Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 4.39 Billion |
| Market Size (2030) | USD 5.30 Billion |
| Growth Rate (2025 - 2030) | 3.83% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Spain Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Spain courier, express, and parcel market size stands at USD 4.39 billion in 2025 and is projected to expand to USD 5.3 billion by 2030, reflecting a 3.83% CAGR between 2025-2030. Continued e-commerce adoption, the Import One-Stop Shop (IOSS) framework, and accelerated fleet electrification underpin this growth while tilting competitive priorities toward sustainability compliance. Domestic deliveries dominate volumes, yet cross-border parcels post faster gains as EU customs harmonization trims clearance times and lifts consumer confidence. Express services enjoy above-average momentum because same-day and next-day windows now shape brand loyalty in Madrid, Barcelona, and Valencia. At the same time, investment in automated sorting, micro-fulfillment centers, and electric vans pushes fixed costs higher, pressuring operators that lack scale. Labor shortages and CO₂-indexed tolls dilute margins, but government incentives worth EUR 400 million (USD 441.45 million) through MOVES III offset part of the capital burden for early adopters.
Key Report Takeaways
- By destination, domestic shipments held 63.96% of the Spain courier, express, and parcel market share in 2024, while international parcels are forecast to grow at a 3.97% CAGR between 2025-2030.
- By speed of delivery, non-express services commanded 74.24% share of the Spain courier, express, and parcel market size in 2024, but express services are advancing at a 4.37% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) flows represented 50.32% of values in 2024; consumer-to-consumer (C2C) shipments record the highest projected CAGR at 3.31% between 2025-2030.
- By shipment weight, lightweight parcels captured 55.18% of Spain courier, express, and parcel market share in 2024, whereas heavyweight parcels are expanding at a 3.43% CAGR between 2025-2030.
- By mode of transport, road transport retained a 61.83% share in 2024; air transport is rising at a 3.26% CAGR between 2025-2030, on the back of new airport hubs.
- By end user industry, manufacturing led with 32.39% of the revenue share in 2024 while e-commerce parcels post a 4.18% CAGR between 2025-2030.
Spain Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Surge in B2C e-commerce volumes | +1.2% | National, concentrated in Madrid, Barcelona, Valencia metropolitan areas | Short term (≤ 2 years) |
| Rising demand for same-day and next-day delivery | +0.8% | Urban centers, expanding to secondary cities | Medium term (2-4 years) |
| EU cross-border harmonization and IOSS adoption | +0.6% | National, with spillover to Portugal and France corridors | Medium term (2-4 years) |
| Growth in sustainable last-mile investments | +0.5% | Major cities with low-emission zones, early gains in Madrid, Barcelona | Long term (≥ 4 years) |
| Urban micro-fulfillment and locker networks expand | +0.4% | Metropolitan areas, concentrated in high-density residential zones | Medium term (2-4 years) |
| Government incentives for fleet electrification | +0.3% | National, with higher uptake in Catalonia and Madrid regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Surge in B2C E-Commerce Volumes
Spain recorded USD 431.3 billion in e-commerce sales during 2024, a figure that continues to rise as digital marketplaces concentrate demand[1]Spain Business Guide, “Spain E-commerce Market,” spainbusinessguide.com. Platforms such as Amazon, Temu, and AliExpress now handle more than 80% of online orders, enabling them to negotiate aggressive parcel rates that narrow operator margins. Amazon’s EUR 8 billion (USD 8.8 billion) local revenue in 2024 underscores the scale of single-platform influence. Concentrated volume funnels parcels through fewer distribution nodes, improving route density yet heightening dependency on dominant marketplaces. Traditional postal players respond by forging partnership models—Correos Express integrated with Temu in March 2025—to secure traffic flows, though such alliances often compress unit economics. Cross-border purchases also climb as EU IOSS rules simplify VAT settlement, further stretching last-mile capacity.
Rising Demand for Same-Day and Next-Day Delivery
Customer surveys show city dwellers rank delivery speed alongside price when selecting an online seller, motivating operators to install micro-fulfillment centers within 15 km of urban cores. Barcelona and Madrid pilots demonstrate 15–20% cycle-time savings when electric vans combine with AI-based routing[2]Correos, “Corporate Information,” correos.es. Correos has deployed hundreds of automated lockers, while private networks like Citibox extend pick-up density that underpins sub-24-hour services. However, profitability outside dense areas remains elusive because lower stop density pushes per-parcel costs above price-elastic thresholds. Operators therefore segment service portfolios—premium express in cities, standard delivery elsewhere—to balance asset utilization and customer expectations.
EU Cross-Border Harmonization and IOSS Adoption
The Import One-Stop Shop (IOSS) rollout removed the EUR 22 (USD 24.3) VAT exemption ceiling and automated tax remittance for parcels valued below EUR 150 (USD 165.5), cutting average customs clearance times by 48 hours at Spanish gateways[3]European Commission, “E-commerce statistics for individuals,” ec.europa.eu. Spanish exports totaled EUR 29.7 billion (USD 32.8 billion) in December 2024, with 41.9% bound for non-EU markets thanks to streamlined procedures. DHL and CTT Expresso forged an Iberian partnership in late 2024 that exploits harmonized rules to run single-window documentation, increasing Portuguese and French throughput capability. Infrastructure upgrades financed by the EU Connecting Europe Facility further integrate Mediterranean and Atlantic corridors, boosting cross-border parcel competitiveness versus road-only routes.
Growth in Sustainable Last-Mile Investments
Low-emission zones now apply in more than 150 Spanish municipalities, each imposing EUR 200 (USD 220.7) fines on non-compliant vehicles. Correos ordered 800 Nuuk electric motorcycles in 2025 and targets 4,000 eco-label vehicles, equal to 25% of its fleet, before year-end. The MOVES III incentive program supplies up to EUR 9,000 (USD 9,932) per light commercial EV, easing capital pain for early movers. Still, depot charging capacity lags fleet demand, and vehicle premiums remain 20–30% above diesel equivalents, slowing mass conversion. Operators with stronger balance sheets seize first-mover advantage by locking in municipal delivery permits and differentiating on sustainability metrics valued by large e-commerce platforms.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Courier labor shortages and rising wage costs | -0.9% | National, acute in Madrid, Barcelona, Valencia metropolitan areas | Short term (≤ 2 years) |
| Price competition squeezing operator margins | -0.6% | National, intensified by marketplace bargaining power | Medium term (2-4 years) |
| Municipal last-mile access fees and congestion zones | -0.4% | Urban centers with low-emission zones, concentrated in major cities | Medium term (2-4 years) |
| CO₂-indexed toll reform inflating road costs | -0.3% | National highway network, affecting long-distance routes | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Courier Labor Shortages and Rising Wage Costs
SEPE data show open driver vacancies exceed 6,500 positions, with seasonal peaks nearly doubling demand[4]SEPE, “Employment Outlook 2025,” sepe.es. Average courier wages climbed 7% in 2024, outpacing inflation and compressing EBITDA margins for mid-size operators. Ongoing legal actions by subcontracted drivers against third-party logistics firms spotlight overtime and misclassification issues, exposing companies to back-pay liabilities. While automated sorters increase hub productivity, the last mile remains labor-intensive, leaving firms little short-term relief. Some operators trial crowd-sourced models, yet regulatory scrutiny of gig classifications in Spain adds compliance risk that tempers large-scale roll-outs.
Price Competition Squeezing Operator Margins
Marketplace dominance allows leading platforms to renegotiate delivery rates every contract cycle, often demanding double-digit price cuts tied to volume guarantees. Operators with fewer than 20 million annual parcels struggle to meet cost targets because fixed expenses—vehicles, depots, and IT—rise as labor and energy prices climb. Cross-border reforms to Universal Postal Union terminal dues removed implicit subsidies on small packets, narrowing traditional postal advantages and pushing rates upward. To preserve cash flow, many carriers pursue 10–20% cost reductions through fleet standardization and fuel hedging, although these actions rarely fully offset pricing pressure.
Segment Analysis
By End User Industry: E-Commerce Surges, Manufacturing Anchors
Manufacturing held 32.39% of the Spain courier, express, and parcel market size in 2024, driven by automotive, machinery, and food equipment sub-sectors that rely on just-in-time part flows. Predictable schedules allow carriers to maximize vehicle fill rates and optimize routing. E-commerce parcels, however, rise at a 4.18% CAGR between 2025-2030, reshaping network geometry toward consumer destinations and reinforcing the need for parcel lockers in apartment lobbies.
Healthcare and financial services contribute niche but valuable traffic requiring temperature control or secure chain-of-custody features. Operators that install real-time tracking and digital proof-of-delivery capture share in these regulated verticals. Diversification across end users smooths demand cycles—peak retail season offsets softer B2B months—supporting stable vehicle utilization year-round.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Momentum Builds on Domestic Base
Domestic deliveries held 63.96% of the Spain courier, express, and parcel market share in 2024, backed by mature e-commerce penetration and well-established regional sort centers. Volume density across the Madrid-Barcelona-Valencia triangle supports overnight ground services that set customer expectations nationwide. Cross-border parcels, though smaller, grow at a 3.97% CAGR between 2025-2030, as IOSS removes VAT friction for orders under EUR 150 (USD 165.5) and exporters leverage simplified documentation.
International networks gain scale from partnerships such as DHL–CTT Expresso, which integrate Iberian capacity and connect to pan-European air lanes. The Spain courier, express, and parcel market size for international flows therefore widens its revenue contribution, even though margin structures differ from domestic contracts. Route economics get an additional lift from Latin American lanes where linguistic affinity lowers customer acquisition costs. Nonetheless, customs complexity outside the EU and currency volatility create risk premiums that smaller carriers struggle to absorb.
By Speed of Delivery: Express Premium Gains Scale
Non-express services accounted for 74.24% of the Spain courier, express, and parcel market share in 2024 due to their price advantage and nationwide reach. Yet consumer surveys show a 42% willingness to pay up to EUR 3 (USD 3.3) extra for next-day arrival when purchasing electronics, apparel, or health products. Express parcels expand at a 4.37% CAGR between 2025-2030 as operators deploy compact urban depots equipped with high-speed sorters and reserve EV fleets for rush windows.
The Spain courier, express, and parcel market size for express lanes grows fastest in metropolitan districts where rider densities exceed 2,000 deliveries per square kilometer per day. Fixed-cost leverage improves as locker pick-up rates rise, reducing failed delivery attempts. Still, express service profitability hinges on dynamic pricing and close coordination with e-commerce checkout options that incentivize off-peak selection, an area where integrators with advanced IT platforms outperform smaller rivals.
By Shipment Weight: Heavy Parcels Edge Up
Light parcels held 55.18% of the Spain courier, express, and parcel market share in 2024 on the strength of fashion and small consumer electronics. However, industrial e-commerce and direct-to-consumer furniture sales push heavy-parcel volumes upward at a 3.43% CAGR between 2025-2030. The Spain courier, express, and parcel market size for heavy items benefits from Amazon’s EUR 300 million (USD 331.09 million) robotics hub in Asturias, which features auto-dimensioning equipment to handle 25 kg boxes.
Handling heavy consignments requires pallet-capable vans and elevated worker safety protocols, lifting operating costs. In response, leading carriers pilot two-person delivery teams and install vehicle lifts to mitigate injury risk. Fee structures incorporate distance-based surcharges to protect margins, an approach widely accepted by consumers purchasing bulky goods online.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Air Adds Capacity to Road Core
Road retained 61.83% share in 2024 owing to Spain’s extensive motorway grid and the flexibility of door-to-door service. Yet air transport grows at 3.26% CAGR between 2025-2030 as DHL’s USD 94 million Barcelona hub unlocks overnight links to Northern Europe and fast-moving consumer electronics channels. The Spain courier, express, and parcel market size for air lanes thus widens, especially for high-value or time-critical products.
Multimodal formats such as GEODIS’s rail-road option between Madrid and Hamburg capture customers targeting CO₂ savings without sacrificing reliability. Rail slot scarcity and terminal dwell times limit share today, but CO₂-indexed tolls could tip future cost equations in favor of combined solutions. Operators now negotiate block-space agreements with airlines to secure peak-season capacity, spreading fixed costs by interlining domestic road legs.
By Model: C2C Adoption Rises Alongside B2C Leadership
B2C flows remained the backbone at 50.32% of total revenues in 2024, reflecting continued retail digitalization. Resale platforms cause a measurable pivot; C2C consignments record a 3.31% CAGR between 2025-2030 thanks to Vinted-style apps, creating fresh volume pools with irregular weight distribution. Spain courier, express, and parcel industry workflows adapt through on-demand label generation and simplified drop-off points.
C2C shipments challenge sorting systems because product categories range from fashion to small home appliances, necessitating flexible conveyor settings and manual exception handling. Operators willing to invest in AI-image recognition for odd-sized parcels reduce mis-sort errors and improve throughput. B2B parcels stay relevant in industrial belts where automated procurement triggers small yet frequent deliveries of spare parts and consumables, contributing steady base volumes.
Geography Analysis
Spain courier, express, and parcel market demand clusters around Madrid, Barcelona, and Valencia, whose combined population exceeds 11 million and generates more than half of national online orders. High density allows same-day delivery coverage within 10 km radii using electric cargo vans, while extensive locker networks shrink missed-delivery rates. Regional hubs such as Zaragoza and Seville feed secondary cities, balancing volume flows across the peninsula. Cross-border corridors leverage the AP-7 and A-2 motorways to France, enabling overnight ground service into Marseille and Lyon.
International parcels expand fastest because IOSS simplifies VAT compliance, and air lanes connect Barcelona-El Prat and Madrid-Barajas to Amazon’s Cologne hub in under 3 hours. Spanish exports posted EUR 29.7 billion (USD 32.77 billion) in December 2024, with non-EU shipments growing 12% and fueling return flows that raise aircraft load factors. Latin America remains strategic, as cultural ties support double-digit cross-border volume increases into Mexico and Colombia, albeit with longer transit times.
Low-emission zones in 150 municipalities create geographic disparities in service models. Operators with at least 25% electric fleets secure unrestricted access permits, giving them pricing advantage in urban cores. Rural areas face higher per-parcel costs due to sparse delivery density, prompting carriers to rely on parcel shops and scheduled drop-off days to maintain coverage without eroding profits. EU Connecting Europe Facility funds—EUR 241 million (USD 265.97 million) allocated to Spain—upgrade rail-road terminals in Algeciras and Bilbao, expanding multimodal options for northern Europe trade lanes.
Competitive Landscape
The Spain courier, express, and parcel market hosts a mix of global integrators, national postal incumbents, and tech-enabled challengers, yet is moderately consolidated. DHL, UPS, and FedEx deploy automated hubs and proprietary IT platforms that optimize route allocation and customer visibility. DHL’s Barcelona air-hub upgrade doubles sort capacity to 6,000 parcels per hour, reinforcing its cross-border dominance. Amazon’s build-to-suit robotics center in Asturias elevates in-house delivery capability, pressuring third-party carriers tied to marketplace volumes.
Correos Express counters by boosting locker density and electrifying routes, leveraging EUR 400 million (USD 441.45 million) MOVES III incentives to offset fleet capital costs. SEUR and MRW focus on SME clients, promoting customizable pickup schedules and leveraging regional depot networks that reach 96% of Spanish households within 48 hours. Technology start-ups like Paack specialize in evening and scheduled delivery, using data-driven capacity planning to achieve 95% on-time performance during 2024 peak season.
Mergers and strategic alliances gain pace as smaller firms confront escalating IT and sustainability investments. FedEx invested in a Bilbao sort center capable of processing 1,500 parcels per hour, adding 27 loading docks that cut truck dwell times. Consolidation allows carriers to amortize AI route-optimization software across larger fleets while negotiating favorable aircraft block-space rates. Market entry barriers consequently rise, concentrating share among operators that pair financial muscle with regulatory compliance agility.
Spain Courier, Express, And Parcel (CEP) Industry Leaders
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Correos Express
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La Poste Group (including SEUR)
-
MRW
-
DHL Group
-
Logista
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- September 2025: DHL Group inaugurated its USD 94 million Barcelona air hub expansion, raising cross-border parcel throughput and reinforcing European network links.
- September 2025: FedEx enhanced logistics capabilities in Spain by opening a new Bilbao facility that doubles prior sort capacity to 1,500 parcels per hour.
- August 2025: Correos contracted Nuuk for 800 electric motorcycles and fleet management covering 1,300 vehicles across 1,000 municipalities.
- July 2024: UPS opened a 4,000 m² sorting and delivery center in Zaragoza, increasing hourly processing capacity to 3,000 parcels.
Spain Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Destination
| Domestic |
| International |
Speed of Delivery
| Express |
| Non-Express |
Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Mode of Transport
| Air |
| Road |
| Others |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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