Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 21.63 Billion |
| Market Size (2030) | USD 28.91 Billion |
| Growth Rate (2025 - 2030) | 5.97% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Thailand Road Freight Transport Market Analysis by Mordor Intelligence
The Thailand road freight transport market size is estimated at USD 21.63 billion in 2025, and is expected to reach USD 28.91 billion by 2030, at a CAGR of 5.97% during the forecast period (2025-2030). This steady climb reflects Thailand’s policy-backed ambition to serve as a regional logistics hub and the ongoing build-out of infrastructure in the Eastern Economic Corridor. Rising wholesale and retail trade volumes, an e-commerce boom, and cross-border trade facilitation are expanding shipment flows despite persistent cost pressures from diesel prices and labor shortages. The Thailand road freight transport market continues to evolve as intermodal links improve, because port upgrades and railway corridors shorten transit times and diversify routing options. International logistics providers are scaling up in Thailand to capture higher-margin corridors, while domestic carriers leverage local relationships and dense pickup-and-delivery networks to defend market share.
Key Report Takeaways
- By end user industry, wholesale and retail trade held 37.11% of the Thailand road freight transport market share in 2024, and the segment is advancing at a 6.87% CAGR between 2025-2030.
- By destination, domestic freight accounted for 66.67% of the Thailand road freight transport market size in 2024, while international freight is forecast to grow at a 7.11% CAGR between 2025-2030.
- By truckload specification, full-truck-load operations commanded 82.38% of total value in 2024; less than-truck-load is the fastest-growing sub-segment at 6.70% CAGR between 2025-2030.
- By containerization, non-containerized freight represented 84.34% of total value in 2024, although containerized volumes are expanding at a 6.06% CAGR between 2025-2030.
- By distance, long-haul routes generated 73.49% of total value in 2024; the sub-segment is projected to rise at a 6.28% CAGR between 2025-2030.
- By goods configuration, solid goods contributed 61.22% of total value in 2024, whereas fluid goods are growing at 6.27% CAGR between 2025-2030.
- By temperature control, non-temperature controlled cargo represented 94.60% of total value in 2024; temperature controlled freight is growing at 6.59% CAGR between 2025-2030.
Thailand Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce boom and retail-trade expansion | +1.2% | National, concentrated in Bangkok and EEC | Short term (≤ 2 years) |
| Infrastructure mega-projects (motorways, land-bridge) | +0.9% | EEC corridor, Eastern provinces | Medium term (2-4 years) |
| Automotive production and export momentum | +0.7% | Rayong, Chonburi | Medium term (2-4 years) |
| China–Laos–Thailand R3A corridor spurring refrigerated export trucking | +0.6% | Northern provinces, cross-border routes | Long term (≥ 4 years) |
| 2025 border e-Customs single-window slashing cross-border dwell time | +0.4% | Border provinces, int’l trade routes | Short term (≤ 2 years) |
| Domestic lithium output for EV battery supply chain | +0.3% | Mining regions, EEC battery plants | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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E-Commerce Boom and Retail-Trade Expansion
Wholesale and retail trade generated 37.11% of revenue in 2024, and the segment’s 6.87% CAGR (2025-2030) underscores how digital retail is remaking national freight flows. Online platforms incubate smaller, more frequent orders that favor road-based networks over rail. Technology-enabled operators such as CJ Logistics rely on automated warehouses and real-time tracking to guarantee near-perfect delivery windows, a standard that is pressuring legacy trucking firms to modernize. Tight delivery schedules, rising returns volumes, and complex SKU mixes incentivize integrated last-mile solutions and collaborative urban hubs. Logistics providers that balance long-haul trunking with high-density urban routing are winning new contracts as retailers prioritize end-to-end visibility and time-definite performance. As disposable incomes rise, Thailand road freight transport market participants that invest in data-driven route planning and fleet telematics are positioned to capture incremental share in this fast-moving segment[1] “Thailand's Eastern Economic Corridor promised a hi-tech utopia. Will it deliver?,” South China Morning Post, scmp.com.
Infrastructure Mega-Projects (Motorways, Land-Bridge)
The Eastern Economic Corridor is ground zero for multibillion-dollar projects designed to remove bottlenecks and cut logistics costs. Laem Chabang Port Phase 3 will raise container capacity from 11 million to 18 million TEUs by 2026, while policymakers aim to lift the rail share of port-connected cargo from 7% to 30%. Complementary motorway extensions linking U-Tapao International Airport to the EEC reflect Asian Development Bank financing that supports climate-resilient design and lowers greenhouse gas intensity. Combined, the schemes target a reduction in Thailand’s logistics cost-to-GDP ratio from 14% to 12% and promise direct savings of USD 7.1 billion. Freight operators able to secure intermodal equipment and terminal slots will achieve faster turns and lower dead-haul mileage. The Thailand road freight transport market is expected to enjoy greater absolute volumes even as relative modal share adjusts in favor of rail for port-centric hauls[2]“Thailand's Laem Chabang Port Phase 3 Progresses with Infrastructure Development,” Thailand Government Public Relations Department, thailand.prd.go.th.
Automotive Production and Export Momentum
Thailand remains Southeast Asia’s largest vehicle producer, and finished-vehicle exports continue to underpin consistent trucking demand along Rayong-Chonburi corridors. Auto supply chains generate inbound component flows and outbound finished goods, reinforcing network density that boosts asset utilization. The planned 400,000-ton per-year U.S. ethane imports by GC from 2029 illustrate how chemical and petrochemical inputs piggyback on existing infrastructure to stimulate new road cargo movements. Component JIT requirements sustain demand for dedicated full-truck-load lanes with tight delivery windows. As next-generation EVs roll out, battery raw materials, hazardous liquid chemicals, and high-value electronic modules will further diversify freight mixes. The Thailand road freight transport market benefits from the sector’s resilience, because vehicle exports remain a national economic pillar even when external shocks disrupt other industries[3]“Climate-Resilient Connectivity for the Eastern Economic Corridor Project,” Asian Development Bank, adb.org.
China-Laos-Thailand R3A Corridor Spurring Refrigerated Export Trucking
The operational China-Laos-Thailand railway has shortened the route between Bangkok and Kunming, accelerating overland trade and stimulating growth in temperature-controlled trucking. Thai exporters of fruit, seafood, and processed foods now have a competitive alternative to maritime lanes. Transit-time gains improve shelf life and allow penetration into inland Chinese cities that were previously uneconomical by sea. Carriers investing in refrigerated fleet capacity and border-crossing compliance capture higher yields from cold chain loads that carry penalties for temperature excursions. This new axis expands geographic reach for Thai agribusiness while adding defensible niches within the Thailand road freight transport market for specialized service providers.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High diesel prices and subsidy rollback | -0.8% | Nationwide, intense on long-haul lanes | Short term (≤ 2 years) |
| Driver shortage and wage inflation | -0.6% | Bangkok, EEC | Medium term (2-4 years) |
| Strict axle-load enforcement | -0.4% | Major highways, checkpoints | Short term (≤ 2 years) |
| Sparse LNG refuelling network for alt-fuel trucks | -0.2% | Pilot lanes, gradual roll-out | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Diesel Prices and Subsidy Rollback
At USD 0.98 per liter, diesel accounts for up to 40% of trip costs on long-haul runs. Government subsidy rollbacks squeeze margins and compel carriers to pass fuel surcharges to shippers or absorb profit erosion. Larger fleets wield purchasing power to negotiate wholesale discounts and reinvest in efficient Euro 6 tractors, whereas small operators often rely on older equipment with higher fuel burn. Intensifying price volatility accelerates adoption of telematics that coach drivers toward fuel-saving behaviors. Scaling alternative fuel fleets remains challenging because Thailand’s LNG and hydrogen dispensing infrastructure is nascent. Elevated fuel costs thus amplify scale advantages inside the Thailand road freight transport market and accelerate consolidation among operators able to hedge energy risk[4]“สมาพันธ์โลจิสติกส์ไทย,” Thai Federation on Logistics, thailog.org.
Driver Shortage and Wage Inflation
Thailand’s freight sector faces a chronic deficit of qualified drivers, particularly in Bangkok and the EEC where construction and public transit campaigns compete for labor. Turnover raises training costs and reduces fleet productivity as tractors sit idle during recruitment cycles. Wage inflation erodes profitability just as carriers confront higher fuel bills. Industry groups are lobbying for streamlined licensing and apprenticeship programs to widen the talent funnel. Companies investing in retention bonuses, career progression plans, and wellness initiatives report lower attrition. Nevertheless, the labor gap restrains growth and reinforces the appeal of autonomous driver-assist technologies that improve safety and reduce fatigue. The Thailand road freight transport market will see widening performance dispersion between operators that address workforce issues and those that do not.
Segment Analysis
By End User Industry: Wholesale and Retail Trade Stays on Top
Wholesale and retail trade contributed the largest shipment value in 2024 at 37.11%, and the segment is on track for a 6.87% CAGR between 2025-2030. Rising online penetration, omnichannel store formats, and rapid-replenishment models expand urban and peri-urban delivery runs, solidifying the Thailand road freight transport market as the preferred mode for same-day movement. Inbound stock flows from seaports and free-trade zones feed metropolitan consolidation centers before radiating to convenience stores and e-grocery dark warehouses.
Manufacturing forms the second-largest block, driven by automotive, electronics, and food processing clusters in the Eastern Seaboard. Predictable, high-volume component loops support dedicated contract carriage that insulates carriers from spot-market volatility. Agriculture, fishing, and forestry inject seasonal peaks that stress capacity, most visibly during fruit harvests when refrigerated trailers become scarce. Construction demand tracks public infrastructure outlays and private real estate cycles, leading to lumpy volumes. Oil, gas, mining, and quarrying loads are highly specialized, requiring tankers and heavy-haul equipment with strict compliance. Emerging cargo such as renewable energy components introduces project cargo complexity. Collectively, these distinct demand patterns sustain a broad service spectrum within the Thailand road freight transport market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Freight Accelerates
Domestic moves retained 66.67% value in 2024 because Thailand’s consumer base and inter-provincial trade remain sizeable. However, international freight edges ahead in growth at 7.11% CAGR between 2025-2030, thanks to e-Customs single-window rollouts that shrink border dwell times. The China-Laos-Thailand route signals a strategic shift that allows shippers to bypass port congestion and diversify risk away from ocean freight.
Cross-border operators differentiate through multilingual paperwork, cargo insurance that meets multiple regulators, and GPS units configured for corridor telematics. They also endure stricter documentation and higher security bonding costs. Domestic-only fleets, while enjoying simpler compliance, face mounting competition from rail for certain long-haul legs. The Thailand road freight transport market continues to embrace bilateral logistics accords that harmonize axle limits and transit permits, supporting the international lane build-out.
By Truckload Specification: LTL Finds Its Footing
Full-truck-load lanes generated 82.38% of value in 2024 as auto parts, electronics, and bulk commodities move in full container or pallet units. Large shippers lock in annual contracts that guarantee equipment availability and pricing visibility. The Thailand road freight transport market nevertheless registers robust 6.70% CAGR between 2025-2030, in less than-truck-load as parcelized commerce increases.
LTL success hinges on hub-and-spoke sortation nodes, barcode tracking, and algorithmic route planning that builds stop density. Operators invest in cross-docks near Bangkok and Chiang Mai to shorten stem mileage. Pallet pooling, consolidated invoicing, and dynamic rerouting give LTL carriers an attractive value proposition for SMEs that cannot fill trailers. Freight managers prize visibility and service reliability over pure rate, encouraging innovation among both domestic and multinational providers.
By Containerization: Boxes Gain Traction
Non-containerized loads comprised 84.34% of revenues in 2024, reflecting Thailand’s agro-industrial heritage where bagged rice, sugar, and cement dominate lanes. Still, containerized movements clock in at a 6.06% CAGR between 2025-2030, fueled by manufactured exports bound for final assembly hubs across ASEAN, China, and Europe. Planned capacity at Laem Chabang will lift throughput to 18 million TEUs, raising box availability for hinterland trucking.
Standardized containers simplify transshipment between truck, rail, and feeder vessels. Shippers gain cargo security and cargo-based financing options because sealed boxes mitigate pilferage risk. The Thailand road freight transport market is responding with skeletal trailers, twist-lock chassis, and driver protocols tailored for port security zones. Non-containerized freight will persist for bulk rice, liquid sugar, and steel but will face competition where commodities can tolerate unitization.
By Distance: Long-Haul Remains the Workhorse
Long-haul freight secured 73.49% of total value in 2024 and is growing at 6.28% CAGR between 2025-2030, as national distribution channels stretch from Bangkok to Chiang Mai, Phuket, and border crossings. Infrastructure upgrades slash door-to-door transit times, boosting asset turns and allowing one-driver loops within legal driving hours. Short-haul distribution retains importance for urban replenishment but faces congestion and emission zone restrictions that crimp productivity.
Fleet managers analyze fuel burn versus payload trade-offs to optimize tractor-trailer selection. Larger sleeper tractors with 450-hp engines dominate long routes, whereas rigid trucks cover the dense Bangkok urban grid. The Thailand road freight transport market sees technology such as adaptive cruise control and predictive maintenance reducing downtime on high-mileage corridors. Autonomous platooning pilots are under evaluation, although commercial deployment depends on regulatory clarity and V2X infrastructure.
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By Goods Configuration: Solid Goods Prevail, Fluids Climb
Solid goods, mainly finished consumer products, auto parts, and bagged agricultural outputs, accounted for 61.22% value in 2024. The sub-segment enjoys economies of scale from palletization and containerization. Fluid goods such as petroleum, liquid chemicals, and edible oils are on a 6.27% CAGR between 2025-2030, trajectory as petrochemical expansion in the EEC raises tank-transport lane density.
Specialized tankers with insulated barrels and vapor recovery systems command higher freight rates due to capital intensity and compliance costs. Safety regulations restrict driving hours for hazardous cargo, increasing complexity. Carriers that maintain chemical ISO-tank depots and driver certification programs stand to gain wallet share. These factors deepen service specialization within the Thailand road freight transport market and drive joint ventures between local fleet owners and multinational chemical shippers.
By Temperature Control: Cold Chain Growth Ahead
Non-temperature-controlled consignments represented 94.60% value in 2024, yet temperature-controlled freight is expanding at 6.59% CAGR between 2025-2030, amid dietary shifts toward perishable convenience foods and vaccine distribution mandates. E-grocery platforms promise same-day delivery of fresh produce, spawning micro-fulfillment hubs with cold rooms within Bangkok’s ring roads.
Cross-border fruit exports leverage the R3A corridor, shaving days off sea transits to Yunnan and Sichuan. Refrigerated trailers equipped with IoT temperature probes feed live data to shippers, minimizing spoilage claims. High capital outlays and technical skills erect barriers for new entrants. This niche, though smaller, is critical in prestige and profitability. Consequently, the Thailand road freight transport market will observe intensified investment in multi-compartment reefers and solar-assisted chilling units.
Geography Analysis
Bangkok, Samut Prakan, and Pathum Thani dominate origin-destination pairs because the capital city functions as the economic nucleus and first-mile port of entry. The Thailand road freight transport market posts the highest equipment utilization on north-south routes that funnel consumer goods into upcountry provinces and bring agricultural produce back to Bangkok wholesale markets.
The Eastern Economic Corridor provinces Chonburi, Rayong, and Chachoengsao collectively benefit from USD 3.2 billion in port dredging, berth expansion, and motorway construction that alleviate historical chokepoints. DSV-DB Schenker and other global forwarders anchor regional distribution centers near Laem Chabang to serve ASEAN customers within a one-day transit radius. Elevated industrial land uptake sustains steady trucking call-offs for parts and finished vehicles bound for deep-sea terminals.
Northern Thailand is re-energized by the operational China-Laos-Thailand railway, which channels cargo through Chiang Rai and Nong Khai. Agricultural exporters exploit improved turnarounds to Kunming wholesale markets, requiring refrigerated backhauls that were previously unviable. Southern routes handle rubber, palm oil, and seafood; they contend with monsoon disruptions that necessitate network redundancies. Western corridors toward the Dawei deep-sea port in Myanmar remain underdeveloped but hold long-term promise once cross-border highway standards align.
Competitive Landscape
Competition remains fragmented as countless provincially licensed fleets coexist with multinational integrators. Structural barriers such as cabotage restrictions and local equity caps limit swift foreign dominance, yet technology and global contract logistics expertise provide leverage. The May 2025 completion of the DSV-DB Schenker merger catapulted the combined entity into pole position for international freight integration, joining European and Asian networks under one playbook.
CJ Logistics illustrates how automation, hydrogen cargo trucks, and proprietary packaging drive incremental margin lift and environmental compliance leadership. Domestic stalwarts like JWD Group and Kiattana Transport defend market share through cultural proximity, price flexibility, and granular lane knowledge. White-space opportunities persist in project cargo, temperature-controlled movements, and digital freight exchanges that match shippers with excess capacity in real time.
Cost inflation and regulatory enforcement are accelerating consolidation. Smaller fleets face financing hurdles when replacing pre-Euro 4 vehicles or subscribing to telematics platforms. Private equity funds are actively scouting bolt-on acquisitions to create regional champions with sufficient scale to negotiate with OEMs and oil majors. The Thailand road freight transport market therefore edges toward moderate concentration yet retains vibrant competitive churn.
Thailand Road Freight Transport Industry Leaders
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DHL Group
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SCGJWD Logistics Public Company Limited
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Linfox Pty Ltd.
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NYK (Nippon Yusen Kaisha) Line
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WHA GC Logistics Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- July 2025: DHL partnered with Saha Group, a subsidiary of Saha Pathanapibul Public Company Limited, to enhance Saha Group's capabilities in both domestic and global e-commerce markets.
- April 2025: DSV finalized its USD 15.78 billion purchase of DB Schenker, creating a logistics leader with EUR 39 billion (USD 43.04 billion) in revenues and expanded reach across Thailand’s Eastern Economic Corridor.
- September 2024: Yusen Logistics restructured Thai operations to streamline supply-chain offerings for automotive and electronics clients clustered in the EEC.
- April 2024: CJ Logistics partnered with Ninja Van and Saigon Co.op, deploying automation and hydrogen trucks to sharpen its cross-border e-commerce credentials in Southeast Asia.
Thailand Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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