Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.82 Billion |
| Market Size (2030) | USD 3.99 Billion |
| Growth Rate (2025 - 2030) | 7.16% 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. |
|
Thailand Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Thailand courier express parcel market size is valued at USD 2.82 billion in 2025 and is forecast to reach USD 3.99 billion by 2030, advancing at a 7.16% CAGR between 2025-2030. This healthy trajectory reflects Thailand’s role as a regional logistics hub benefiting from the government’s Thailand 4.0 strategy, continued e-commerce adoption, and large-scale infrastructure upgrades that knit together road, rail, air, and port assets. Rising disposable income strengthens domestic parcel flows, while the high-speed rail link to the Laos–China corridor positions the country for rapid cross-border expansion. Cold-chain investment widens service breadth toward pharmaceuticals and perishables, and 5G connectivity plus AI investments enable route optimization, inventory visibility, and real-time tracking. Platform-owned logistics arms inject additional competition but also stimulate continuous efficiency improvements that keep service quality high and delivery times low.
Key Report Takeaways
- By destination, domestic services led with 64.97% of Thailand courier express parcel market share in 2024, while international shipments are projected to grow at a 7.42% CAGR between 2025-2030.
- By speed of delivery, non-express captured 76.15% of the Thailand courier express parcel market size in 2024; express is set to advance at an 8.25% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) held 57.13% share of the Thailand courier express parcel market size in 2024, whereas consumer-to-consumer (C2C) posts the fastest 4.24% CAGR between 2025 and 2030.
- By shipment weight, light weight parcels accounted for 58.35% of Thailand courier express parcel market size in 2024, while heavy weight parcels are expected to grow the quickest at 6.24% CAGR between 2025-2030.
- By mode of transport, road freight commanded a 52.42% share of the Thailand courier express parcel market in 2024 and remains fundamental to nationwide last-mile coverage, whereas air freight is expected to grow at a 6.08% CAGR between 2025-2030.
- By end user industry, e-commerce generated 35.28% of 2024 revenue; healthcare is expected to expand at a 7.52% CAGR between 2025-2030, the fastest pace among all verticals.
Thailand Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive growth of e-commerce | +2.1% | Global, strongest in Bangkok and urban centers | Medium term (2-4 years) |
| Rising middle-class disposable income | +1.3% | National, concentrated in Bangkok and EEC | Medium term (2-4 years) |
| Government "Thailand 4.0" digital-logistics push | +1.8% | National, EEC priority zones | Long term (≥ 4 years) |
| Logistics-infrastructure upgrades (EEC, highways) | +1.4% | EEC, Bangkok metropolitan area | Long term (≥ 4 years) |
| Cross-border e-commerce via Laos–Thailand high-speed rail | +0.9% | Northern Thailand, Bangkok-Nong Khai corridor | Long term (≥ 4 years) |
| Expansion of cold-chain last-mile networks | +0.7% | Urban centers, healthcare distribution hubs | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Explosive Growth of E-Commerce
Thailand’s online retail sector continues to soar, lifted by digital-payment penetration and mobile-first shopping habits. Major platforms integrate same-day delivery promises, forcing couriers to tighten cutoff times while maintaining network reliability. Continuous discount events create peak-season surges that operators now manage with temporary hubs, AI-based demand forecasting, and crowdsourced driver pools. The resulting parcel density, especially in Bangkok, supports profitable route planning even at competitive price points. Government support for cashless transactions further expands the addressable customer base and lowers failed-delivery rates by shrinking cash-handling time[1]“5G & IoT Success Stories,” Advanced Info Service (AIS), ais.th .
Rising Middle-Class Disposable Income
The Bank of Thailand projects accelerating GDP growth that lifts household consumption power, nudging shoppers toward premium express options for convenience. The Ministry of Finance’s digital-wallet stimulus injects liquidity that translates directly into online purchases. Domestic travel and tourism rebound adds demand from hospitality suppliers moving linen, food, and amenities to hotels statewide. Couriers expand next-day coverage to regional cities such as Chiang Mai and Phuket in response, while upgrading customer-facing apps to offer precise delivery slots. Luxury skincare, electronics, and specialty coffee now travel via temperature-controlled packs, signaling willingness to pay for service upgrades[2]“Laos and Thailand Establish New Agreements,” US-ASEAN Business Council, usasean.org .
Government Thailand 4.0 Digital-Logistics Push
Public spending on data centers, AI skills, and 5G corridors underpins a nationwide logistics technology refresh. Couriers deploy real-time fleet orchestration, automated sorters, and predictive maintenance in newly built hubs near Laem Chabang port and the Eastern Economic Corridor. Microsoft’s announced cloud region supplies scalable compute power for route simulations that cut fuel use and emissions. Thai-language LLM chatbots handle shipment status queries, freeing human agents for exception handling. The Ministry of Digital Economy’s open API standards speed integration between parcel carriers, customs, and e-commerce storefronts, creating an end-to-end digital thread.
Logistics-Infrastructure Upgrades (EEC, Highways)
Massive public–private investment expands dual-lane highways, deep-sea port capacity, and bonded warehouse clusters. WHA Group’s latest 200,000 m² facility near Map Ta Phut embeds smart racking and AGV fleets that hand parcels seamlessly from line-haul trucks to last-mile vans. PTT’s LNG terminal projects improve inbound energy logistics and free container slots on maritime lanes, indirectly supporting parcel flows. Seamless gate automation shortens driver dwell times, raising truck utilization and slashing per-parcel costs. These hard-asset improvements reinforce Thailand’s standing as an ASEAN staging ground for China–Europe trade.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Aggressive price competition eroding margins | -1.2% | National, most intense in Bangkok | Short term (≤ 2 years) |
| Fuel-price volatility | -0.8% | National, higher impact on long-haul routes | Short term (≤ 2 years) |
| Gig-economy courier churn | -0.6% | Urban centers, Bangkok metropolitan area | Medium term (2-4 years) |
| Bangkok traffic congestion bottlenecks | -0.9% | Bangkok and surrounding provinces | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Aggressive Price Competition Eroding Margins
Cut-throat promotional tactics by platform-owned logistics groups compress per-parcel yields for incumbents. Discount vouchers and free-shipping festivals reset consumer expectations downward, forcing carriers to pursue scale and automation to stay profitable. Smaller players without capital for sort-center robotics struggle to match service levels, sparking a wave of strategic alliances. Thailand Post offsets pressure by monetizing value-added warehousing and customs brokerage, while private couriers pilot subscription models that bundle returns handling and parcel insurance[3]"Thailand's Digital Economy: Utilizing AI Strategies and Transformation Initiatives." Telecom Review Asia Pacific, telecomreviewasia.com.
Fuel-Price Volatility
Introduction of a carbon-adjusted excise tax pegged at 200 baht per ton CO₂ narrows cost buffers for diesel-heavy fleets. To hedge, operators accelerate electric-van adoption aided by Board of Investment incentives that slash import duty on EV chassis. PTT installs fast chargers in highway rest stops, enabling intercity electric runs under four hours of total downtime. Early data suggest battery vans cut cost per stop by up to 15% once utilization tops 100 km per shift, cushioning future oil-price spikes[4]"Temu Thailand review: Is it worth the hype?" The Thaiger, thethaiger.com.
Segment Analysis
By End User Industry: E-Commerce Prime, Healthcare Rising
E-commerce consistently tops the volume chart with 35.28% revenue share in 2024, underpinned by social-commerce livestreams and payday flash sales. Temperature-controlled packs and secure ID-check delivery are gaining traction within cosmetics and alcohol verticals. Healthcare parcels generate less volume but higher margins, thanks to stringent regulatory compliance mandating GDP-certified handling. The Thailand courier express parcel industry expects healthcare revenue to grow by a 7.52% CAGR between 2025-2030, helped by aging demographics and national pharmaceutical distribution reforms.
Manufacturing parcels stay relevant as factories adopt just-in-time models that need dependable courier links for low-value high-urgency spares. Financial-services envelopes decline gradually as banks digitize statements, though secure-document couriers still serve legal filings and notarized contracts.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Services Accelerate
International parcels, though contributing a smaller proportion of revenue, are projected to grow faster than domestic flows at a 7.42% CAGR between 2025-2030. That momentum stems from supplier diversification out of China, duty-free thresholds that favor small parcels, and streamlined customs APIs under the ASEAN Single Window. The Thailand courier express parcel market size related to cross-border flows is forecast to surpass USD 1.4 billion by 2030, aided by the Kunming–Bangkok rail corridor that compresses line-haul times. Thailand Post already offers customs pre-payment to shorten last-mile cycles, while private couriers bundle fulfillment and customer-service add-ons for overseas merchants eyeing Thai consumers.
Domestic traffic remains the volume cornerstone with 64.97% revenue share of 2024, anchored by dense metropolitan demand that yields route densities above 150 parcels per driver per day in Bangkok. However, rural expansion programs and drone trial permits in agricultural provinces show carriers are preparing for next-wave growth beyond the capital. Service flexibility—parcel lockers in petrol stations, timed evening delivery, and real-time rescheduling—defines competitive advantage within this segment.
By Speed of Delivery: Express Services Gain Premium
Express deliveries, secure loyalty among SMEs shipping urgent samples, replacement parts, and high-value electronics. AI-augmented forecasting lets couriers load-balance between road and air to protect promised cutoffs. Express revenue is set to climb with a CAGR of 8.25% between 2025-2030, lifting the Thailand courier express parcel market share of this segment by roughly 3 percentage points.
Non-express services nonetheless hold sway among price-sensitive buyers with a 76.15% revenue share in 2024, particularly in C2C and rural e-commerce. Scale advantages for non-express have prompted many carriers to deploy mega-hubs outside Bangkok where land is cheaper, feeding spoke networks that still meet two- to three-day national coverage. Hybrid offerings, such as guaranteed two-day at modest premiums, blur the boundaries and help upsell customers without sticker shock.
By Shipment Weight: Light Parcels Lead, Heavy Freight Builds
Light weight parcels below 5 kg account for 58.35% of revenue share in 2204, reflecting the dominance of fashion, beauty, and small electronics. Automated tilt-tray sorters easily handle this profile, pushing throughput above 25,000 pieces per hour in flagship hubs. The Thailand courier express parcel market size for heavy weight parcels, however, is expanding fastest with a projected CAGR of 6.24% between 2025-2030, as infrastructure projects trigger demand for time-critical industrial supplies. Couriers respond by adding tail-lift vans and flatbeds with GPS geofencing to provide minute-level ETA visibility for construction clients.
Medium-weight parcels form a stabilizing core spanning small appliances, office supplies, and bulk grocery orders. Packaging-optimization programs gaining traction in 2025 shrink volumetric weight by up to 12%, improving load factor and lowering carbon intensity per shipment.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Backbone, Air Upside
Road remains indispensable for door-to-door coverage and flexible pickup windows, supplying 52.42% of total revenue in 2024. Electric-van pilot fleets average 160 km per charge, ideal for urban routes, while diesel trucks still dominate intercity lanes pending rapid-charge infrastructure rollout. Rail mode edges upward once high-speed corridors activate, carving a niche for cross-border parcels that value speed-to-cost balance.
Airfreight parcels grow in tandem with express demand and are projected to grow at CAGR of 6.08% between 2025-2030. Suvarnabhumi’s third runway adds lift capacity that carriers like DHL utilize for intra-Asia lanes. Line-haul aircraft up-gauging and late-night clearance shifts improve cut-off flexibility for merchants, raising air’s share within Thailand courier express parcel market revenue.
By Model: B2C Dominance, C2C Quickening
B2C continues to account for over half of parcels around 57.13% revenue share in 2024 as online marketplaces expand product assortments and embed social-commerce features. Volume rebates from large platforms drive consolidation toward a handful of carriers that can maintain nationwide same-day cutoff times. Merchants lean on integrated dashboards for inventory, payments, and returns, locking in logistics providers with ecosystem stickiness.
C2C growth accelerates with a projected CAGR of 4.24% between 2025-2030 via peer-to-peer resale apps popular among Gen Z users trading fashion and collectibles. Simpler KYC onboarding and flat-rate satchel packs shrink barriers for occasional shippers. B2B parcels, while smaller in count, command a higher yield per item due to specialized handling requirements, particularly for automotive and machinery parts shipped into EEC industrial estates.
Geography Analysis
Bangkok and its adjacent provinces command the lion’s share of parcel activity, bolstered by dense population, concentrated spending power, and sophisticated retail infrastructure. Same-day coverage is now available to 95% of metropolitan addresses, with average drop density exceeding 18 stops per hour. Continuous 5G rollout supports dynamic rerouting to avoid congestion, while micro-fulfillment hubs in shopping centers cut final-leg distances and improve on-time ratios.
Secondary cities such as Chiang Mai, Khon Kaen, and Phuket participate in the growth wave as tourism rebounds and e-commerce penetration deepens. Regional airports equipped for belly-cargo offloading feed parcels into ground networks, shortening service commitments outside the capital. Public–private efforts in the Eastern Economic Corridor add bonded warehouses that service both export manufacturers and import-heavy e-commerce merchants seeking duty-deferral benefits.
Northern provinces stand to gain from the completed Laos–China rail link that slashes transit time to Kunming and offers a competitive alternative to maritime routes through Shenzhen or Shanghai. Conversely, sparsely populated southern border areas face cost headwinds given scattered demand and limited infrastructure; hybrid driver-agent models and drop-off lockers provide an economical compromise. Rural last-mile subsidy programs under discussion could further unlock demand should the government extend universal service obligations beyond postal incumbents.
Competitive Landscape
The market is moderately consolidated; however, it hosts a blend of state-owned, global, and domestic private operators. Thailand Post leverages its legacy network of 5,500 branches and newly installed semi-automated sorters to maintain scale advantages, while forging API links with global marketplaces to secure inbound cross-border traffic. International integrators such as DHL and UPS focus on high-yield express and B2B verticals, relying on proprietary aircraft, customs brokerage expertise, and certified cold-chain solutions to justify premium pricing.
Regional champions J&T Express, Flash, and KEX compete fiercely on price and delivery speed, each investing in mega-hubs with automated tilt-tray sorters exceeding 20,000 parcels per hour. Their asset-light last-mile approach, using crowdsourced riders equipped with AI-driven routing apps, helps flex capacity during peak events like 11.11 and Songkran sales. Technology differentiation intensifies through real-time tracking APIs, sustainability dashboards, and consumer-facing rescheduling portals.
Sustainability commitments influence strategic choices as the carbon-adjusted excise tax takes effect. Operators sign bulk purchase agreements for electric vans and install solar rooftops on distribution centers to shave electricity bills. Data-driven efficiency unlocks carbon reporting for enterprise clients requesting Scope 3 visibility. Partnerships with battery-swap networks promise to cut charging downtime, giving early adopters an operational advantage.
Thailand Courier, Express, And Parcel (CEP) Industry Leaders
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DHL Group
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Flash Express
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J&T Express
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SF Express (KEX-SF)
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Thailand Post
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2024: CJ Logistics showcased its global network by coordinating multi-modal delivery of T-50TH fighter jets to the Royal Thai Air Force, demonstrating complex project-cargo capability.
- September 2024: J&T Express deepened its HSBC partnership to streamline cross-border payments, improving cash flow for SMEs shipping internationally.
- August 2024: KEX completed its move to the shorter “KEX” brand after SF Express became a major shareholder, giving the Thai operator access to the Chinese group’s global routes and automation know-how while it continues to run local services under Thai regulations.
- April 2024: UPS expanded intra-Asia capacity, upgrading Bangkok sort technology and introducing electric vehicle pilots for last-mile routes.
Thailand 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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