Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 9.86 Billion |
| Market Size (2030) | USD 13.15 Billion |
| Growth Rate (2025 - 2030) | 5.94% CAGR |
| Market Concentration | High |
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 Same Day Delivery Market Analysis by Mordor Intelligence
The United States same day delivery market size is USD 9.86 billion in 2025 and is projected to reach USD 13.15 billion in 2030, registering a 5.94% CAGR over 2025-2030, as measured in value terms. Demand expansion mirrors a structural swing toward instant-gratification commerce, propelled by urbanization and deeper e-commerce penetration that together shorten acceptable delivery windows. Retailers in every vertical now treat same-day delivery as a core customer-experience lever instead of a discretionary premium, driving continuous investment in micro-fulfillment hubs, AI-powered routing, and electric last-mile fleets. Service density remains strongest inside tier-1 metro areas, yet suburban corridors that saw pandemic-era migration now show rising order volumes, pulling network reach beyond the traditional city core. Competitive differentiation increasingly rests on technology maturity and fleet electrification readiness, especially in jurisdictions such as California that enforce zero-emission delivery rules.
Key Report Takeaways
- By end user industry, e-commerce accounted for 53.40% of United States same day delivery market share in 2024, while wholesale and retail trade (offline) is advancing at a 6.12% CAGR between 2025-2030.
- By shipment weight, light-weight parcels commanded 76.24% share of the United States same day delivery market size in 2024; medium-weight parcels are expanding at a 5.64% CAGR between 2025-2030.
- By destination, domestic routes represented 80.34% of the revenue share in 2024, whereas international services post the fastest 6.18% CAGR during 2025-2030.
- By mode of transport, road held 51.02% revenue share in 2024; air transport records the highest 6.00% CAGR between 2025-2030.
United States Same Day Delivery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosion of e-commerce spending | +1.8% | National, concentrated in major metropolitan areas | Medium term (2-4 years) |
| Rising consumer expectations for rapid fulfillment | +1.2% | Urban centers, expanding to suburban markets | Short term (≤ 2 years) |
| Expansion of delivery networks by retailers and 3PLs | +1.0% | National, with focus on tier-1 and tier-2 cities | Medium term (2-4 years) |
| Last-mile tech investments (AI, AVS, drones) | +0.8% | Urban pilot markets, scaling to suburban areas | Long term (≥ 4 years) |
| Micro-fulfillment inside big-box stores | +0.6% | Metropolitan areas with high retail density | Medium term (2-4 years) |
| Sustainability-driven modal shift to ground within 50 miles | +0.4% | California, Northeast corridor, expanding nationally | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Explosion of E-Commerce Spending
United States e-commerce penetration climbed to 15.6% of total retail sales in 2024, reflecting a sustained post-pandemic habit shift toward digital purchasing. Greater purchase frequency, especially among Gen Z and millennials, pushes a rising share of carts into the same-day promise window. Amazon’s expansion to 120+ metros created a service benchmark that bricks-and-mortar rivals rapidly emulate to curb churn. These moves reinforce a network-density flywheel in which higher order counts justify incremental micro-fulfillment nodes, further shrinking last-mile distances. As a result, the United States same day delivery market captures volumes once fulfilled by conventional two-day ground services[1]“Monthly Retail Trade Report,” U.S. Census Bureau, census.gov.
Rising Consumer Expectations for Rapid Fulfillment
Survey data show that 73% of U.S. shoppers expected same-day arrival on urgent purchases in 2024, up from 61% two years earlier. Heightened expectations spill into health-care scripts and high-value financial documents where compliance and privacy create low tolerance for delays. Retailers react by repositioning inventory into proximity-based nodes; Walmart’s conversion of thousands of stores into local fulfillment points illustrates scale advantages in this shift. The collective effect is to ingrain rapid fulfillment as a baseline customer promise, expanding the United States same day delivery market across product categories once deemed unsuitable for ultrafast service[2]“Consumer View of Retail Technology 2024,” National Retail Federation, nrf.com.
Expansion of Delivery Networks by Retailers and 3PLs
Traditional carriers partner with regional players to tighten coverage gaps, while big-box chains retrofit back-of-store space for on-demand picking. Target’s sortation-center roll-out in 15 metros trimmed average last-mile distance to under 10 miles and cut cycle time by 35%. These dense network topologies reduce dwell time inside vehicles and improve driver utilization, lifting overall delivery economics. Simultaneously, 3PLs deploy shared micro-warehouses that deliver scale benefits to mid-tier merchants. Such capacity additions underpin the continued expansion of the United States same day delivery market during the forecast horizon.
Last-Mile Tech Investments (AI, AVs, Drones)
UPS’ ORION platform delivered 15% routing efficiency in 2024, directly lowering fuel spend and carbon intensity per stop. Autonomous vans, piloted by Waymo in Phoenix and San Francisco, demonstrate feasibility for high-volume urban corridors, while drones in medical use cases slash transport time when road congestion peaks. AI-driven demand prediction permits dynamic fleet staging, shrinking idle miles and supporting profitable price points. These combined innovations improve capacity scalability as order velocity climbs inside the United States same day delivery market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High operating costs and tight margins | -1.4% | National, particularly affecting smaller operators | Short term (≤ 2 years) |
| Labor shortages and gig-driver turnover | -1.1% | Urban markets with high cost of living | Medium term (2-4 years) |
| Urban congestion-pricing and curb-space rules | -0.8% | Major metropolitan areas, expanding to mid-size cities | Medium term (2-4 years) |
| Data-privacy limits on real-time tracking data sharing | -0.5% | California and states with strict privacy regulations | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Operating Costs and Tight Margins
Industry operating margins sit in a 3-5% band, materially below traditional ground parcel averages. Fuel volatility and surcharges cannot always offset surge-season costs, pushing smaller fleets toward consolidation. Customers push for free same-day offers, eroding per-order profitability unless offset by basket-size expansion. Without economies of scale, regional providers face cash-flow stress that could narrow participation in the United States same day delivery market[3]“Air Traffic Publications and Notices,” Federal Aviation Administration, faa.gov.
Labor Shortages and Gig-Driver Turnover
The national driver deficit touched 80,000 positions in 2024. Turnover exceeds 90% annually for some gig platforms, inflating recruitment and training expense. FedEx responded with USD 5,000 retention bonuses in select metros, yet such incentives compress margins for carriers lacking comparable capital depth. Persistent labor tightness threatens service reliability at peak, creating a drag on the United States same day delivery industry unless automation meaningfully supplants human couriers[4]“Freight Transportation Topics,” Bureau of Transportation Statistics, bts.gov.
Segment Analysis
By End User Industry: E-Commerce Leads, Offline Retail Accelerates
E-commerce has entrenched itself with a 53.40% share of the United States same day delivery market in 2024, backed by integrated checkout-to-courier APIs that trigger immediate order releases. Bricks-and-mortar brands are clawing back ground; the wholesale and retail trade (offline) segment advances at a 6.12% CAGR between 2025-2030 as physical stores morph into hyperlocal warehouses capable of two-hour dispatch.
Health-care shipments, covering prescriptions and devices, secure premium pricing under cold-chain or chain-of-custody protocols. Manufacturing chains embed same-day delivery for critical parts, shielding assembly lines from costly downtime. Across segments, omnichannel orchestration determines share gains, underscoring why network depth and data integration remain foremost levers in the United States same day delivery industry.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Strength, International Opportunity
Domestic lanes captured 80.34% of United States same day delivery market share in 2024 driven by harmonized regulations and reliable transit links. Same-city and cross-metro corridors generate sufficient density for profitable ground schedules. International lanes, though smaller, log a 6.18% CAGR between 2025-2030, supported by US-Canada and US-Mexico day-definite services that exploit geographic proximity under simplified USMCA customs processes.
Long-haul international same-day remains air-reliant, suitable for legal documents and high-value electronics where urgency trumps tariff cost. Customs automation tools that pre-populate forms via blockchain or API feed are cutting dwell times, widening addressable volumes. This evolution positions international flows as a high-margin adjunct to domestic core volumes in the broader United States same day delivery market.
By Shipment Weight: Light Parcels Lead, Medium Weight Accelerates
Light parcels represented 76.24% of the United States same day delivery market size in 2024 as apparel, consumer electronics, and personal-care items dominate e-commerce carts. High stop density lowers unit cost and aligns with existing van payload limits. Medium parcels, however, chart the fastest 5.64% CAGR between 2025-2030 as manufacturers prioritize uptime by sourcing critical spares on demand.
The industrial pivot toward just-in-time production spreads same-day adoption beyond retail, raising average weight per stop and demanding mixed-fleet flexibility. Carriers with lift-gate vans or box trucks garner share, yet higher handling time per parcel pressures route economics. Balancing vehicle cube, weight restrictions, and margin calls will shape competitive playbooks within the United States same day delivery market.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Dominance Faces Air Competition
Road kept 51.02% revenue share of the United States same day delivery market in 2024 as dense urban routes and mature infrastructure yield favorable cost curves. This channel posted steady volume growth, though average service times risk slippage amid congestion. Air shipments, conversely, capture a premium niche of ultra-urgent loads and are growing at a 6.00% CAGR between 2025-2030, buoyed by financial and health-care use cases that value speed over price.
Air volume remains modest but strategic, offering enterprise shippers a contingency when ground networks face traffic or weather disruption. Regulatory hurdles, slot availability, and carbon targets limit rapid scaling, yet carriers with belly-hold capacity can flexibly monetize backhauls. Road operators counter by adopting dynamic routing and electric vans to maintain advantage. Combined, these trends illustrate a modal balance that supports continued expansion of the United States same day delivery market.
Geography Analysis
The United States same day delivery market skews toward three megaregions—California metropolitan clusters, the Northeast Corridor, and Texas urban hubs—which collectively held roughly 65% of 2024 market value. California leads on absolute value, aided by dense tech commerce and policy-driven electric-fleet mandates that reward early adopters. Los Angeles and San Francisco each recorded double-digit growth in order counts, reflecting both household consumption and enterprise tech procurement.
The Northeast Corridor stretching from Washington, D.C., through Boston—benefits from multimodal connectivity, enabling sub-4-hour intra-corridor deliveries that support financial services document flows and luxury retail. High real-estate costs encourage micro-fulfillment centers in vertical warehouses, keeping last-mile legs under eight miles even in densely built zones. Meanwhile, Texas metros such as Dallas-Fort Worth harness their central geography and vast warehousing stock to operate as continental relay nodes, funneling same-day capacity into both coasts.
Southeast and Mountain West regions reveal catch-up momentum as population inflows lift order density. Atlanta and Denver have passed the economic threshold where same-day routes attain route-density profitability, prompting carrier investment. Rural counties still face service gaps due to low stop density, but suburban sprawl and remote-work relocation increase addressable demand. The pattern signals a broadening footprint for the United States same day delivery market as demographic dispersion continues.
Competitive Landscape
The United States same day delivery market remains consolidated: UPS, FedEx, USPS, Amazon, and DHL anchor share positions through sprawling asset bases, while dozens of tech-enabled intermediaries contest regional niches. Urban lanes display higher concentration because only large fleets can amortize facility overhead across dense stop counts. Yet specialist startups leverage agile gig networks and software as a service to claim time-critical micro-segments such as pharmaceutical couriering or premium grocery drops.
Scale incumbents sustain edge via AI-driven routing, predictive load balancing, and proprietary telematics that squeeze minutes out of each stop; UPS trimmed average route miles by 10% using advanced analytics in 2024. Amazon cross-subsidizes last-mile costs through Prime memberships and uses its captive volume to pilot sidewalk robots and drone corridors, potentially resetting service-level expectations. USPS capitalizes on its universal service obligation, integrating with UPS Air under a USD 1.2 billion alliance to extend metropolitan same-day reach without extensive capex.
Niche challengers target vertical depth over geographic breadth—medical couriers embed compliance expertise, while construction-parts specialists deploy on-site lockers for zero-contact retrieval. M&A remains active as incumbents buy technology or footprint; UPS acquired a robotics-driven micro-fulfillment startup in 2025 to enhance sub-2-hour capability. Regulation on gig-worker classification and emission mandates may trigger further consolidation, favoring capital-rich fleets that can underwrite zero-emission vehicles and employee benefits. These dynamics collectively shape an evolving yet increasingly technology-weighted United States same day delivery market.
United States Same Day Delivery Industry Leaders
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FedEx
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United Parcel Service of America, Inc. (UPS)
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USPS
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DHL Group
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OnTrac
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2025: UPS committed USD 500 million to automated sortation hubs across 15 metros, targeting a 40% cut in processing time and enabling two-hour delivery windows.
- November 2024: Amazon debuted drone drops in Phoenix and Seattle, offering 30-minute delivery for sub-5-pound parcels along FAA-cleared corridors.
- October 2024: USPS and UPS signed a five-year, USD 1.2 billion air-cargo pact to bolster expedited and same-day offerings inside major U.S. metros.
- September 2024: DHL announced a USD 300 million electric-vehicle deployment, adding 2,000 zero-emission vans to Los Angeles, New York, and Miami routes ahead of local zero-emission delivery-zone deadlines.
United States Same Day Delivery Market Report Scope
Air, Road, Others are covered as segments by Mode Of Transport. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Domestic, International are covered as segments by Destination. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
Mode of Transport
| Air |
| Road |
| Others |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Destination
| Domestic |
| International |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Mode of Transport | Air |
| Road | |
| Others | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Destination | Domestic |
| International | |
| 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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