Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 562.68 Billion |
| Market Size (2030) | USD 674.49 Billion |
| Growth Rate (2025 - 2030) | 3.69% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
United States Road Freight Transport Market Analysis by Mordor Intelligence
The United States road freight transport market size is valued at USD 562.68 billion in 2025 and is projected to reach USD 674.49 billion by 2030, advancing at a 3.69% CAGR between 2025-2030. This momentum reflects a resilient freight ecosystem that absorbs federal infrastructure spending, manufacturing reshoring programs, and e-commerce fulfillment growth. Dedicated truck lanes funded by the Infrastructure Investment and Jobs Act (IIJA) are shortening peak-hour transit times and improving equipment utilization. Supply chain realignment under the CHIPS and Science Act is pulling semiconductor and life-sciences traffic onto highways, while dynamic-pricing APIs in the LTL segment are unlocking latent capacity. Digital freight matching platforms now steer a rising share of total loads, tightening pickup windows and smoothing seasonal rate swings. Widespread driver shortages and diesel price volatility remain structural headwinds that encourage automation pilots, alternative-fuel tractors, and strategic fleet expansions.
Key Report Takeaways
- By end user industry, manufacturing held 31.46% of the United States road freight transport market share in 2024, while wholesale and retail trade is forecast to expand at a 4.25% CAGR between 2025-2030.
- By truckload specification, full-truck-load operations commanded 79.83% of the United States road freight transport market size in 2024; less-than-truck-load is advancing at a 4.13% CAGR between 2025-2030.
- By destination, domestic shipments accounted for 62.65% of the revenue share in 2024, whereas international freight with Mexico is growing at a 4.29% CAGR between 2025-2030.
- By distance, long-haul services secured 72.15% of the revenue share in 2024 and are projected to grow at a 3.88% CAGR between 2025-2030.
- By containerization, non-containerized freight dominated with 85.83% of the revenue share in 2024, while containerized volumes are set to rise at a 3.77% CAGR between 2025-2030.
- By goods configuration, solid-goods traffic held 73.55% of the revenue share in 2024, whereas fluid-goods freight is expected to expand at a 4.00% CAGR between 2025-2030.
- By temperature control, non-temperature-controlled shipments maintained 94.76% of the revenue share in 2024, while temperature-controlled freight is forecast to increase at a 4.06% CAGR over 2025-2030.
United States Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce fulfillment pressure | +0.8% | Major metropolitan areas nationwide | Medium term (2–4 years) |
| On-shoring of critical supply chains | +0.6% | Industrial Midwest and Southwest corridors | Long term (≥ 4 years) |
| Federal highway funding surge | +0.5% | National freight corridors | Medium term (2–4 years) |
| Dynamic-pricing APIs in LTL | +0.4% | Urban markets | Short term (≤ 2 years) |
| Autonomous and truck-only toll-lane pilots | +0.3% | Texas and Georgia | Long term (≥ 4 years) |
| Digital-broker consolidation | +0.4% | Technology hubs nationwide | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
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E-Commerce Fulfillment Pressure Drives Expedited Capacity Demand
Same-day and next-day delivery benchmarks push carriers to cycle assets faster and slash empty miles. Amazon exceeded 1,000 U.S. fulfillment centers in 2024, concentrating outbound volumes and trimming metro-area dead-head by up to 12%. Expedited freight already supplies 23% of trucking revenue, mirroring retailers’ preference for speed over purely cost-based routing. High-velocity parcel traffic fuels hub-and-spoke densification, fleet telematics upgrades, and trailer pool expansions. Carriers that integrate parcel APIs with truckload networks report narrower pickup windows and improved on-time performance metrics[1]“Bipartisan Infrastructure Law Funding,” Federal Highway Administration, fhwa.dot.gov.
Supply Chain Reshoring Accelerates Domestic Freight Volumes
The CHIPS and Science Act’s USD 52 billion incentive package is anchoring semiconductor fabs in Arizona, Ohio, and Texas. Intel and TSMC projects require heavy-haul moves for lithography tools that can weigh more than 180 metric tons, creating premium flatbed demand. Life-sciences reshoring lifts temperature-controlled freight; pharmaceutical truck-loadings are rising 15% annually as domestic fill-finish sites multiply. Specialized carriers benefit from validated cold-chain trailers and real-time temperature telemetry that meets Good Distribution Practice standards[2]“Biden-Harris Administration Announces Preliminary Terms for TSMC Arizona,” U.S. Department of Commerce, commerce.gov.
Federal Infrastructure Investment Expands Freight Corridor Capacity
The IIJA earmarks USD 110 billion for roads and bridges through 2026, funding targeted debottlenecking along I-10, I-40, and I-95. Bridge weight-rating upgrades across 15,000 structures enable larger payloads and lift ton-mile efficiency by roughly 9% on primary freight corridors. Dedicated truck lanes between Los Angeles and Phoenix shave peak-period travel by up to three hours and allow carriers to schedule additional round-trips within drivers’ hour-of-service limits.
Dynamic-Pricing APIs Transform the LTL Market Structure
Top LTL carriers now publish rate APIs that fluctuate with real-time capacity, density, and seasonal profiles. Old Dominion Freight Line’s deployment boosted network load factor by 15% in 2024 while preserving on-time delivery rates. Automated quoting compresses spot-to-contract price spreads and attracts shipper loyalty through transparency. Smaller regional carriers that lack algorithmic tools are more exposed to wild spot-rate swings and rising terminal costs.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Long-haul driver shortage and AB-5-style laws | −0.9% | Nationwide with California spillover | Long term (≥ 4 years) |
| Diesel price volatility | −0.6% | National rural corridors | Short term (≤ 2 years) |
| OEM production bottlenecks | −0.4% | National manufacturing clusters | Medium term (2–4 years) |
| Urban bridge-and-tunnel toll inflation | −0.3% | Major metropolitan areas | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage Crisis Intensifies Amid Regulatory Pressures
The United States needed 78,000 additional long-haul drivers in 2024, and California’s AB-5 employment classification amplified capacity removal by 15% within the state. Proposed copycat legislation in New York and Illinois risks spreading compliance expenses nationwide. FMCSA drug-and-alcohol clearinghouse rules disqualified 2.3% of CDL holders during 2024, further tightening the labor pool. Carriers respond with signing bonuses, accelerated training programs, and driver-assistance technologies aimed at lowering fatigue[3]“AB-5 Issues,” California Trucking Association, caltrux.org .
Diesel Price Volatility Creates Operational Margin Pressure
Fuel accounts for roughly 28% of operating expenses, yet retail diesel climbed 18% between Q1 and Q3 2024. Surcharge lag eroded operating margins by up to 300 basis points among medium-sized fleets with limited hedging. Persistent energy price swings complicate contract negotiations, elevate cash-flow requirements, and push carriers toward natural gas or electric tractors for regional routes[4]“Weekly Petroleum Status Report,” U.S. Energy Information Administration, eia.gov.
Segment Analysis
By End User Industry: Manufacturing Anchors Demand Growth
Manufacturing generated 31.46% of United States road freight transport market revenue in 2024, underpinned by industrial reshoring and sustained automotive, machinery, and electronics output. The United States road freight transport market size tied to manufacturing will expand steadily as capital-intensive fabs and assembly plants require synchronized inbound and outbound logistics. Wholesale and retail trade, buoyed by e-commerce restocking cycles, is the fastest-growing vertical, advancing at a 4.25% CAGR between 2025-2030. LTL networks with dense metro terminals capture incremental volumes from omnichannel retailers who value flexible pickup cutoffs. Construction freight rides the IIJA-funded project wave, demanding bulk aggregate hauls and oversize concrete girder moves. Agriculture continues to show seasonal peaks; harvest-period spikes often strain trailer availability and push spot rates upward.
Department of Transportation hours-of-service rules create planning complexity for long agricultural and manufacturing lanes, but telematics-driven routing software mitigates downtime. Renewable-energy components and data-center equipment are emerging sub-segments. Flatbed carriers hauling wind-turbine blades and hyperscale server racks earn premium yields thanks to escort-vehicle requirements and specialized tarping. Compliance with electronic logging devices (ELDs) and safety-score benchmarks remains essential for shippers that enforce strict carrier-selection protocols.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Cross-Border Trade Accelerates Growth
Domestic freight held 62.65% of the United States road freight transport market in 2024 as reshoring limited trans-oceanic reliance. Nonetheless, international lanes mainly Mexico-bound are projected to grow 4.29% CAGR between 2025 and 2030. USMCA rule-of-origin incentives boost northbound auto-parts and southbound machinery volumes, while the Customs and Border Protection’s ACE system has cut commercial border crossing times by one-quarter. Carriers operating international lanes must maintain bilingual drivers, maintain C-TPAT certifications, and manage peso-denominated back-haul pricing. Domestic traffic gains from reduced port congestion, but cross-border specialists command margin premiums for navigating dual inspections and cabotage constraints.
International operations also rely heavily on insurance riders to meet Mexican liability frameworks and deploy satellite-based trailer tracking to deter cargo theft in high-risk corridors. The segment is gaining additional traction as near-shoring plants in Monterrey and Chihuahua import U.S. raw materials and export high-value consumer durables.
By Truckload Specification: LTL Services Gain Market Share
Full-truck-load commands nearly four-fifths of all shipments, but the 4.13% CAGR between 2025-2030 anticipated in LTL outpaces the broader United States road freight transport market through 2030. Density-priced pallets, parcel spillover, and returns processing feed LTL terminal volumes. Investments in robotic cross-docks, handheld scanners, and real-time API quoting compress dwell times and raise turns per trailer. FTL still dominates heavy industrial lanes that demand whole-trailer cubic capacity; however, driver scarcity and uncertain diesel costs are raising dedicated-contract rates.
LTL carriers are piloting double-44-ft pup combinations in select states to elevate cubic efficiency within statutory gross-vehicle-weight ceilings. FTL fleets, by contrast, are expanding drop-and-hook programs to mitigate parking shortages and ELD-mandated rest breaks. Insurance minimums under 49 CFR 387 remain higher for LTL given terminal exposure, encouraging carriers to pursue cargo-damage-reduction analytics.
By Containerization: Intermodal Integration Drives Growth
Non-containerized cargo represented 85.83% of 2024 tonnage due to predominant domestic point-to-point moves that bypass rail yards. Containerized freight will nonetheless post a 3.77% CAGR between 2025-2030 as shippers stitch together long-haul rail legs with first- and last-mile drayage. Adoption stems from chassis-pool expansions and port dwell-time reductions in Los Angeles and Long Beach that shortened turn times and bolstered schedule reliability. Motor carriers that operate both drayage tractors and 53-ft domestic containers hedge against imbalances by repositioning boxes on eastbound rail.
Bulk commodity haulers rely on end-dump and pneumatic tankers unsuitable for ISO containers, preserving the dominance of non-containerized moves. Yet high-value electronics importers and big-box retailers increasingly request intact-container truck delivery to avoid trans-loading expenses and damage risk. Equipment availability and rail slot scarcity remain gating factors during peak season.
By Distance: Long-Haul Operations Face Capacity Constraints
Long-haul corridors accounted for 72.15% of mileage-weighted revenue in 2024, and their 3.88% CAGR outlook between 2025-2030 stems from network realignment around super-regional hubs. Dedicated truck-only toll lanes in Texas and Georgia boost lane average speeds by nearly 20%, shaving transit times between Dallas and Atlanta. Despite these gains, driver lifestyle preferences tilt toward daily-home-time regional routes, pressuring fleets to rotate seated tractors more efficiently. Investments in drop-and-hook terminals, sleeper-cab comfort amenities, and automated driver-bonus dashboards aim to reduce turnover that exceeded 90% among large carriers in 2024.
Short-haul segments, though smaller, leverage electric tractors whose 250-mile range fits metropolitan duty cycles. Autonomous highway pilots by Knight-Swift and Aurora target long-haul drags where straight-line interstate segments and limited merges simplify sensor workloads. FMCSA hours-of-service compliance and evolving state rest-area parking rules heavily influence dispatch algorithms on hauls above 600 miles.
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By Goods Configuration: Specialized Equipment Drives Differentiation
Solid-goods traffic captured 73.55% of 2024 revenue, supported by standardized 53-ft dry-van equipment that flexes across consumer packaged goods, electronics, and palletized auto parts. Fluid-goods freight chemicals, fuels, and liquid sweeteners will advance 4.0% CAGR between 2025-2030 thanks to shale-chemicals growth and pool-chemicals seasonality. Tank-truck operators face rigorous 49 CFR 100–185 hazmat compliance, requiring refined driver training and double-valve safety audits. Chemical producers often award multi-year contracts with fuel-surcharge passthroughs, providing revenue stability that tempers overall rate volatility.
Dry-bulk cement carriers see uplift from infrastructure megaprojects, whereas high-cube vans serving furniture e-tailers enjoy scheduling flex from weekend residential deliveries. Fleet managers diversify trailer mix to balance seasonally volatile fertilizer and ethanol volumes against steady consumer durables.
By Temperature Control: Cold-Chain Logistics Expand
Non-temperature-controlled freight remained dominant at 94.76% in 2024, yet cold-chain moves will record a 4.06% CAGR between 2025-2030 as grocery e-commerce climbs and biologics distribution localizes. Pharmaceutical guidelines under 21 CFR Part 1 mandate continuous temperature logging; fleets integrate telematics probes and geofencing alerts to safeguard payload quality. Capital outlays for reefers run 40% higher than dry-vans, but premium per-mile rates offset these costs and lengthen asset life through rigorous preventive maintenance.
Produce importers increasingly demand multi-temp trailers to segregate fresh, frozen, and ambient SKUs, amplifying complexity but unlocking consolidated back-hauls. Sustainability initiatives spur adoption of electric-standby units during dock dwell time, reducing emissions and preserving cargo. Cold-chain specialists collaborate closely with retailers to fine-tune appointment scheduling, mitigating congestion at grocery distribution centers that often lack excess yard capacity.
Geography Analysis
Domestic lanes anchor the United States road freight transport market, drawing 62.65% of value in 2024 and benefiting from IIJA-funded corridor upgrades and reshoring-driven plant logistics. Manufacturing-belt states Ohio, Indiana, and Michigan—generate dense freight clusters that feed hub-and-spoke center-of-gravity models. Regional parcel centers erected by Amazon, Walmart, and Target shorten last-mile trips and create consistent tractor shuttle demand between inbound consolidation hubs and urban sortation sites.
The United States road freight transport market size tied to international lanes is expanding faster, propelled by a 12% 2024 spike in Mexico truck crossings as USMCA incentives reduced certificate-of-origin paperwork. Automotive and appliance flows southbound fill back-haul capacity that traditionally returned empty, elevating average load factors. The ACE e-manifest system lowered wait times by up to 25%, helping carriers turn tractors sooner and easing detention-fee disputes.
Canadian traffic maintains steady growth but wrestles with driver visa backlogs and electronic logging interoperability. Severe winter weather and axle-weight variations necessitate season-adjusted equipment specifications, nudging some U.S. fleets to deploy specialized Canada-compliant tractors. Pacific Northwest timber and dairy freight leverage cross-border balancing, while Ontario-bound auto parts benefit from Great Lakes roll-on/roll-off ferry upgrades that bypass congested border bridges.
Competitive Landscape
The market remains fragmented; 750,000 authorized motor carriers account for a long tail of small fleets alongside a handful of scaled incumbents. Digital freight brokers such as Uber Freight and C.H. Robinson’s acquired Convoy platform handled roughly 18% of U.S. loads in 2024, and penetration could hit 25% by 2030 as API-first load boards lower transaction frictions. Large asset-based carriers differentiate through investment in autonomous-ready tractors, electric vehicle trials, and warehouse automation.
Strategic moves reinforce competitive stratification. FedEx’s USD 3.8 billion acquisition of SEUR broadens trans-Atlantic freight reach, illustrating carriers’ pivot toward door-to-door cross-border solutions. Knight-Swift’s USD 1.2 billion partnership program with Aurora and Waymo advances Level-4 autonomous pilots on long-haul corridors, targeting reduced driver costs and higher asset turns. J.B. Hunt’s USD 500 million electrification plan supports California zero-emission mandates and signals environmental compliance as a future table stake.
Niche specialists command premium margins: tanker fleets with ISO-tank cleaning stations, heavy-haul carriers certified for super-loads, and cold-chain providers with GDP-validated monitoring. Safety-oriented shippers increasingly employ FMCSA Compliance, Safety, Accountability (CSA) scores to screen partners, lifting insurance costs for sub-par operators and accelerating attrition among fringe fleets. MandA activity focuses on acquiring technology stacks route optimization, predictive maintenance, and driver gamification to unlock synergy across dispersed terminals.
United States Road Freight Transport Industry Leaders
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FedEx
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J.B. Hunt Transport, Inc.
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XPO, Inc.
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United Parcel Service of America, Inc. (UPS)
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Knight Swift Transportation
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- October 2024: FedEx completed a USD 3.8 billion acquisition of SEUR, expanding U.S.–Europe freight capabilities.
- September 2024: Knight-Swift committed USD 1.2 billion to autonomous-truck pilots with Aurora and Waymo.
- August 2024: UPS opened a USD 750 million automated hub in Atlanta to lift Southeast capacity by 40%.
- July 2024: C.H. Robinson bought Convoy’s digital-broker platform for USD 240 million, enhancing real-time load matching.
United States Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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