service lines, signaling a strategic pivot toward integrated logistics offerings.
- July 2024: FedEx doubled the size of its Clark International Airport hub to 34,000 m², raising throughput to 9,000 parcels per hour and strengthening international express lanes.
Philippines 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.
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 |
| 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 |
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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. |
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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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