Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 4.39 Billion |
| Market Size (2026) | USD 4.58 Billion |
| Market Size (2031) | USD 5.48 Billion |
| Growth Rate (2026 - 2031) | 3.67% 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. | |
Spain Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Spain courier, express, and parcel market size was valued at USD 4.39 billion in 2025 and estimated to grow from USD 4.58 billion in 2026 to reach USD 5.48 billion by 2031, at a 3.67% CAGR during the forecast period (2026-2031).
Spain’s double-digit e-commerce penetration, a persistently high 22% return rate, and growing demand for cold-chain services keep parcel volumes on an upward trajectory. Marketplace consolidation boosts shipment density but places downward pressure on contractual rates, making AI-enabled cost-per-kilometer reductions vital for margin protection. Hydrogen-powered truck pilots, electric last-mile fleets, and zero-emission zones accelerate the modal shift toward greener transport solutions. At the same time, cybersecurity threats and ESG-reporting mandates raise compliance costs, nudging operators toward scale or strategic partnerships to remain competitive in the Spain courier, express, and parcel market.
Key Report Takeaways
- By end-user industry, manufacturing led with 32.41% of the Spain Courier, Express, and Parcel (CEP) market share in 2025, while e-commerce parcels are forecast to expand at a 4.00% CAGR through 2031.
- By destination, domestic shipments captured 63.92% share of the Spain Courier, Express, and Parcel (CEP) market size in 2025, whereas international flows are projected to grow the fastest at 3.80% CAGR to 2031.
- By model, the B2C segment held 50.78% share of the Spain courier, express, and parcel market size in 2025 and is set to advance at a 4.77% CAGR between 2026-2031.
- By shipment weight, light-weight parcels accounted for 55.34% of the Spain Courier, Express, and Parcel (CEP) market in 2025 and are poised to rise at 4.03% CAGR through 2031.
- By speed, non-express deliveries retained 74.12% share in 2025; however, express services will register the strongest 4.18% CAGR over 2026-2031.
- By mode, road transport commanded 61.85% of the Spain Courier, Express, and Parcel (CEP) market in 2025, yet air freight will grow at 3.72% CAGR across the forecast horizon.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.
Spain Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Reverse logistics surge from 22% e-commerce return rate | +0.9% | Madrid, Barcelona, Valencia hubs | Medium term (2-4 years) |
| AI-based route optimization and load balancing | +0.7% | Major metropolitan areas, scaling to tier-2 cities | Short term (≤ 2 years) |
| Cross-border grocery and meal-kit expansion | +0.5% | National, coastal regions first | Medium term (2-4 years) |
| EU-funded hydrogen truck pilots on Iberian corridors | +0.4% | Spain-France-Germany routes | Long term (≥ 4 years) |
| Stricter EU GDP guidelines for pharma logistics | +0.6% | Catalonia, Madrid pharma clusters | Medium term (2-4 years) |
| Growth of C2C resale platforms | +0.5% | Urban centers, nationwide uptake | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
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Surge in Reverse Logistics Driven by Spain's 22% E-Commerce Return Rate
Return rates near 22% make Spain one of Europe’s most challenging e-commerce environments, prompting operators to rebuild hub-and-spoke networks for two-way flows while installing inspection and refurbishment lines inside depots. Fashion and footwear account for the bulk of returns and often exceed 30% due to size uncertainty and bracketing purchases. Peer-to-peer marketplaces add another layer of bidirectional traffic as every C2C shipment doubles touchpoints. Operators that invest in dedicated reverse logistics capacity and inventory-visibility platforms increasingly turn a traditional cost center into a source of differentiation. As more brands introduce take-back schemes, reverse flow volumes inside the Spain courier, express, and parcel market are projected to outpace forward shipment growth over the next five years[1]“Good distribution practice,” European Medicines Agency, ema.europa.eu .
AI-Powered Dynamic Route Planning and Load Balancing Cutting Cost per Kilometer
Machine-learning algorithms that ingest traffic, weather, and historical delivery patterns now trim 12-18% off line-haul and last-mile costs. Real-time re-sequencing raises stops per hour by more than 20% on dense Barcelona routes, allowing carriers to protect margins despite platform-driven rate pressure. Capital-intensive robotics hubs such as Amazon’s Asturias facility combine AI sortation with automated guided vehicles to sustain peak-season throughput. Mid-tier providers unable to fund data-science talent increasingly adopt white-label SaaS optimization tools or partner with technology firms, widening the capability gap among competitors in the Spain courier, express, and parcel market[2]“Connecting Europe Facility,” European Commission, ec.europa.eu.
Cross-Border Grocery and Meal-Kit Boom Boosting Temperature-Controlled Parcel Demand
Spanish households are embracing subscription-based meal kits featuring Mediterranean seafood, local produce, and specialty ingredients shipped from neighboring EU states. Each insulated box requires reliable 2-8 °C maintenance, traceable time-temperature indicators, and specialized handover procedures. Rising volumes of perishable food share infrastructure with biologics and vaccines, allowing operators to amortize cold-chain assets across multiple verticals. GDP documentation rules originally written for pharmaceuticals have been adapted for food safety, compelling smaller couriers to subcontract to certified cold-chain providers. As retailers push into ultra-fast grocery delivery, differentiated cold-chain capacity becomes a key selling point in the Spain courier, express, and parcel market.
EU-Funded Hydrogen Truck Pilots Lowering Long-Haul Emission Costs and Toll Exposure
Spain participates in multi-country pilots that deploy 16 hydrogen fuel-cell trucks on Spain-France and Spain-Germany lanes, validating range, refueling, and total-cost economics. Early data suggest 30-40% lower emission-related expenses when factoring in toll rebates and urban access benefits. Limited refueling infrastructure fewer than 10 public stations restricts scale, yet forward-looking carriers secure first-mover advantages by building in-house green-hydrogen alliances. When projected fuel prices drop toward EUR 2-3/kg after 2030, operators with pilot experience will be positioned to roll out hydrogen fleets network-wide, reshaping line-haul economics inside the Spain courier, express, and parcel market.
Restraints Impact Analysis*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Inflation in corrugate, fuel, refrigerants lifting unit costs over 8% | -1.0% | Nationwide | Short term (≤ 2 years) |
| CSRD-mandated ESG auditing escalating compliance spending | -0.5% | Nationwide | Medium term (2-4 years) |
| Surge in cyber-attacks on tracking APIs sparking SLA penalties | -0.4% | Nationwide | Short term (≤ 2 years) |
| Urban locker saturation limiting further density gains | -0.3% | Madrid, Barcelona, Valencia | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Inflation Spikes in Corrugate, Fuel, and Refrigerants Adding More Than 8% to Unit Costs
Corrugate surged 15-20% on pulp shortages, diesel prices swung between EUR 1.20-1.60 per liter, and F-gas phase-downs inflated refrigerant costs, collectively compressing margins in 2025. Carriers hedged fuel and signed fixed-rate packaging contracts, yet high-volume platforms controlling over 80% of orders resisted price adjustments. Smaller providers found limited headroom to absorb spikes, prompting defensive mergers and stronger focus on AI efficiency levers inside the Spain courier, express, and parcel market[3]European Commission, “E-commerce statistics for individuals,” ec.europa.eu.
CSRD-Mandated ESG Auditing Increasing Compliance Overheads for CEP Firms
The Corporate Sustainability Reporting Directive obliges carriers to disclose scope 1-3 emissions, invest in carbon-accounting tools, and obtain external assurance. While large integrators spread costs across global networks, mid-tier Spanish couriers face disproportionate burdens that siphon capital away from fleet upgrades. Non-compliant firms risk contract losses as shippers tighten supplier codes of conduct, deepening polarization in the Spain courier, express, and parcel market[4]“Correos Corporate Information,” Correos, correos.es.
*Our updated forecasts treat driver/restraint impacts as directional, not additive. The revised impact forecasts reflect baseline growth, mix effects, and variable interactions.
Segment Analysis
By End User Industry: Manufacturing Stability Anchors E-Commerce Acceleration
Manufacturing generated 32.41% of the Spain Courier, Express, and Parcel (CEP) market share in 2025, supported by steady automotive and machinery output in Catalonia and Navarre. The Spain courier, express, and parcel market linked to manufacturing remains resilient but posts modest mid-single-digit growth tied to industrial production cycles.
E-commerce parcels, including C2C resale, are forecast to grow 4.00% CAGR through 2031, buoyed by deepening online penetration in fashion, electronics, and homeware baskets. Manufacturers increasingly adopt B2B e-commerce portals for spare parts, driving predictable small-batch shipments, while fashion retailers leverage reverse logistics hubs to cope with returns exceeding 30%. Financial services sustain high-margin document couriers, and stricter GDP rules push healthcare senders toward premium express services. End-user diversification staves off sector-specific volatility and rewards operators able to run multi-vertical networks inside the Spain courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination Type: International Flows Outpace Domestic Maturity
Domestic parcels represented 63.92% of the Spain Courier, Express, and Parcel (CEP) market size in 2025, yet face slowing growth as urban markets reach service saturation. International flows will register 3.80% CAGR to 2031, lifted by EU VAT harmonization and IOSS rules that cut customs friction for sub-EUR 150 shipments.
Cross-border growth clusters along Spain-France-Germany corridors supported by hydrogen truck pilots and rail-road services that eliminate 11,500 annual truck trips. Spanish exporters also tap UPS’s Estafeta network to Latin America, capitalizing on cultural affinity and time-zone alignment. The widening international mix compels carriers to refine customs-brokerage capabilities and invest in multi-currency, multi-language customer portals across the Spain courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Shipment Speed: Express Services Outpace Standard Delivery
Although non-express shipments maintained 74.12% share in 2025, express traffic is projected to rise 4.18% CAGR as shoppers pay premiums for reliability and pharmacies move biologics under time-definite conditions. The Spain courier, express, and parcel market attached to express is further inflated by same-day micro-fulfillment centers in Madrid and Barcelona that promise under-two-hour delivery.
Cost parity improves as AI routing saves fuel and labor, narrowing the price gap between service tiers. Meanwhile, standard services keep core volumes by offering price-sensitive consumers predictable two- or three-day windows, preserving a balanced portfolio for carriers in the Spain courier, express, and parcel market.
By Shipment Weight: Light Parcels Lead Volume and Growth
Light-weight packages of 5 kg or less made up 55.34% of 2025 volumes and will grow 4.03% CAGR through 2031, aligned with fashion and electronics dominance. The Spain courier, express, and parcel market attached to light parcels benefits from locker deliveries and bike couriers that unlock labor and fuel savings.
Medium-weight traffic edges up as merchants consolidate multi-item orders, whereas heavy parcels trail due to palletization alternatives in road freight. Robotics hubs calibrated for sub-5 kg SKUs handle holiday peaks when light-parcel throughput spikes 40-plus percent above baseline, underscoring their pivotal role in the Spain courier, express, and parcel market.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Air Freight Gains on Road Dominance
Road transport controlled 61.85% of the Spain courier, express, and parcel market in 2025 thanks to flexible door-to-door coverage. However, air freight will accelerate 3.72% CAGR on the back of DHL’s USD 94 million Barcelona hub that slashes cut-off times for Asia-Europe parcels.
Regulatory headwinds such as CO₂-indexed tolls and low-emission zones propel carriers toward cleaner line-haul solutions, including hydrotreated vegetable oil (HVO) and hydrogen pilots. Rail-road multimodal services also chip away at pure-truck dominance, offering 70% lower emissions and cost-stable, electrified corridors for the Spain courier, express, and parcel market.
By Model: C2C Adoption Rises Alongside B2C Leadership
B2C parcels held 50.78% of the Spain courier, express, and parcel market in 2025, fueled by marketplace giants whose volumes secure aggressive rate cards. The segment is on track for a 4.77% CAGR as mobile-first shoppers demand one-click checkouts and precise delivery windows.
Consumer-to-consumer volumes climb even faster as circular economy platforms scale, although ticket sizes are lower. Business-to-business traffic remains vital for industrial supply chains but grows more slowly, emphasizing reliability over speed. Marketplace consolidation shifts negotiating power away from carriers, rewarding those able to extract savings from AI routing and automation within the Spain courier, express, and parcel market.
Geography Analysis
Madrid, Barcelona, and Valencia account for more than half of parcel origin and destination counts, underpinning dense last-mile networks, same-day propositions, and saturated locker grids. Low-emission zones across 150 municipalities accelerate the rollout of 800 electric motorcycles contracted by Correos to Nuuk. Rural and island territories remain cost-intensive, prompting carriers to test drone pilots and community-center lockers to bridge the service-level gap.
Cross-border corridors benefit from EUR 241 million (USD 283.49 million) in Connecting Europe Facility funds targeting multimodal node upgrades, especially along Mediterranean and Atlantic axes. Hydrogen truck pilots on Spain-France lanes aim to cut per-kilometer costs and guarantee urban-access privileges. Iberian integration deepens following DHL and CTT Expresso’s joint network, creating seamless Portugal-Spain next-day delivery coverage.
Latin American connectivity strengthens after UPS’s Estafeta acquisition, granting Spanish exporters priority uplift into Mexico, Colombia, and Chile. These geographical linkages inject faster-growing international parcel flows into the Spain courier, express, and parcel market, offsetting domestic maturity.
Competitive Landscape
No single firm controls more than 15% of the Spain courier, express, and parcel market, leaving a fragmented field shaped by technology investments and sustainability credentials. Global integrators outspend regional rivals on robotics, AI routing, and temperature-controlled infrastructure. Amazon’s EUR 300 million (USD 352.89 million) Asturias facility exemplifies vertically integrated fulfillment muscle, while DHL’s Barcelona air hub elevates cross-border capacity.
Domestic incumbents like Correos leverage national coverage and regulatory insight, modernizing fleets with 800 electric bikes and expanding Citypaq lockers. Niche challenger Paack rides gig-economy couriers and hyper-local dark stores to carve out same-day niches in major cities. Blockchain pilots for track-and-trace and zero-trust cybersecurity programs differentiate quality-of-service portfolios, even as mid-tier carriers grapple with CSRD overheads and rising cyber insurance premiums.
Reverse logistics mastery, cold-chain compliance, and C2C adaptability emerge as deciding factors. Operators able to integrate these capabilities at scale stand to capture incremental share within the Spain courier, express, and parcel market, while those lacking capital or digital expertise risk sliding toward subcontractor status in an increasingly demanding ecosystem.
Spain Courier, Express, And Parcel (CEP) Industry Leaders
Correos Express
La Poste Group (including SEUR)
MRW
DHL Group
Logista
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2026: DHL began live hydrogen-truck operations on the Barcelona-Lyon route following successful pilot trials, targeting a 40% cut in well-to-wheel emissions.
- September 2025: DHL Group completed a USD 94 million expansion of its Barcelona air hub, adding 200 new jobs and doubling sortation capacity.
- July 2025: Correos contracted Nuuk for 800 electric motorcycles, with fleet management covering 1,300 vehicles across 1,000 municipalities.
- July 2024: Temu chose Correos Express as its primary last-mile partner, securing nationwide next-day coverage and negotiated locker rates.
Spain Courier, Express, And Parcel (CEP) Market Report Scope
By Destination
| Domestic |
| International |
By Speed of Delivery
| Express |
| Non-Express |
By Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
By Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
By Mode of Transport
| Air |
| Road |
| Others |
By End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| By Destination | Domestic |
| International | |
| By Speed of Delivery | Express |
| Non-Express | |
| By Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| By Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| By Mode of Transport | Air |
| Road | |
| Others | |
| By 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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