Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 22.93 Billion |
| Market Size (2030) | USD 26.17 Billion |
| Growth Rate (2025 - 2030) | 2.68% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Russia Road Freight Transport Market Analysis by Mordor Intelligence
The Russia road freight transport market size stands at USD 22.93 billion in 2025 and is projected to reach USD 26.17 billion by 2030, delivering a 2.68% CAGR between 2025-2030. Persistent geopolitical frictions slow headline growth, yet sustained industrial output, the redirection of trade toward Asia, and targeted highway investments keep freight volumes on an upward course. Manufacturing-led demand, fast-rising cross-border traffic with China, and steady e-commerce parcel flows underpin fleet utilization, while driver shortages, volatile diesel prices, and high interest-rate leasing costs continue to squeeze operator margins. Government-mandated digital documentation and the 2025 launch of the National Digital Transport-and-Logistics Platform tighten compliance but enable faster administrative processing. Integrated logistics groups use mergers, IT alliances, and terminal expansion to secure scale advantages, whereas small carriers adjust by focusing on niche regional lanes or subcontracting to platform aggregators.
Key Report Takeaways
- By end user industry, manufacturing captured 34.47% of the Russia road freight transport market share in 2024, and the “Others” category—mainly defense and import-substitution logistics—shows the fastest growth at a 3.28% CAGR between 2025-2030.
- By destination, domestic moves accounted for 64.75% of the Russia road freight transport market size in 2024, whereas international routes are on track for a 3.16% CAGR between 2025-2030.
- By truckload specification, full-truck-load held 83.43% of the revenue share in 2024; less-than-truck-load is expanding at a 3.00% CAGR between 2025-2030.
- By containerization, non-containerized freight dominated 86.63% of the revenue share in 2024, but containerized traffic is rising at a 2.73% CAGR between 2025-2030.
- By distance, long-haul services commanded 74.53% of the revenue share in 2024 and will advance at a 2.81% CAGR between 2025-2030.
- By goods configuration, solid goods remained the biggest revenue source with 72.03% of the revenue share in 2024, while fluid-goods logistics shows a 2.88% CAGR between 2025-2030.
- By temperature control, non-temperature-controlled freight still represents 94.31% of revenue share in 2024, yet temperature-controlled services lead segment growth at a 2.95% CAGR between 2025-2030.
Russia Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising China–Russia cross-border demand | +0.8% | Far-East regions; Moscow distribution hubs | Medium term (2-4 years) |
| Domestic e-commerce fulfillment expansion | +0.6% | Moscow, St. Petersburg, major urban centers | Short term (≤ 2 years) |
| M-12 and North–South corridor upgrades | +0.5% | Central Russia; Volga-Ural corridor | Medium term (2-4 years) |
| Incentives for truck-manufacturing renewal | +0.4% | Nationwide, industrial regions | Long term (≥ 4 years) |
| Sanctions-driven border micro-hub trans-ship | +0.7% | Kazakhstan and Belarus corridors | Short term (≤ 2 years) |
| Digital freight platforms | +0.3% | National logistics hubs | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Rising China–Russia Cross-Border Demand
Two-way road freight between Russia and China climbed sharply in 2024 as bilateral trade hit USD 202.11 billion in the first ten months, boosting truck volumes across Zabaykalsk and Blagoveshchensk crossings[1]VIPU Supply Chain Logistics, “Multimode Transport from China to Russia,” viputrans.com. Congestion persists because daily gate quotas lag fast-growing demand, encouraging carriers with the required permits to charge premium line-haul rates. More balanced eastbound and westbound traffic cuts empty returns, lifting long-haul margins and enticing integrated operators to add dedicated Far-East capacity. From 2025 onward, the M-12 extension toward Tyumen and the rollout of electronic navigation seals are poised to accelerate cross-border clearances, opening fresh capacity for temperature-controlled and high-value shipments.
Domestic E-Commerce Fulfillment Expansion
Urban consumers embraced same-day and next-day delivery in 2024, prompting 3PLs to install automated sorters and micro-fulfillment centers around Moscow and St. Petersburg. Parcel density lets carriers blend B2B and B2C loads, pushing route-optimization algorithms into mainstream dispatch software. Real-time tracking and customer-facing apps lift service visibility, while specialized reefer vans support the booming online grocery and pharmaceutical niches. The trend benefits LTL fleet owners that build hub-and-spoke networks aligned with retail hot spots, even as full-truck-load specialists trial drop-trailer pools to cut dwell times at distribution docks.
M-12 and North–South Corridor Upgrades
Completion of the Kazan–Yekaterinburg segment in June 2025 reduces Moscow-Urals transit by up to three hours, slicing fuel consumption and vehicle wear on Russia’s busiest freight artery[2]ConsultantPlus, Government Resolution No. 1694 (30 Nov 2024), consultant.ru. Expansion toward Tyumen in 2026 extends the efficiency gains deeper into Siberia, allowing manufacturers to reposition inventories faster and cheapening long-haul per-kilometer costs. Parallel investments in the North–South corridor add optionality, giving shippers a rail-road-sea alternative for South Asia trade. Automated customs booths and digital registers complement the asphalt, cutting hold-ups that previously stretched border stops to a full day.
Sanctions-Driven Border Micro-Hub Trans-Ship
Heightened export-control scrutiny refocused logistics flows through specialized trans-shipment yards along Russia’s southern and eastern borders, where throughput doubled to 14 million tons in 2024. Operators with bonded warehousing licences consolidate pallets, perform quick customs checks, and reload cargo onto domestic tractors that comply with cabotage rules. This hub-and-spoke workaround lengthens average haul length but yields lucrative surcharges for regulatory know-how. Concentration remains high—three logistics firms handle roughly 40% of border tonnage—raising systemic vulnerability yet driving investment in redundant capacity and digital documentation to meet the September 2026 electronic filing mandate.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatile diesel prices and fuel taxation | -0.9% | National, acute in long-haul operations | Short term (≤ 2 years) |
| Driver shortage and aging workforce | -0.7% | National, severe in Siberia and Far East | Long term (≥ 4 years) |
| High interest-rate leasing burden | -0.5% | National, concentrated among SME carriers | Medium term (2-4 years) |
| EAEU cabotage liberalization rate pressure | -0.3% | Border regions with Kazakhstan, Belarus | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Volatile Diesel Prices and Fuel Taxation
Russia’s average on-road diesel quotation swung by over 40% during 2024, forcing carriers on the Volga-Urals lane to push tariffs up by 70% in selected months[3]Ministry of Transport of the Russian Federation, “Draft Rules on Truck Freight Carriage,” mot.gov.ru . Smaller fleets lacking fuel-card rebates or hedge programs struggled to price contracts accurately, eroding tender competitiveness. Treasury excise tweaks, export-duty caps, and refinery maintenance cycles added unpredictability, accelerating the adoption of telematics that steer drivers toward low-price truck stops. Large operators responded by securing bulk purchase agreements and retrofitting KAMAZ-54901 LNG tractors to cut per-kilometer energy bills, though LNG infrastructure remains sparse outside Central Russia.
Driver Shortage and Aging Workforce
Average driver age now tops 48 years, and retirements outpace new licence issuances, creating a gap that exceeded 20,000 seats in 2024[4]Trans.ru, “Driver Registry Impact on Transport Services,” trans.ru . Long-haul assignments into Siberia face the steepest recruitment headwinds due to harsh climates and prolonged rotations. Wage offers rose 25–30% year-on-year, yet attrition stays high as veterans exit for less strenuous local delivery jobs. Carriers respond with in-house academies, sign-on bonuses, and double-driver schemes to shorten rest cycles, but the pipeline will likely remain tight until broader vocational-school reforms materialize. Autonomous-truck pilots exist, yet regulatory clarity and harsh-weather sensor reliability defer commercial rollout beyond 2028.
Segment Analysis
By End User Industry: Manufacturing Anchors Freight Volumes
Manufacturing generated 34.47% of the Russia road freight transport market share in 2024, reflecting the sector’s heavy demand for inbound raw materials and outbound finished goods. The segment’s overweight position steadies baseline volumes even when consumer spending cycles wobble. Defense and import-substitution lines, grouped under “Others,” expand the fastest at 3.28% CAGR between 2025-2030 as state programs accelerate domestic production of machinery, electronics, and dual-use components.
Steelmakers and auto assemblers often secure annual full-truck-load contracts to guarantee just-in-time supply, favoring large carriers with dedicated trailer pools. Meanwhile, food brands and pharmaceutical labs latch onto LTL platforms that can mix temperature-controlled and ambient packages on a single route. Overall, the Russia road freight transport market size for manufacturing is expected to widen alongside rising factory-gate output and inventory relocation from sanctioned geographies. Import-substitution clusters in the Volga-Ural belt see the greatest lane density gains, attracting 3PL investments in cross-dock facilities and driver lodges.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Scale, International Margins
Domestic hauls represented 64.75% of the Russia road freight transport market size in 2024 as the country’s vast geography locks in multi-day runs between industrial hubs. Highway modernizations lower transit times, yet distances remain long enough to dissuade modal shifts for many time-sensitive loads. International freight is forecast to grow 3.16% CAGR between 2025-2030 on rising bilateral merchandise trade.
Cross-border specialists capitalize on customs expertise, multilingual dispatchers, and permit management, keeping barriers to entry high. The surge of back-haul opportunities into Russia—fertilizer, timber, and coal—improves asset utilization, while new micro-hubs in Kazakhstan offer indirect routing options to bypass bottlenecks. Domestically oriented carriers remain competitive by adopting e-TIR electronic transit procedures and dynamic route planning that shave idle kilometers across repetitive lanes.
By Truckload Specification: FTL Dominance with Digital LTL Upside
Full-truck-load carried 83.43% of the Russia road freight transport market share in 2024, driven by bulk commodities, container drays, and contract factory runs. LTL, though smaller, will accelerate at a 3.00% CAGR between 2025-2030 because platform operators aggregate fragmented SME orders into high-density city-pair corridors.
FTL’s scale advantaged fleets enjoy simpler paperwork and faster turnarounds, but they increasingly install IoT sensors and predictive-maintenance software to protect slim margins from fuel and tire inflation. LTL networks invest in regional cross-docks and AI-based load-matching engines that shave empty legs by pairing reverse flows, nudging utilization above 85%. Shippers appreciate LTL’s shipment-level visibility and pay-as-you-go pricing, further widening its addressable market.
By Containerization: Bulk Still Rules, Intermodal Gains Momentum
Non-containerized freight made up 86.63% of total volume in 2024, consistent with Russia’s commodity-heavy shipping profile. Nonetheless, containerized cargo is gathering steam at a 2.73% CAGR between 2025-2030 as shippers chase intermodal efficiency and faster trans-Eurasian rail-road connections.
The Russia road freight transport market size for container drays will expand once FESCO’s upgraded Zabaikalsk terminal comes online, lifting Far-East handling capacity. Standardized boxes appeal to electronics, apparel, and processed-food exporters that require gentle handling and rapid mode transfers. Bulk steel coils, LNG, and project cargo stay outside container norms, anchoring conventional flatbed, tanker, and heavy-haul fleets.
By Distance: Long-Haul Scale Economics
Long-haul corridors captured 74.53% of the Russia road freight transport market share in 2024 and are on a 2.81% CAGR trajectory between 2025-2030 as western OEM plant closures shift volumes deeper inland. Dense east-west lanes connecting Moscow, Kazan, Yekaterinburg, and Novosibirsk churn out dependable back-hauls that keep load factors high.
Short-haul and urban last-mile routes benefit from e-commerce but face stiffer competition from rail on 300–700 km runs. To mitigate rising tolls and congestion, carriers deploy double-stack container chassis for rail-road piggyback segments and leverage distance-based fuel-surcharge models to stabilize revenue forecasts.
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By Goods Configuration: Solid Freight Core, Fluid Freight Niche
Solid goods accounted for 72.03% of the Russia road freight transport market size in 2024, spanning construction inputs, finished machines, and consumer staples. Fluid cargo—petroleum, chemicals, edible oils—will outpace at a 2.88% CAGR between 2025-2030 as energy producers redirect flows to non-OECD buyers and chemical plants ramp up capacity for domestic substitution.
Hazmat rules, ADR certifications, and specialized tankers raise entry hurdles but support premium day rates north of RUB 180 (USD 2.02) per kilometer on select Siberian lanes. Solid-goods fleets innovate with modular curtain-side trailers and side-loader cranes, letting them flex between palletized and oversize moves without downtime.
By Temperature Control: Ambient Breadth, Cold-Chain Surge
Non-temperature-controlled shipments still dominate at 94.31% of loads, yet temperature-controlled traffic will lead segment growth at 2.95% CAGR between 2025-2030 as drug makers localize vaccine, biologic, and insulin production. Food retailers also elevate cold-chain standards in metropolitan regions, pushing demand for ATP-certified reefers and telematics-based temperature logging.
Operators investing in dual-evaporator trailers and LNG-powered refrigeration can tap cross-border fruit and seafood imports from Central and East Asia. Meanwhile, fleet owners without insulated boxes partner with cold-store operators via spot-charter apps that balance capacity across produce peaks.
Geography Analysis
Moscow’s Central Federal District anchors the Russia road freight transport market with the densest cluster of warehouse parks, truck depots, and 28,301 logistics nodes mapped in 2025. The region’s role as national distribution pivot ensures steady trunk-haul activity into the Volga-Ural industrial belt, where the M-12 highway trims door-to-door lead times and slashes empty repositioning miles. St. Petersburg’s Baltic port interface gives the Northwestern District a resilient export base despite lower volumes to Europe, while its 16,075 logistics facilities post the lowest closure rate nationwide, showcasing sound capacity alignment.
The Far Eastern Federal District posts the fastest traffic gains as Chinese demand for timber, metals, and LNG drives two-way road haulage through Zabaikalsk and Blagoveshchensk. Bilateral truck counts trebled in 2024 and continue rising thanks to expanded border processing lanes and digital customs queues. Freight rates on the Moscow–Vladivostok lane average RUB 45.3 (USD 0.50) per kilometer in early 2025, reflecting robust fuel, toll, and labor premiums but still outperforming rail transit for time-critical cargo.
Southern lanes via Kazakhstan’s Nur-Zholy and Belarus’s Kozlovichi serve as sanctioned-goods detours, registering 44% year-on-year export volume growth in 2024 per customs tallies. Siberian and Arctic corridors remain the domain of specialized carriers equipped for extreme temperatures, ice-road navigation, and mine-site deliveries. Though thinly populated, these regions confer high-margin contracts linked to energy and mineral projects, offsetting elevated maintenance and insurance costs.
Competitive Landscape
Russia’s trucking arena remains fragmented, with the top five integrated logistics groups controlling a minor share of revenue, while thousands of owner-operators cover spot demand in secondary towns. FESCO’s contemplated merger with TransContainer would fuse port handling, rail flatcar fleets, and long-haul trucking into a unified service stack, setting a precedent for multimodal scale-ups. Similar logic drives FESCO’s September 2025 digital-solutions pact with Softline, embedding real-time data capture, automated invoicing, and predictive analytics across its vehicle pool.
Large carriers standardize on Euro-6 or LNG tractors, improving fuel efficiency and easing compliance with upcoming emission norms, whereas SMEs grapple with double-digit leasing rates that impede fleet renewal. Mandatory e-CMR electronic consignment notes from September 2026 add back-office overhead; scale players amortize the cost over higher volumes, widening the competitiveness gap. Cross-border specialists remain a niche but lucrative segment thanks to bilingual driver pools and customs-broker subsidiaries.
Digital freight platforms such as ATI.SU and Gruzopoisk aggregate fragmented capacity, matching SMEs with shipper spot loads inside minutes. The platforms charge commission fees yet slash empty-run ratios, letting micro-fleets survive despite rising tolls and diesel taxes. Venture-backed newcomers integrate embedded finance and on-demand trailer leasing, giving small carriers liquidity and asset flexibility formerly reserved for the largest incumbents.
Russia Road Freight Transport Industry Leaders
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Delovye Linii Group
-
Globaltruck
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ITECO Corporation
-
MONOPOLY
-
PEK, OOO
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2025: FESCO Transportation Group and IT integrator Softline agreed to co-develop cloud-based dispatch and cargo-tracing tools to automate multimodal workflows.
- April 2025: ITECO began piloting two KAMAZ-54901 LNG tractors supplied by KAMAZ’s transport division, aiming to trim diesel exposure on ADR-regulated hazardous routes.
- August 2024: FESCO allocated EUR 40 million (USD 44 million) to enlarge its Zabaikalsk container terminal, unlocking additional capacity for Russia-China road-rail transfers.
- June 2024: ITECO and Sber Leasing signed a RUB 15 billion (USD 164 million) deal to finance 1,200 new prime movers and semi-trailers, accelerating fleet modernization.
Russia Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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