Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 192.82 Billion |
| Market Size (2030) | USD 239.38 Billion |
| Growth Rate (2025 - 2030) | 4.42% 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. |
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United States Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The United States courier, express, and parcel market size stands at USD 192.82 billion in 2025 and is projected to reach USD 239.38 billion in 2030, advancing at a 4.42% CAGR between 2025-2030. Recent volume gains stem from a resilient e-commerce base, normalization of omnichannel inventories, and the return of corporate mailers that paused discretionary spending in 2024. Consolidation among regional carriers, the U.S. Postal Service’s re-priced Ground Advantage product, and disciplined capacity additions by integrators have tempered competitive pricing during peak seasons. Technology upgrades—ranging from API-driven visibility tools to AI-assisted sortation—continue to improve network velocity, especially in high-density corridors. At the same time, headwinds such as union wage settlements, road congestion, and shifting de-minimis thresholds keep operating costs elevated, nudging carriers toward greener fleets and contract renegotiations that better align pricing with service guarantees.
Key Report Takeaways
- By destination, domestic shipments led with a 76.42% of the United States courier, express, and parcel market share in 2024, while international shipments are forecast to expand at a 4.70% CAGR between 2025-2030.
- By speed of delivery, non-express services held 76.96% of the United States courier, express, and parcel market size in 2024; express delivery is projected to grow at a 5.14% CAGR between 2025-2030.
- By model, business-to-consumer (B2C) accounted for 54.73% of the revenue share in 2024, whereas consumer-to-consumer (C2C) values are advancing at a 3.35% CAGR between 2025-2030.
- By shipment weight, lightweight parcels captured 74.95% of the revenue share in 2024, and medium-weight parcels are on track for a 3.32% CAGR between 2025-2030.
- By mode of transport, road services controlled 51.34% of the revenue share in 2024; air services register the highest modal growth at a 3.76% CAGR between 2025-2030.
- By end user industry, e-commerce generated 42.52% of 2024 revenues, whereas healthcare parcels are forecast to rise at a 4.64% CAGR between 2025-2030.
United States Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce order volumes post-pandemic | +1.2% | National; CA, TX, FL, NY | Medium term (2-4 years) |
| Growth of same-day / on-demand delivery | +0.8% | Urban cores expanding into suburbs | Short term (≤ 2 years) |
| Omnichannel and store-based fulfillment | +0.6% | National, urban concentration | Medium term (2-4 years) |
| USPS Ground Advantage capacity | +0.4% | Rural and suburban nationwide | Short term (≤ 2 years) |
| Rise in C2C recommerce volumes | +0.3% | National, urban clusters | Medium term (2-4 years) |
| EV-fleet purchase incentives | +0.2% | Urban centers, California | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Explosive E-commerce Order Volumes Post-Pandemic
A sustained shift toward online buying keeps the order book elevated well beyond the 2024 holiday peak, when U.S. retailers logged 255% more Black Friday transactions than average October Fridays[1]Radial, “Retailers Plan for Big Changes to the Way People Shop in 2024,” radial.com. High-volume corridors now stretch beyond coastal megapolises, with 52% of national e-commerce parcels originating in only nine states, enabling carriers to raise daily stop density and lower last-mile unit costs. Consumers increasingly expect full shipment visibility; as a result, retailers integrate carrier APIs that push proactive alerts, minimizing “where-is-my-package” inquiries and smoothing courier workloads. Elevated demand pressures sortation hubs, prompting integrators to deploy machine-vision scanners that reduce mis-sorts and support flexible labor models during volume surges. These structural gains sustain the 1.2-point uplift to the United States courier, express, and parcel market CAGR over the medium term.
Growth of Same-Day / On-Demand Delivery Ecosystems
Same-day fulfillment has moved from optional to essential, with 26% of merchants targeting 2-day delivery and 12% pursuing next-day as their standard promise[2]ShipBob, “State of Ecommerce Fulfillment Report 2024,” shipbob.com. Autonomous sidewalk robots, delivery drones, and micro-fulfillment nodes now cluster within five miles of dense consumer pockets, cutting average transit to below two hours for enrolled merchants. Suburban adoption accelerates as cost-per-delivery drops and consumers display parity in urgency preferences compared with urban peers. In response, 45% of retailers plan to embed AI-driven shipping software that optimizes carrier mix and automates exception handling, while 51% budget predictive analytics for returns to shrink reverse-logistics overhead. Fragmented municipal regulations, however, necessitate costly jurisdiction-specific compliance, nudging multi-city carriers to pilot modular hardware that meets varying curb-space mandates. The ecosystem’s 0.8-point boost to CAGR is front-loaded into the next two years.
Retailers’ Shift to Omnichannel and Store-Based Fulfillment
More than 81% of U.S. retail executives now leverage stores as micro-distribution nodes, transforming sales floors into forward-stocking locations that remove middle-mile transfers. Ship-from-store models trim delivery zones, and merchants operating at least three fulfillment centers see 25% average cost savings plus 15% faster transits compared with single-node shipping. Carriers capitalize by realigning pickup windows and embedding dynamic routing that sequences store dispatches alongside traditional DC tender volumes. Inventory decentralization continues, with 36% of brands planning to add fulfillment sites in 2025, pushing more origin ZIP codes into parcel networks. Out-of-home options grow as 26% of shoppers prefer third-party pick-up points, supporting consolidated drop-off runs that temper emissions and lower per-stop expenses. Collectively, omnichannel moves contribute a 0.6-point CAGR lift to the United States courier, express, and parcel market.
USPS Ground Advantage Relaunch Expanding Low-Cost Capacity
The July 2024 consolidation of USPS retail ground and Parcel Select into Ground Advantage lowers price benchmarks for sub-70-pound parcels, undercutting UPS and FedEx equivalents by double-digit percentages in some lanes[3]United States Postal Service, “USPS Launches Ground Advantage Service,” usps.com. The universal-service footprint lets the Postal Service reach 164 million addresses daily, giving rural shippers a budget-friendly alternative when speed is secondary. Operationally, Ground Advantage leverages existing Priority Mail sortation, keeping service targets within two to five days while improving network utilization. Private competitors respond with value-added layers—insurance, signature capture, and temperature protection—that differentiate beyond raw rate cards. Although project savings are incremental, the product’s scale adds a 0.4-point positive swing to market CAGR during the short term.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating union wage and benefit costs | -0.7% | Union-dense markets nationwide | Long term (≥ 4 years) |
| Aging road and bridge infrastructure | -0.5% | Northeast, Midwest, selected interstates | Long term (≥ 4 years) |
| Urban curb-space regulations | -0.3% | Major metropolitan areas | Short term (≤ 2 years) |
| Stricter de-minimis rules | -0.2% | Cross-border flows | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Escalating Union Wage and Benefit Costs for Drivers
The driver pool tightens as the shortage persists at 80,000 positions in 2025, and demographic shifts could more than double the gap by 2030[4]American Transportation Research Institute, “ATRI Releases 2024 Top Industry Issues Report,” truckingresearch.org. Large integrators confront turnover above 90%, forcing wage escalators and retention bonuses that ripple through regional peers. Collective-bargaining rounds reset industry baselines, compelling non-union fleets to match headline figures or risk capacity attrition during peak periods. Classification reforms threaten the owner-operator model that underpins smaller parcel contractors, potentially raising compliance outlays and narrowing net margins. Over the long term, escalating wages shave 0.7 points from the market CAGR as carriers pass along costs through general rate increases that may curb discretionary shipment growth.
Aging Road and Bridge Infrastructure Causing Delays
U.S. highways continue to operate under a “D” grade, and 42% of bridges have reached or passed the 50-year mark, contributing to USD 95 billion in annual congestion costs for trucking. Limited truck parking—just one space for every 11 rigs—pushes drivers to spend an hour daily seeking compliant rest areas, disrupting delivery promises, and eroding productivity. Weight-restricted bridges force costly detours that reduce network velocity and inflate fuel burn. While the Infrastructure Investment and Jobs Act allocates USD 110 billion for upgrades, shovels-in-ground timing extends into the late 2020s, leaving little near-term relief. The resulting inefficiencies trim 0.5 points off the United States courier, express, and parcel market CAGR over the forecast horizon.
Segment Analysis
By End User Industry: E-Commerce Leads, Healthcare Vaults Forward
E-commerce contributed 42.52% of 2024 shipments and remains the lodestar for parcel demand, driven by marketplace promotions, buy-now-pay-later penetration, and social-commerce crossover events. High order frequency keeps fulfillment centers pulsing, while returns programs extend parcel counts into the reverse pipeline. Healthcare rises at a 4.64% CAGR between 2025-2030, fueled by controlled-temperature pharmaceuticals, at-home diagnostic kits, and telehealth devices subject to strict chain-of-custody regulations.
Carriers with Verified-Accredited Wholesale Distributor status win share in temperature-controlled lanes, leveraging sensor-equipped packaging that records lane-level compliance for FDA audits. The manufacturing sector leans on just-in-time parts replenishment, while wholesale and retail trade entities optimize replenishment frequency using predictive shelf-stock analytics. Together, these verticals fortify the United States courier, express, and parcel market share, cushioning it against sector-specific downturns and broadening the service blueprint.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Networks Anchor Volumes While Cross-Border Parcels Accelerate
Domestic shipments own a 76.42% slice of the United States courier, express, and parcel market in 2024, buoyed by unified regulations, standardized addressing, and dense last-mile coverage that reaches virtually every ZIP code. Stable household consumption, robust small-business formation, and USPS universal-service guarantees keep origin-and-destination pairs overwhelmingly domestic. The international leg, while smaller, expands at a 4.70% CAGR between 2025-2030 as U.S. sellers list on global marketplaces and Canadian and Mexican consumers tap U.S. assortment breadth.
International growth leans on simplified electronic customs declarations and improved hand-off protocols with foreign posts, but looming de-minimis revisions threaten to add paperwork and brokerage fees. Carriers hedge by investing in section-321 compliance engines that parse product classifications in real time. Network planners also deploy hybrid truck-air models across the US-Mexico border to sidestep congestion at Laredo and Otay Mesa, protecting service commitments during peak periods. The evolving cross-border mix ensures that the United States courier, express, and parcel market size linked to global flows grows in both absolute and relative terms over the decade.
By Speed of Delivery: Express Builds Momentum Amid Resilient Non-Express Baseline
Non-express offerings carried 76.96% of 2024 revenues, a testament to consumers’ continued willingness to trade speed for cost when reliable tracking is provided. Yet express parcels outpace at a 5.14% CAGR between 2025-2030 as merchants embed next-day options on high-repeat SKU catalogs. Carrier investments in regional airlift and late cutoff consolidations shorten zone-skip distances, delivering premium-speed service within cost envelopes once reserved for ground.
Consumer surveys show 65% of shoppers accept slower delivery for free shipping, but net-promoter scores jump by double digits when optional, paid express is available, prompting retailers to offer tiered shipping at checkout. Mid-mile digital twins model real-time hub congestion, redirecting premium parcels to under-utilized sort centers, thereby protecting scan-on-time metrics. Strategically, carriers with proprietary air fleets widen moat advantages as belly-hold capacity tightens; meanwhile, ground-based couriers partner with night-shift charter operators to extend overnight reach. Together, these trends bolster the express niche without cannibalizing the core non-express foundation of the United States courier, express, and parcel market.
By Shipment Weight: Lightweight Parcels Reign While Mediumweight Gains Track
Lightweight articles captured 74.95% of the 2024 parcel count, propelled by the unboxing culture around beauty samples, low-ticket fashion, and single-unit household essentials. Dimensional pricing policies, coupled with packaging-rightsizing software, help shippers drive down billable weight, reinforcing the lightweight bias. Nevertheless, mediumweight parcels post a 3.32% CAGR between 2025-2030 as bulk pantry restocks, home-office supplies, and pet food auto-ship programs encourage larger baskets at less frequent intervals.
Carriers recalibrate sortation chutes to segregate SKUs above five pounds, reducing jam risk and keeping flow rates optimal. Network planners add mid-cube vans with fold-down shelving to improve loading efficiency for mid-range parcels that generate higher revenue per stop but demand more cubic capacity. Eco-focused brands consolidate multi-SKU orders, marketing carbon-savings dashboards that reward consumers for fewer shipments. These behavioral shifts diversify revenue streams and maintain balance within the United States courier, express, and parcel market size, ensuring service offerings meet both micro-purchase and bulk-buy preferences.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Retains Core Share as Air Lifts High-Value Segments
Road transport controlled 51.34% of volumes in 2024, leveraging the contiguous highway grid and asset-light independent service provider networks that penetrate suburban and rural drop points within two-day ground transits. Driver shortages challenge line-haul capacity, but dynamic line-haul swaps and relay stations compress dwell time at terminals. Air transport's 3.76% CAGR between 2025-2030 rides express parcel growth and the return of electronics and healthcare launches requiring overnight coast-to-coast coverage.
Airport-adjacent mega-hubs integrate tilt-tray sorters and robotics arms that bag shipments for aircraft load plans in under 30 minutes, boosting throughput during late-night banks. Forwarders experiment with sustainable aviation fuel agreements to counter rising carbon-disclosure mandates from enterprise shippers. Meanwhile, intermodal rail-truck blends move consolidation volumes on predictable corridors, freeing scarce over-the-road drivers for shorter P&D legs. The modal mosaic equips the United States courier, express, and parcel market with both speed and cost levers aligned to shipper budget constraints and customer promise tiers.
By Model: B2C Dominance Faces C2C Upswing
B2C parcels held 54.73% market share in 2024, reflecting the entrenched e-commerce habit among U.S. households and the streamlined checkout integrations on major marketplaces. Subscription box programs and direct-to-consumer brand launches keep B2C pipelines flowing with lightweight, high-frequency shipments. At the same time, C2C traffic climbs at a 3.35% CAGR between 2025-2030 on the back of recommerce platforms that monetize closets, garages, and second-hand luxury.
C2C sellers typically rely on simplified label print portals that auto-inject shipment data into carrier systems, reducing first-scan exceptions and improving parcel-life cycle transparency. Freight-broker startups provide vetted drop points where casual sellers can deposit packages without standing in line, further spurring adoption. B2B demand remains steady as manufacturers replenish dealer networks on shortened lead-time contracts, solidifying a three-legged model mix that compels carriers to maintain versatile rate cards, scheduled pickups, and invoice terms. Such heterogeneity enriches the United States courier, express, and parcel market by spreading revenue sources across consumer and enterprise wallets, enhancing resilience against sector-specific shocks.
Geography Analysis
Domestic corridors continue to anchor 76.42% of 2024 parcels, with density clustering in nine high-consumption states that generate more than half of U.S. e-commerce order lines. Carriers intensify hub automation in California’s Inland Empire, Dallas-Fort Worth, and Central Florida to manage surging origin volumes and uphold same-day commitments. Midwest networks regain momentum as near-shored manufacturing in Indiana and Ohio increases B2B parcel outflows that feed secondary markets.
International shipments, smaller in size, record a 4.70% CAGR between 2025-2030 as U.S. merchants add direct-to-consumer storefronts in Europe and Asia. The U.S.–U.S.-Mexico-Canada Agreement continues to promote northbound and southbound truck parcel flows exceeding USD 78 billion in December 2024 alone, incentivizing carriers to set up bilingual support desks and expedited customs corridors. East-bound air cargo lanes into Europe benefit from integrated GLS and DSV partnerships, offering synchronized line-haul and last-mile handoffs that shave 48 hours off historical transit times.
Rural America—often underserved—gains incremental capacity from USPS Ground Advantage routes that anchor last-mile costs below private alternatives, sustaining subscriber-box programs for household staples. Federal infrastructure projects, though slow to deliver immediate throughput relief, will expand bridge weight limits and interchange ramps late in the forecast period, loosening choke points along I-95 and I-35. The geographic tapestry thus ensures the United States courier, express, and parcel market remains deeply domestic yet progressively global.
Competitive Landscape
Competition remains moderately consolidated, with national integrators leveraging proprietary air fleets, multi-tenant sortation hubs, and enterprise-grade IT stacks to defend margin. Regional specialists like OnTrac test seven-day schedules and coast-to-coast partnerships that promise precise PDP-level delivery dates, courting mid-market e-commerce sellers seeking differentiated speed at ground-rate pricing. The DSV acquisition of DB Schenker signals renewed global scale ambitions, which could converge freight forwarding and parcel streams for high-value B2B shippers.
Technology is the primary battleground. UPS launches AI-driven dynamic route optimization, FedEx pours USD 2.5 billion into warehouse automation, and Amazon earmarks USD 15 billion for robotics-enabled fulfillment stations, with an eye on suburban two-hour coverage. Autonomous mobile robots now conduct live parcel hand-offs in gated communities, while machine-learning models forecast weather-related disruptions up to seven days out, guiding proactive line-haul diversions.
Labor negotiations remain pivotal. UPS’s tentative 2024 deal with the Teamsters sets wage benchmarks that ripple across competitor payrolls. Integrators accelerate green-fleet pilots to satisfy corporate carbon-reduction mandates, thereby reducing diesel exposure amid volatile fuel markets. Collectively, these moves reinforce a market structure where network-scale players and agile regionals coexist, heightening service quality and innovation across the United States courier, express, and parcel market.
United States Courier, Express, And Parcel (CEP) Industry Leaders
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United States Postal Service (USPS)
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Amazon Logistics
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UPS
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FedEx
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OnTrac
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- October 2025: USPS launches the Informed Delivery mobile app, enhancing real-time package management for end consumers.
- September 2025: OnTrac and Fenix Commerce roll out a seven-day delivery promise with PDP-level date precision, allowing retailers to monetize speed gains.
- April 2025: Amazon commits USD 15 billion to new U.S. fulfillment centers and delivery stations, integrating advanced robotics for same-day coverage.
- February 2025: GLS completes trans-Atlantic integration, enabling direct parcel delivery between the U.S. and 40 European countries, streamlining customs and line-haul routing.
United States 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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