Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 26.27 Billion |
| Market Size (2026) | USD 27.94 Billion |
| Market Size (2031) | USD 38.07 Billion |
| Growth Rate (2026 - 2031) | 6.38% 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. | |
Vietnam Road Freight Transport Market Analysis by Mordor Intelligence
The Vietnam road freight transport market size is expected to grow from USD 26.27 billion in 2025 to USD 27.94 billion in 2026 and is forecast to reach USD 38.07 billion by 2031 at 6.38% CAGR over 2026-2031.
Manufacturing dominance, chronic driver shortages, and structural back-haul imbalances define competitive outcomes more than pure freight‐volume expansion. Temperature-controlled freight is the clear growth outlier, propelled by pharmaceutical mandates and fresh-produce export protocols that reward carriers able to guarantee 2 °C-8 °C integrity. Fragmentation remains the leading structural headwind: 84% of trucks belong to owner-operators with fleets under ten vehicles, limiting the capital scale needed to renew assets to Euro-5 standards or deploy load-matching platforms. Meanwhile, nationwide RFID tolling, inland container-depot build-outs, and digital carnets on the China and Laos borders lift asset utilization and shorten transit times, tilting margin expansion toward carriers that digitize operations rather than those competing on freight rates alone.
Key Report Takeaways
- By end-user industry, manufacturing held 36.30% of Vietnam road freight transport market share in 2025, while wholesale & retail trade is projected to advance at a 7.10% CAGR through 2031.
- By destination, domestic shipments captured 68.48% of the Vietnam road freight transport market share in 2025; international freight is forecast to expand at a 7.64% CAGR to 2031.
- By truckload specification, full-truck-load commanded 81.30% share of the Vietnam road freight transport market size in 2025, whereas less-than-truck-load is expected to record the highest CAGR at 6.99% between 2026-2031.
- By containerization, non-containerized movements accounted for 84.01% of the Vietnam road freight transport market size in 2025, while containerized cargo is projected to post the fastest growth at 7.26% CAGR through 2031.
- By distance band, long-haul trips represented 71.50% of Vietnam road freight transport market share in 2025 and are poised to rise at a 6.75% CAGR over 2026-2031.
- By goods configuration, solid goods held 69.11% share of the Vietnam road freight transport market size in 2025; fluid goods are forecast to grow the quickest, registering a 6.51% CAGR to 2031.
- By temperature control, non-temperature-controlled freight dominated with a 95.09% share in 2025, yet temperature-controlled consignments are expected to accelerate at a 10.11% CAGR up to 2031.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.
Vietnam Road Freight Transport Market Trends and Insights
Drivers Impact Analysis*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fleet renewal accelerated by 2025 Euro-5 emission mandate | +0.9% | National, urban enforcement centers | Short term (≤ 2 years) |
| Cold-chain boom for pharma & fresh produce distribution | +0.7% | Hanoi, HCMC, Da Nang corridors | Medium term (2-4 years) |
| Rapid shift of SMEs toward 3PL outsourcing to cut compliance costs | +0.6% | National, manufacturing SMEs | Medium term (2-4 years) |
| Build-out of dedicated logistics hubs along the North-South corridor | +0.5% | Expressway nodes, industrial parks | Long term (≥ 4 years) |
| Nationwide RFID electronic toll collection reduces idle time | +0.4% | Highway and expressway network | Short term (≤ 2 years) |
| ASEAN e-TIR digital carnet pilot streamlining cross-border customs | +0.3% | China, Laos, and Cambodia border | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Fleet Renewal Accelerated by 2025 Euro-5 Emission Mandate
Vietnam enforces Euro-5 standards for new trucks from 2025, compelling retirement of pre-2015 diesel units that still constitute over 90% of long-haul capacity. Retrofit costs of USD 8,000-12,000 a vehicle and informal borrowing rates above 12% constrain owner-operators. Larger fleets leverage bank loans and operating leases to order compliant assets, widening their cost advantage. GOZO Express’s 2,000-unit VinFast electric‐van order in 2024 illustrates urban-delivery compliance pathways, even though charging gaps limit e-truck adoption on 500 km hauls. Fleet renewal, therefore, rewards scale, pushes consolidation, and adds near-term capital stress that influences pricing across the Vietnam road freight transport market.
Cold-Chain Boom for Pharma & Fresh Produce Distribution
Drug imports topped USD 7 billion in 2024, with biologics requiring tight 2 °C-8 °C control. SATRA’s HACCP-certified warehouses, rising 8% yearly through 2030, underscore the push for certified cold infrastructure. Export-quality fruit shipped to Japan and the EU must maintain sub-4 °C profiles, and one temperature spike triggers rejection and financial loss. Shippers pay 40-60% premiums for reliable reefer capacity, allowing compliant operators to escape margin-squeezing spot markets. Urban e-grocery adds last-mile complexity, demanding GPS‐logged, multi-zone micro-reefers that few small carriers can finance[1] Editorial Desk, “Chuẩn hóa Chuỗi Cung Ứng Lạnh,” NLD Online, nld.com.vn.
Rapid Shift of SMEs Toward 3PL Outsourcing to Cut Compliance Costs
Euro-5 mandates, HACCP audits, and digital carnets overwhelm SMEs that lack regulatory staff. Vietnam Post Logistics plans seven new hubs in Vinh Phuc, Hung Yen, and Binh Duong to capture this outsourcing wave. Integrated 3PLs consolidate loads, slicing 15-20% from logistics bills while guaranteeing documentation accuracy. Electronics factories in Bac Ninh adopt these services for just-in-time workflows, deepening entry barriers for small, asset-light brokers.
Build-Out of Dedicated Logistics Hubs Along the North-South Corridor
ASG Corporation’s 50.59-hectare CN2 park near Noi Bai Airport illustrates new hub prototypes combining customs, cross-dock, and warehouse on expressway junctions. With land 50-60% cheaper than city plots, hubs slash drayage time 30-40%. Digital-twin models optimize node placement for back-haul capture, signaling a network redesign away from factory-to-store point direct runs toward multi-client consolidation centers across the Vietnam road freight transport market.
Restraints Impact Analysis*
| Restraint | (~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Chronic long-haul driver shortage amid aging workforce | −0.8% | National, North-South routes | Long term (≥ 4 years) |
| High empty-return ratio on northbound lanes eroding margins | −0.6% | North-South corridor | Medium term (2-4 years) |
| Highly fragmented carrier base limiting load consolidation | −0.5% | National, LTL focus | Long term (≥ 4 years) |
| Port-area congestion surcharges at Cat Lai & Hai Phong | −0.4% | Southern & Northern gateways | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Chronic Long-Haul Driver Shortage Amid Aging Workforce
Average driver age reaches 48, and less than 15% are under 35, shrinking the recruitment pipeline. Long runs demand 3-4 days away from home, yet carriers cannot fully offset higher wage demands amid tight freight margins. Hour limits cut productivity, so fleets must hire more drivers per truck. Large carriers retain staff through benefits programs, but small operators often rely on family drivers, magnifying capacity shortages during harvest peaks.
High Empty-Return Ratio on Northbound Lanes Eroding Margins
Southbound loads operate at 85-90 % utilization, yet trucks return north with only 40-45 % loads, forcing discounted back-hauls or deadheading. Spot platforms lack penetration, so the imbalance persists. Seasonal agriculture spikes intensify the gap, making northbound legs chronic loss centers that compress nationwide profitability in the Vietnam road freight transport market[2]Logistics Analysts, “Top Logistics Companies in Vietnam 2024,” ALS, als.com.vn .
*Our updated forecasts treat driver/restraint impacts as directional, not additive. The revised impact forecasts reflect baseline growth, mix effects, and variable interactions.
Segment Analysis
By End User Industry: Manufacturing Reinforces Electronics Near-Shoring
Manufacturing held the largest 36.30% slice of the Vietnam road freight transport market share in 2025, anchored by electronics and auto-parts clusters in Bac Ninh and Thai Nguyen. Wholesale & retail trade, propelled by e-commerce marketplaces, is projected to outpace all other verticals at a 7.10% CAGR. Predictable volumes enable dedicated full-truck-load contracts, though any production halt instantly removes freight demand and exposes carriers to idle-asset risk. Fragmented parcel flows support the Vietnam road freight transport market size for less-than-truck-load services, driving network densification around urban consolidation hubs.
The construction segment fluctuates with infrastructure stimulus, complicating capacity planning. Oil & gas and mining require specialized heavy-haul assets, offering niche premiums yet low frequency. Agriculture seeks traceability and cold-chain compliance, rewriting service benchmarks: reefer trucks must now document real-time temperature data to remain on exporter vendor lists. Diversified “others” such as healthcare and consumer staples offer steady volumes that buffer macro cycles but demand technology-enabled visibility to meet distributor standards.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Digital Carnets Unlock Cross-Border Potential
Domestic hauls dominated 68.48% of the Vietnam road freight transport market share in 2025, leveraging a linear geography that channels flows between Hanoi, Da Nang, and Ho Chi Minh City. International tonnage, though smaller, is forecast to grow 7.64% annually as e-TIR carnets slash border clearance to under 12 hours. Expressway additions cut Hanoi-HCMC transit to under 24 hours, unlocking next-day delivery and compressing inventory pipelines. Carriers equipped with compliant IT systems and bonded yards capture electronics and fresh-produce export surges into southern China and Thailand, enlarging the Vietnam road freight transport market size for cross-border lanes.
Persistent imbalance on return legs, however, reduces lane yields. Harmonization delays in Laos and Cambodia restrain broader ASEAN uptake, and digital carnet IT costs deter micro-carriers. Nevertheless, early adopters like GEODIS leverage Asia Road Network corridors to bundle road, sea, and air packages that shorten overall door-to-door cycles for high-tech shippers.
By Truckload Specification: E-Commerce Fragmenting Shipment Profiles
Full-truck-load preserved an 81.30% majority share in 2025 because industrial corridors still generate predictable palletized quantities that fill entire rigs. Cost efficiency and cargo-security needs keep FTL terms attractive for exporters. Yet less-than-truck-load growth at 6.99% CAGR signals the rising influence of online retail and dispersed SME consignors.
LTL networks need regional sort centers and route-optimization software, raising entry barriers that entrepreneurial digital platforms try to breach. ViettelPost scales cross-border parcel routes by consolidating Vietnamese SME orders into trunk LTL line-hauls, enlarging its foothold within the Vietnam road freight transport market.
By Containerization: Intermodal Standards Drive Premium Uptake
Non-containerized freight held 84.01% of the Vietnam road freight transport market size in 2025 on the back of bulk commodities and construction inputs. Still, containerized shipments grow 7.26% CAGR as ISO boxes provide intermodal flexibility and security for high-value electronics and pharmaceuticals.
Airports such as Noi Bai process 300,000 t annually, spurring specialized drayage for ULD containers between air cargo docks and inland tech parks. Sealed containers also speed customs, making them the preferred option for time-critical inter-ASEAN moves despite higher chassis rents.
By Distance: Linear Geography Sustains Long-Haul Predominance
Long-haul legs exceeding 500 km contributed 71.5% to the Vietnam road freight transport market share during 2025 and are expected to grow at a 6.75% CAGR, mirroring the elongated north-south topography. Completion of the 5,000 km expressway matrix by 2030 will lift average speeds and reduce diesel burn, yet driver shortages and wage premiums threaten sustained capacity.
Digital-twin hub modeling introduces mid-corridor consolidation sites that pool northbound back-hauls, gradually smoothing the chronic load imbalance that trims the Vietnam road freight transport market size and profitability.
Note: Segment shares of all individual segments available upon report purchase
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By Goods Configuration: Fluid Freight Growth Trails Solid Dominance
Solid goods-electronics, garments, and machinery controlled 69.11% of the 2025 value, while fluid goods are expected to grow at a 6.51% CAGR. Investment in bonded tech parks around Hanoi and HCMC cements those flows. Fluid cargo, mainly petroleum and chemicals, expands 6.51% yearly, leveraged by refinery upgrades and industrial chemical consumption.
Specialized tankers and ADR safety rules deter new entrants, creating a high-margin enclave within an otherwise price-competitive Vietnam road freight transport market.
Note: Segment shares of all individual segments available upon report purchase
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By Temperature Control: Pharma Rules Premium Lanes
Non-temperature-controlled shipments sustained a 95.09% share in 2025, but temperature-controlled controlled will rise fastest at 10.11% CAGR on vaccine imports and fruit exports. National cold storage, slated to top 1.7 million pallet positions by 2028, catalyzes demand for multi-zone reefers equipped with IoT thermographs.
Carriers investing early secure long-term contracts, locking in above-average yields and reinforcing stratification across the Vietnam road freight transport market.
Geography Analysis
Northern Vietnam relies on electronics hubs in Bac Ninh and Thai Nguyen, generating high-value FTL flows that demand GPS security seals. ASG’s CN2 hub near Noi Bai Airport consolidates cross-dock volumes, while the Huu Nghị smart-gate border slices China transit times, attracting agricultural exporters seeking freshness premiums. Empty northbound ratios, however, average 40-45%, eroding lane profitability despite high southbound utilization.
Southern Vietnam anchors container-drayage demand: Cat Lai and Hiep Phuoc ports processed more than 191 million t of box cargo in the first ten months of 2024, and industrial-zone occupancy exceeds 92%. Peak congestion imposes USD 150-200 surcharges per container, steering shippers to inland depots and night-time slots. The region serves as a springboard into ASEAN, with GEODIS integrating Vietnam into its Singapore-Malaysia-China corridors, enhancing the Vietnam road freight transport market size for cross-border e-commerce[3] Corporate Release, “GEODIS Makes Strategic Investments in Asia,” GEODIS, geodis.com .
Central Vietnam emerges as a strategic mid-corridor. Da Nang’s port expansion, plus Sumitomo’s 167-hectare Thanh Hoa park, creates new volumes. Vietnam Post Logistics positions hubs in Nghe An and Da Nang to harvest mid-stream back-hauls, heightening fleet utilization. Coffee and cashew harvests inject seasonal spikes, so carriers able to reposition equipment swiftly capture outsized yields.
Competitive Landscape
Fragmentation sets the competitive tone: over 15,000 carriers hold 84 % of capacity in fleets under ten trucks. Global heavyweights are scaling: DSV’s USD 14.3 billion DB Schenker buy doubled multimodal reach, enabling one-stop solutions that local SMEs cannot match. Domestic champions fight back: Viettel Post leverages postal infrastructure for nationwide LTL, while Aviation Logistics Corporation fields 300 vehicles and 1 million m² warehouses, coupling road and air cargo.
Technology adoption is the key wedge. About 68% of logistics firms invest in TMS or WMS, but depth varies: integrated 3PLs interlink IoT sensors, RFID toll data, and customs APIs, whereas micro-fleets still dispatch via phone. Euro-5 mandates and cold-chain audits escalate fixed-cost hurdles, accelerating exit or merger of under-capitalized operators.
Specialized segments, temperature-controlled, oversized heavy-haul support premium rates, and attract joint ventures between foreign integrators and Vietnamese license holders, redistributing value across the Vietnam road freight transport market[4]Press Office, “DSV Completes Acquisition of DB Schenker,” DSV, dsv.com .
Vietnam Road Freight Transport Industry Leaders
A.P. Moller - Maersk
Bee Logistics Corporation
Indo Trans Logistics Corporation
PetroVietnam Transportation Corporation (PVTrans)
Saigon Newport Corporation
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2026: GEODIS began real-time IoT security upgrades across its Vietnam road network nodes.
- January 2026: GEODIS rolled out a pilot for the first cross-border trucking service in Southeast Asia powered by renewable diesel fuel.
- May 2025: Vietnam Post Logistics unveiled seven new regional logistics centers aimed at SME 3PL outsourcing.
- April 2025: DSV closed its USD 14.3 billion DB Schenker acquisition, creating the world’s largest integrated logistics group.
Vietnam Road Freight Transport Market Report Scope
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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