Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 3.21 Billion |
| Market Size (2030) | USD 3.76 Billion |
| Growth Rate (2025 - 2030) | 3.21% 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. |
|
Russia Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Russia courier, express, and parcel market size is valued at USD 3.21 billion in 2025 and is forecast to reach USD 3.76 billion by 2030, expanding at a 3.21% CAGR between 2025-2030; this places the Russia courier, express, and parcel market on a steady upward trajectory despite sanctions-driven headwinds. Volume growth is anchored in the rapid geographic spread of online shopping, the densification of marketplace pick-up points, and continuing investment in artificial-intelligence route planning that trims empty miles and raises delivery reliability. Operators also benefit from Belt-and-Road rail and road links that channel consumer goods from China into Siberia and the Far East, counterbalancing lower European flows. Although non-express products remain the dominant service tier, rising urban incomes are fueling premium same-day expectations, triggering fresh capital expenditure in micro-fulfillment hubs. Competitive intensity is high, yet scale players leverage technology and electronic document flows to reduce cost per parcel and protect margins.
Key Report Takeaways
- By destination, domestic shipments commanded a 68.0% of the Russia courier, express, and parcel market share in 2024; international flows are projected to accelerate at a 3.34% CAGR between 2025-2030.
- By speed of delivery, non-express held 77.03% of the Russia courier, express, and parcel market size in 2024, while express is forecast to rise at a 3.74% CAGR between 2025-2030.
- By business model, the business-to-consumer (B2C) segment captured 50.72% of total volumes in 2024; consumer-to-consumer (C2C) is set to advance at a 2.91% CAGR between 2025-2030.
- By shipment weight, light weight parcels secured 75.08% of the revenue share in 2024; medium-weight consignments are expanding at a 2.41% CAGR between 2025-2030.
- By transport mode, road accounted for 46.17% of the revenue share in 2024, while air cargo is expected to climb at a 2.73% CAGR between 2025-2030.
- By end user industry, e-commerce led with a 34.65% revenue share in 2024, whereas healthcare is the fastest riser at a 3.37% CAGR between 2025-2030.
Russia Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom outside Moscow and St. Petersburg | +0.8% | Regional cities and federal districts | Medium term (2-4 years) |
| Belt-and-road freight integration with Asia | +0.4% | Far East, Siberia, border regions | Long term (≥ 4 years) |
| Marketplace pick-up-point saturation (Ozon/Wildberries) | +0.6% | Urban centers, million-plus cities | Short term (≤ 2 years) |
| AI-driven route optimization by leading CEP players | +0.3% | National, with early gains in Moscow, St. Petersburg | Medium term (2-4 years) |
| Micro-fulfillment networks for ≤30-min urban delivery | +0.4% | Moscow, St. Petersburg, regional capitals | Medium term (2-4 years) |
| Drone and autonomous rover pilots for remote Siberia | +0.2% | Siberia, Far East, hard-to-reach settlements | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
E-commerce Boom Outside Moscow and St. Petersburg
E-commerce penetration is rising sharply in secondary cities, reshaping parcel density patterns beyond the two core metros. Sberbank recorded more than 185,000 pick-up points nationwide by March 2025, with downtown density as tight as one outlet every 50 meters in major conurbations. The broadened network lowers last-mile costs, enhances service reliability, and sparks incremental demand from shoppers who historically faced lengthy delivery windows. Provincial tax receipts mirror the trend: Chuvashia doubled e-commerce-related collections in 2024 versus 2021, while Mari El and Smolensk rose 93% and 79% respectively. Marketplace data also show at least one impulse online purchase per month for half of regional consumers, narrowing the behavioral gap with Moscow dwellers. As delivery density thickens, carriers deploy shared-line-haul strategies, allowing smaller batches to ride consolidated routes at lower unit cost. These efficiencies sustain the Russia courier, express, and parcel market even when discretionary spending softens[1]“Freight Turnover January–April 2025,” Ministry of Transport of the Russian Federation, mintrans.gov.ru .
Belt-and-Road Freight Integration with Asia
Chinese and Southeast Asian origin parcels now account for 66% of all international volumes processed by major operators, reflecting parallel-import channels that counterbalance diminished West-bound trade. Russian Railways logged 839 billion tonne-kilometers in January-April 2025, a level maintained despite a dip in aggregate tonnage thanks to distance-heavy Asia routes. CEP players are layering customs-clearance desks, temperature-controlled cross-docks, and bonded terminals across Siberia and the Far East to expedite small parcels that now favor rail-truck intermodal chains. These investments diversify revenue streams and mitigate sanctions-related exposure, reinforcing the long-run outlook for the Russia courier, express, and parcel market[2]“Russia’s Economy in 2025: Major Trends,” Sberbank, sberbank.co.in.
Marketplace Pick-up-Point Saturation
Ozon and Wildberries have converted retail storefronts into dense logistics nodes, creating self-collection networks that drastically cut failed-delivery rates. Urban consumers embrace the model for convenience and lower freight fees, driving sustained parcel flow through physical lockers and staffed counters. The dense grid erects barriers to entry because prime sites, proprietary point-of-sale systems, and trained attendants are already locked in by incumbents. Rising real disposable income—up 7.3% in 2024 and record-low 2.5% unemployment further boost discretionary spending, directly feeding volume growth. With millions of micro-shipments meeting at neighborhood hubs, line-haul trips achieve higher fill factors, supporting profitability improvements across the Russia courier, express, and parcel market.
AI-Driven Route Optimization by Leading CEP Players
Machine-learning engines now recalibrate dispatch plans every few minutes, digesting traffic flows, weather alerts, and parcel urgency. Large operators that feed these algorithms with historical stop-level data cut distance per stop, trim overtime, and reduce delivery windows, lifting customer satisfaction scores. Capital expenditure on fleet telematics and dynamic rerouting dashboards is steep, yet payback is rapid when scaled across thousands of daily routes. Competitors without similar data depth struggle to match cost structures, hastening an already advancing consolidation cycle within the Russia courier, express, and parcel industry. AI platforms also issue early warnings for vehicle maintenance, lowering unplanned downtime during peak seasons.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Customs bottlenecks on cross-border small parcels | -0.4% | Border regions, international gateways | Short term (≤ 2 years) |
| Diesel price shocks from refinery attacks | -0.3% | National, with acute impact on long-haul routes | Short term (≤ 2 years) |
| Skilled-driver shortage in regional hubs | -0.5% | Regional distribution centers, secondary cities | Medium term (2-4 years) |
| Data-leak / cyber-security incidents (e.g. SDEK 2024) | -0.2% | National, technology-dependent operators | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Customs Bottlenecks on Cross-Border Small Parcels
Extra veterinary checks and revised declaration formats introduced in 2025 have lengthened average clearance times at border depots, especially for consumer products that include animal-origin components. Operators must now invest in software updates, brokerage staff, and cold-chain capacity to store parcels pending inspection. These costs crimp margins on low-value shipments, prompting some carriers to impose peak-season surcharges or divert traffic through less congested crossings. The friction undermines the otherwise robust international growth segment of the Russia courier, express, and parcel market, at least until procedural clarity improves and electronic pre-clearance is widely adopted[3]“Customs Modernization Note,” Ministry of Transport of the Russian Federation, mintrans.gov.ru.
Diesel Price Shocks from Refinery Attacks
Refinery disruptions tied to geopolitical tensions have propelled spot diesel quotations to multi-year highs, squeezing long-haul trucking economics. Fuel often represents more than 30% of direct transport cost on 3,000 km Siberian lanes, so even moderate price spikes can render previously profitable routes marginal. Larger networks hedge fuel or deploy high-cube rail containers as a partial offset, but smaller fleets rely on fuel-surcharge clauses that erode customer loyalty. Volatility adds forecasting difficulty, compelling carriers to delay fleet renewals and weigh alternative fuels. In aggregate, higher operating expenditure tempers volume-driven margin gains across the Russia courier, express, and parcel market[4]“Consumer Trends in Russia 2025,” Sberbank, sberbank.co.in.
Segment Analysis
By End User Industry: E-commerce Dominates, Healthcare Surges
E-commerce commanded 34.65% of 2024 revenue, consolidating its role as the top end-user thanks to recurring purchase cycles and integrated fulfillment APIs. Pharmaceuticals and medical devices are set to advance at a 3.37% CAGR between 2025-2030. Drone trials conducted by St. Petersburg University show unmanned craft transporting 2.5 kg payloads to isolated villages with populations totaling more than 550,000 people across 25% of Russian regions. As cold-chain certification becomes mainstream, medical consignments will inject high-margin volume into the Russia courier, express, and parcel market.
Financial services shipments, encompassing secure card delivery and identity documents, stay resilient but shrink as digitization reduces paper flow. Manufacturing spare-parts logistics leans on same-day courier options near industrial clusters, offering niche opportunities for specialists. Overall, the diversification of client sectors buffers cyclicality, ensuring that no single vertical can destabilize the Russia courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Dominance Sustains Volumes
Domestic consignments held a commanding 68.0% share of the Russia courier, express, and parcel market in 2024, ensuring stable baseline revenues even when imports ebb. This pattern reflects shoppers’ trust in local marketplaces, improving road infrastructure, and competitive pricing that favors internal routes. International flows, although only 32.0% by volume, are rising at a 3.34% CAGR between 2025-2030, largely on the back of consumer electronics sourced from Chinese sellers. The Russia courier, express, and parcel market size for international parcels is projected to reach USD 1.20 billion by 2030, but customs delays and new veterinary rules weigh on service quality. Carriers that master cross-border brokerage and offer transparent landed-cost calculators will capture the fastest gains, turning regulatory literacy into a revenue lever.
Service differentiation is becoming apparent as some operators bundle duty pre-payment and instant tracking, while others retain low-touch economy products targeted at price-sensitive buyers. Electronic transport waybills, mandatory nationwide from September 2026, are already yielding efficiency benefits for domestic legs; Delovye Linii processed 350,000 digital documents by December 2024 a leading indicator of scale synergies to come. As digital adoption widens, carriers can triage parcels, reroute dynamically, and bill overnight—features that streamline B2C relations and fortify the domestic backbone of the Russia courier, express, and parcel market.
By Speed of Delivery: Non-Express Mass Meets Express Momentum
Non-express products captured 77.03% of the Russia courier, express, and parcel market share in 2024, underlining the weight of price-conscious households who readily accept two- to five-day lead times when collection points are nearby. That said, express traffic is forecast to post a 3.74% CAGR between 2025-2030, buoyed by rising urban affluence and same-day guarantees from top platforms. The Russia courier, express, and parcel market size attributable to express services could top USD 930 million by 2030, unlocking premium yield per stop. Micro-fulfillment centers placed inside city limits shrink last-mile distance and support profitable 90-minute promises, but outside the metros density remains too thin for comparable economics.
Operators segment fleets accordingly: temperature-controlled vans and small electric cars tackle urban hot-zones, while high-cube trucks shuttle deferred parcels between hubs. Customers benefit from differentiated fees, selecting speed tiers at checkout. As AI-powered planning further compresses route slack, express margins should widen, gradually nudging the overall Russia courier, express, and parcel market toward a more balanced speed mix.
By Shipment Weight: Light Parcels Reign, Medium in Ascent
Light parcels weighing up to 5 kg claimed 75.08% of revenue in 2024 and form the cornerstone of marketplace operations that specialize in apparel, accessories, and low-value electronics. This dominance ensures high sort-center velocity, enabling nightly turnarounds and early-morning dispatch. Nevertheless, medium-weight freight is set to rise at a 2.41% CAGR between 2025-2030 as consumers grow confident purchasing flat-pack furniture, small appliances, and home gym equipment online. That trend uplifts average revenue per shipment and widens the service portfolio for the Russia courier, express, and parcel market.
Handling heavier units requires reinforced vans, tail-lift trucks, and two-person crews, driving up labor costs. Forward-thinking carriers therefore integrate slot-based delivery calendars and value-added assembly options, increasing wallet share per order. Meanwhile, the proportion of heavy freight above 30 kg is static, confined to industrial spares and high-value machine parts that move under contract with specialized haulers. As user interfaces automatically suggest premium care for medium-weight purchases, adoption should continue, underpinning monetization strategies within the Russia courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Rules, Air Accelerates
Road remained the backbone with a 46.17% share in 2024, favored for its point-to-point flexibility and steadily improving highway corridors connecting Western Russia to Siberian distribution nodes. Rail’s share dipped as bulk cargo volumes softened, though intermodal wagon-truck solutions remain crucial on 5,000 km East-West lanes. Airfreight is forecast to post a 2.73% CAGR between 2025-2030, reflecting higher demand for time-critical documents, premium electronics, and medical supplies. Express integrators use night-air networks from Vnukovo and Tolmachevo hubs to knit far-flung regions into 24-hour delivery windows, reinforcing the premium end of the Russia courier, express, and parcel market.
Fuel price volatility complicates road-based budgeting, prompting carriers to co-load parcels for multiple customers in a single run. Electric vans are on trial in short-haul loops where charging infrastructure allows, but wide-scale adoption hinges on battery weight reductions. As state road concessions develop additional toll expressways, average over-the-road speed improves, mitigating the distance penalty versus air and sustaining road’s dominance inside the Russia courier, express, and parcel market.
By Business Model: B2C Leads, C2C Gains
B2C generated 50.72% of revenue share in 2024, reflecting marketplace clout, retail digitalization, and consumer comfort with doorstep alternatives such as staffed lockers. C2C shipments, though still below one-fifth of total flow, are advancing at a 2.91% CAGR between 2025-2030 as peer-to-peer resale apps normalize the sale of fashion, electronics, and collectibles. The Russia courier, express, and parcel market size attributable to C2C traffic nears USD 420 million and offers carriers diversified yield streams because the sender and recipient both pay ancillary fees such as packaging or pick-up. B2B, by contrast, grows modestly as manufacturers optimize in-house logistics.
C2C parcels often arrive in inconsistent packaging, inflating damage risk. Consequently, carriers market add-on services, including protective boxes and in-app dimension calculators, to reduce claims. Superior handling of these nuanced retail flows distinguishes operators willing to allocate dedicated counters at pick-up points, install on-site scale cameras, and offer instant digital insurance. Such services encourage platform exclusivity, creating stickiness and bolstering total revenue captured within the Russia courier, express, and parcel market.
Geography Analysis
Moscow and St. Petersburg account for a disproportionate share of parcel generation due to affluent demographics, robust digital infrastructure, and dense pick-up-point grids. However, regional cities from Kazan to Krasnoyarsk now replicate metropolitan buying patterns within 12-18 months, propelled by local warehouse openings that improve product availability. The Amur region led growth with a 310% surge in federal tax receipts linked to e-commerce between 2021-2024, while Zabaykalsky Krai posted 79% gains, signaling rising demand in the Far East hinterland. Such gains translate directly into new last-mile routes, underpinning revenue resilience across the Russia courier, express, and parcel market.
Siberia presents logistical complexity: sparse population clusters sit hundreds of kilometers apart, and winter conditions curtail road accessibility. Carriers partition territory into micro-hubs linked by scheduled truck convoys and, increasingly, by air charter during freeze months when river barges lie idle. Far Eastern districts benefit from Belt-and-Road railheads where Chinese parcels enter Russia; customs streamlining at these nodes can shave 24 hours off transit, making them lynchpins of the Russia courier, express, and parcel market’s international segment.
Border crossings into Belarus, Kazakhstan, and the Baltic region cater to lower-value consumables and are governed by evolving electronic declaration norms. Compliance mastery acts as a competitive moat because misfiled data trigger fines and re-export mandates. The Ministry of Transport’s freight rebalancing initiative, launched in 2025, seeks to funnel more cargo to under-utilized seaports to ease rail congestion, indirectly boosting cross-dock capacity that CEP firms can leverage. By 2030, inland city volumes are expected to reach parity with the two current megahubs, redefining growth vectors for the Russia courier, express, and parcel market.
Competitive Landscape
The market is moderately consolidated, yet the competition features a nuanced blend of legacy incumbents, technology disruptors, and captive marketplace fleets. Russian Post retains an unparalleled network reach but faces margin strain from universal-service obligations. SDEK, Delovye Linii, and Boxberry carve mid-market positions, winning over SMEs with API-ready integrations. Yandex adds pressure by scaling autonomous rovers capable of all-weather suburban runs, illustrating how platform ecosystems are encroaching on traditional courier turf. The Russia courier, express, and parcel industry is moving toward oligopolistic contours as electronic document flow rules and cybersecurity mandates raise fixed-cost thresholds.
Strategic partnerships blossom: Russian Post codeshares inter-terminal capacity with Delovye Linii, while Boxberry aligns with pharmaceutical distributors to tap cold-chain volume. Merger talk among regional family-owned fleets accelerates, driven by diesel price uncertainty and driver shortages that inflate wage bills by 42% year-on-year. Marketplace operators hedge risk by building in-house fleets for high-density lanes yet still outsource lower-density zones to third-party couriers, sustaining revenue diversity in the Russia courier, express, and parcel market.
Technology adoption is the chief competitive lever. Players deploying predictive maintenance and AI-guided sorting report 5–8 percentage-point gains in on-time performance. Smaller operators, lacking capital for such upgrades, hop onto shared tech platforms, sacrificing data ownership for compliance assurance. With mandatory electronic waybills looming, analysts forecast a further shakeout by 2027, cementing an environment where scale equals survival across the Russia courier, express, and parcel market.
Russia Courier, Express, And Parcel (CEP) Industry Leaders
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Delovye Linii Group
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Russian Post
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SDEK-Global LLC
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Yandex
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Pony Express
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2024: Delovye Linii Group expanded 3PL capabilities, registering 30% year-over-year growth in integrated warehousing, fulfillment, and last-mile services.
- December 2024: Delovye Linii issued 350,000 electronic transport waybills and plans to reach 1 million per month ahead of the September 2026 mandate.
- November 2024: Yandex broadened its autonomous rover pilot beyond Moscow, introducing AI navigation suited for snow and ice.
- October 2024: Boxberry launched cross-border B2B solutions aimed at importers from China and Southeast Asia.
Russia 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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