Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.31 Billion |
| Market Size (2030) | USD 1.92 Billion |
| Growth Rate (2025 - 2030) | 7.94% 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. |
|
United Arab Emirates Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The United Arab Emirates courier, express, and parcel (CEP) market size stands at USD 1.3 billion in 2025 and is projected to reach USD 1.91 billion by 2030, registering a 7.94% CAGR between 2025-2030. Strong non-oil trade growth, a busy transshipment ecosystem anchored by Jebel Ali Port and Dubai International Airport, and the government’s network of Comprehensive Economic Partnership Agreements (CEPAs) collectively accelerate shipment volumes while lowering cross-border friction. Additional tailwinds include high urban smartphone penetration that fuels online shopping, continuing infrastructure upgrades at Dubai World Central (DWC) and Abu Dhabi’s Khalifa Economic Zones, and steady inflows of private capital into last-mile automation and cold-chain capacity. Competitive pressure remains moderate as global integrators, regional airlines, and local specialists race to widen service portfolios especially for healthcare, temperature-controlled, and hyper-local delivery niches. Meanwhile, heightened geopolitical volatility in regional sea-lanes underscores the strategic value of diversified air and road corridors that keep the United Arab Emirates courier, express, and parcel (CEP) market resilient in the face of external shocks.
Key Report Takeaways
- By destination, domestic operations held 65.25% of the United Arab Emirates courier, express, and parcel (CEP) market share in 2024, while international shipments are advancing at an 8.23% CAGR between 2025-2030.
- By speed of delivery, non-express services controlled 56.71% of the United Arab Emirates courier, express, and parcel (CEP) market size in 2024 and express options are growing at 8.44% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) channels captured 57.65% share in 2024, whereas consumer-to-consumer (C2C) traffic is set to expand at 4.25% CAGR between 2025-2030.
- By shipment weight, light weight parcels accounted for 58.37% of the revenue share in 2024, with heavy weight parcels increasing at a 6.90% CAGR between 2025-2030.
- By transport mode, air handled 45.66% of volume in 2024; road freight is the fastest-growing sub-mode at 8.02% CAGR between 2025-2030.
- By end user industry, e-commerce generated 43.27% of demand in 2024, and healthcare consignments are set to climb at an 8.33% CAGR between 2025-2030.
United Arab Emirates Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Booming e-commerce penetration | 2.1% | National, with concentration in Dubai and Abu Dhabi | Medium term (2-4 years) |
| Cross-border trade expansion via CEPAS | 1.8% | National, with spillover to GCC region | Long term (≥ 4 years) |
| Logistics-infrastructure build-out (DXB–DWC, Jebel Ali) | 1.5% | Dubai and Abu Dhabi core, national network effects | Long term (≥ 4 years) |
| Digital payment and BNPL adoption boosting online conversion | 1.2% | National, with urban concentration | Short term (≤ 2 years) |
| Hyper-local 15-minute delivery model uptake | 0.9% | Dubai and Abu Dhabi metropolitan areas | Medium term (2-4 years) |
| Green-logistics mandates (EV fleets, SAF) | 0.4% | National, with early adoption in major emirates | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Booming E-Commerce Penetration
Rapid online retail growth reshapes parcel profiles and heightens service-level expectations, with leading marketplaces increasingly promising same-day fulfillment in Dubai and Abu Dhabi. Electronics, fashion, and fast-moving consumer goods dominate order mix, yet temperature-controlled categories such as beauty and groceries are rising fast, pushing carriers to invest in insulated packaging and cold-chain micro-hubs. Card-based and mobile wallets already enjoy near-ubiquitous usage, compressing checkout times and cutting fraud-related reversals. Marketplaces are also co-locating inventory inside airline-linked free zones so that air-to-door transit can be shortened to under 24 hours for key regional lanes. Collectively, these shifts reinforce high-frequency, light-weight parcel flows that underpin the United Arab Emirates courier, express, and parcel (CEP) market[1]“Emirates Post Group launches ‘7X’ brand identity: connecting the world in motion,” Economy Middle East, economymiddleeast.com.
Cross-Border Trade Expansion via CEPAs
By 2025 the UAE has 10 CEPAs in force and a broader portfolio of 26-28 under signature, materially smoothing customs clearance and documentation. The UAE–India accord remains the flagship example: bilateral non-oil trade jumped 20.5%, with Emirati exports soaring 75% since enactment. Faster brokerage windows enable next-day transfer from origin free zone to consignee in Mumbai or Delhi, slashing dwell times and boosting load factors on both air and trucking legs. Similar momentum is evident on newer corridors to Türkiye, Israel, and Indonesia, amplifying outbound parcel density and back-haul utilization. Integrators and postal operators are, in turn, enlarging bonded sortation footprints at Jebel Ali and Dubai South to tap CEPA-enabled flow[2]“DP World and Einride announce Middle East’s largest deployment of electric, autonomous freight mobility,” Einride, einride.tech.
Logistics-Infrastructure Build-Out
Major air-sea-road mega-projects continue to raise network capacity. FedEx’s USD 350 million automated facility at DWC sorts 9,000 packages per hour and brings integrated pharma storage under one roof. At the waterfront, DP World and Einride plan 1,600 daily electric truck moves inside Jebel Ali, targeting 14,600 metric tons of annual CO₂ savings. Meanwhile, Emirates SkyCargo’s decision to add hydrogen-powered trucks from 2026 signals that green engines will soon complement electric fleets on inter-emirate lanes. These upgrades reinforce the United Arab Emirates courier, express, and parcel (CEP) market by trimming line-haul costs and delivering reliability that rivals premium airfreight transit.
Digital Payment and BNPL Adoption
The Central Bank’s accelerated rollout of real-time rails and forthcoming Digital Dirham paves the way for instant settlement, cutting reverse-logistics cycles tied to cash-on-delivery. Local banks and global schemes now offer installment checkouts, spurring average basket expansion and broadening the demographic of online buyers. Merchants reward prepaid orders with fee waivers or loyalty credits, nudging penetration away from cash and trimming cash-handling overhead faced by delivery fleets. Carriers are also integrating payment wallets into driver handhelds, allowing couriers to finalize transactions at the doorstep and remit digitally by end of route. The resulting efficiency uptick enhances margins across the United Arab Emirates courier, express, and parcel (CEP) market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High last-mile cost and COD complexity | -1.3% | National, with higher impact in remote areas | Short term (≤ 2 years) |
| Labor-supply constraints and rising wages | -0.8% | National, with concentration in major emirates | Medium term (2-4 years) |
| Geopolitical air-corridor disruptions | -0.7% | Global, with regional concentration in Middle East | Short term (≤ 2 years) |
| Fragmented addressing and postcode system causing delivery failures | -0.5% | National, with higher impact in newer developments | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Last-Mile Cost and COD Complexity
Cash-on-delivery orders still account for a sizable share of B2C traffic, forcing couriers to reconcile funds and carry return risks that push unit costs 15-25% above prepaid equivalents. Though Dubai’s Makani and Abu Dhabi’s Onwani digital address schemes have improved accuracy, patchy coverage in newer or low-density districts raises re-delivery attempts and driver idle time. Carriers are trialing dynamic micro-depots and bike couriers to shrink travel radii, yet route density remains below optimal levels outside core business zones. Investments in AI-driven routing and doorstep POS terminals offer relief but cannot fully offset the inherent manual touches that weigh on profitability[3]“Emirates launches Emirates Courier Express,” Air Cargo Week, aircargoweek.com.
Labor-Supply Constraints and Rising Wages
Transport and logistics job vacancies consistently outstrip applicant pools as post-pandemic population inflows and a hot construction pipeline absorb blue-collar talent. Recruiting couriers with adequate language skills and customer-service training is especially challenging during seasonal peaks such as Ramadan sales or Singles’ Day promotions. Wage inflation narrows margins for small and medium subcontractors that rely on flexible labor, prompting some operators to pilot autonomous sidewalk robots or drones where regulations permit. While automation holds long-run promise, upfront capital and regulatory hurdles limit immediate scalability, keeping wage pressures front and center[4]“Dubai South and Expeditors Partner to Launch New Facility in Logistics District,” Emirates 24/7, emirates247.com.
Segment Analysis
By End User Industry: Healthcare Races Ahead
E-commerce remained the top vertical at 43.27% in 2024, yet healthcare consignments—encompassing prescription drugs, vaccines, and diagnostic samples are set to post an 8.33% CAGR between 2025-2030. Regulatory alignment with EU GDP (Good Distribution Practice) and the Ministry of Health’s strict cold-chain audit regime catalyze carrier investments in GDP-certified vehicles and data-loggers. Emirates’ cargo arm has quadrupled cool-cell capacity since 2023, allowing temperature-sensitive parcels to transfer within two hours of touchdown.
Manufacturing-led shipments, including oilfield spares and aerospace components, provide steady baseline volume, while luxury retail benefits from tourism-induced spending. Financial and legal documents, though declining in volume due to digitization, still demand chain-of-custody security, sustaining premium document couriers inside the United Arab Emirates courier, express, and parcel (CEP) market.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Momentum Outpaces Domestic Stronghold
Domestic deliveries still anchor 65.25% of the United Arab Emirates courier, express, and parcel (CEP) market in 2024, fueled by dense intra-city e-commerce traffic and established COD workflows. Yet the international lane propelled by CEPA tariff relief, bonded free-zone services, and airline belly-hold capacity is expanding at an 8.23% CAGR between 2025-2030 that eclipses domestic growth. Emirates SkyCargo and integrators like DHL Express increasingly route South Asian, African, and European parcels through Dubai as a central pivot, reducing total transit times by up to 48 hours compared with traditional sea-air alternatives. Pharmaceutical and high-value electronics brands now leverage these consolidated flows for time-definite deliveries into India and East Africa, paying premiums that lift segment yields.
The domestic market, though mature, is not static. Same-day grocery, meal kit, and electronics replacements require tighter fulfillment radii and push fleets toward electric vans and motorcycles suitable for urban alleys. Government smart-city programs are allocating curb-side loading bays and parcel lockers, helping carriers shave unloading times. As address digitization broadens, failed delivery rates are projected to fall, preserving the domestic segment’s cost competitiveness even while international lanes gain strategic prominence across the United Arab Emirates courier, express, and parcel (CEP) market.
By Speed of Delivery: Express Services Capture Premium Demand
Express shipments accounted for 43.29% of value in 2024 and are registering an 8.44% CAGR between 2025-2030, significantly outstripping standard services. The acceleration stems from both consumer expectations—shaped by on-demand food apps—and corporate urgency for spare parts and medical supplies. Emirates Courier Express, launched in 2025, connects the airline’s overnight network with a dedicated door-to-door service, giving SMEs a near-instant upgrade path without investing in their own distribution footprint.
Standard, economy-timed parcels retain scale among cost-sensitive segments such as books and non-urgent apparel. However, technology adoption is narrowing the cost delta as route-optimization software reduces stem-time for express fleets. By 2030, market analysts expect express options to equal standard tariffs on intra-emirate lanes below 10 kg, blurring historic distinctions inside the United Arab Emirates courier, express, and parcel (CEP) market.
By Shipment Weight: Light Parcels Dominate but Heavy Segments Climb
Light weight parcels accounted for 58.37% of revenue in 2024, reflecting the primacy of fashion accessories, beauty items, and small electronics. Their high stop density enables couriers to employ compact electric vans and e-bikes, optimizing energy consumption in urban centers. Medium weight parcels serve a hybrid buyer base—ranging from sports gear to bulk grocery cartons—and function as an operational bridge between mail and palletized freight.
Heavy weight parcels are smaller in count yet exhibit a 6.90% CAGR between 2025-2030, tied to manufacturing diversification under the “Make It in the Emirates” initiative. Industrial machinery, solar panels, and medical equipment increasingly originate from UAE plants, traveling outbound to regional customers. These heavier flows necessitate tail-lift trucks and reinforced packaging, driving specialized fleet procurement among leading providers. Margins remain attractive because shippers value white-glove handling and installation assistance, reinforcing carrier willingness to invest.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Accelerates Under Electric and Autonomous Push
Air retained a 45.66% share in 2024 thanks to Dubai’s role as the world’s busiest international cargo airport. Nevertheless, road freight is expanding at 8.02% CAGR between 2025-2030 as electric truck rollouts lower per-kilometer costs and autonomous convoys unlock overnight utilization. The Falcon Rise corridor, spanning 240 miles and targeting 2,000 electric vehicles—including 200 self-driving units aims to synchronize pick-up times with Jebel Ali’s port windows to minimize staging delays.
Maritime feeder services carry niche volumes like sea-air consolidated freight bound for East Africa, while the future GCC rail network promises dual benefits of sustainability and reliability for bulk e-commerce cargo. Truck-air interchanges at DWC streamline multimodal transfers, delivering a blended cost and speed proposition that strengthens the United Arab Emirates courier, express, and parcel (CEP) market.
By Model: B2C Leads, C2C Gains Traction
B2C parcels represent the largest share at 57.65% in 2024, driven by retail chains outsourcing fulfillment and cross-border marketplaces offering landed-cost checkout. Reverse logistics also fall largely under B2C, with fashion returns peaking during seasonal sales. Despite this dominance, the C2C niche, powered by resale platforms and social-commerce storefronts, is forecast to log a 4.25% CAGR between 2025-2030. Affordable prepaid satchels and app-based pick-up scheduling lower entry barriers for casual sellers, unlocking incremental volumes.
Corporate senders still rely on B2B networks for contract-based recurring shipments of documents, spare parts, and medical consumables. Value-added warehousing inside free zones allows these shippers to stage inventory closer to GCC customers, thereby leveraging deferred-duty regimes. Continuing diversification of the UAE economy especially into clean energy equipment and semiconductors—will sustain a balanced mix of B2B and B2C consignments across the United Arab Emirates courier, express, and parcel (CEP) market.
Gography Analysis
Dubai generates roughly 60% of national parcel throughput owing to its dual airport-seaport infrastructure and concentration of online sellers. Abu Dhabi follows, buoyed by sovereign investment in pharmaceuticals, agri-tech, and defense manufacturing that attract high-value B2B consignments. The northern emirates—Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain—collectively account for the balance yet log double-digit growth as population and industrial bases migrate beyond the two largest cities.
Inter-emirate distances rarely exceed 200 km, enabling same-day delivery between most economic clusters. Highway E11 upgrades and the planned Etihad Rail freight link will further compress door-to-door times. Cross-border access via Saudi Arabia’s land corridor funnels parcels into the wider GCC; carriers already stage Saudi-destined orders in Dubai warehouses and dispatch consolidated loads nightly.
Free zones such as Dubai South Logistics District and KEZAD offer bonded warehousing, automated customs, and duty deferment, encouraging regional distribution models centered in the UAE. Coupled with robust 5G and fiber coverage that supports IoT tracking, these geographic advantages reinforce the United Arab Emirates courier, express, and parcel (CEP) market’s role as the Middle East’s de facto fulfillment nucleus.
Competitive Landscape
Competition remains moderately consolidated between global integrators, regional airlines, and agile local specialists. DHL, FedEx, UPS, and Aramex retain sizable footprints, but newer entrants leverage technology to carve out niches. Drone-operator Keeta secured the nation’s first Beyond Visual Line of Sight license in late 2024, signaling regulator readiness to accommodate unmanned aviation in commercial delivery.
ADQ’s majority stake acquisition of Aramex in 2025 injects sovereign capital that could accelerate fleet electrification and regional expansion. Meanwhile, Emirates launched its Courier Express brand to monetize belly-hold capacity and capture B2C door-delivery traffic that traditional cargo contracts overlooked.
Niche players specialized in healthcare, luxury, or bulky white-goods continue to thrive by deploying GDP-certified vehicles or value-added installation crews. Sustainability regulation under the 2024 Federal Climate Change Reduction Law is likely to raise compliance hurdles, advantaging better-capitalized incumbents that can fund fleet upgrades. The resulting shake-out opens M&A opportunities and could progressively concentrate the United Arab Emirates courier, express, and parcel (CEP) market over the coming decade.
United Arab Emirates Courier, Express, And Parcel (CEP) Industry Leaders
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Aramex
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DHL Group
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Emirates Post
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FedEx
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United Parcel Service of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Emirates unveiled a dedicated Courier Express aircraft livery to underline its April 2025 service launch targeting door-to-door express consignments.
- April 2025: Emirates SkyCargo confirmed plans to introduce hydrogen-powered trucks by 2026, reinforcing its low-carbon logistics roadmap.
- February 2025: Dubai South and Expeditors International opened a 23,200 m² omni-channel logistics facility, adding automated pick-and-pack and temperature-controlled zones.
- January 2025: ADQ completed its majority stake acquisition in Aramex, bolstering the carrier’s balance sheet for GCC expansion.
United Arab Emirates 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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