Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 26.27 Billion |
| Market Size (2030) | USD 35.83 Billion |
| Growth Rate (2025 - 2030) | 6.40% 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. |
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Vietnam Road Freight Transport Market Analysis by Mordor Intelligence
The Vietnam road freight transport market size is estimated at USD 26.27 billion in 2025, and is expected to reach USD 35.83 billion by 2030, at a CAGR of 6.40% during the forecast period (2025-2030). This expansion reflects sustained infrastructure spending, expanding industrial clusters, and accelerating digital adoption that collectively improve freight productivity and make shipment visibility the new industry baseline. Continued expressway build-out under the 5,000 km national target compresses north-south transit times, supports predictable lead times for exporters, and underpins competitive routing strategies. Digital freight platforms gain ground as shippers demand instantaneous rate discovery, real-time tracking, and dynamic route optimization, while electric truck pilots in major metro areas signal a gradual shift toward low-emission haulage. Competition remains fragmented even after the April 2025 DSV–DB Schenker merger because local specialists retain intimate route knowledge and strong relationships with Vietnamese manufacturers. Cross-border reforms at smart gate projects further widen the country’s gateway role between China and ASEAN trade lanes.
Key Report Takeaways
- By end user industry, manufacturing led with 35.51% of the Vietnam road freight transport market size in 2024, whereas wholesale and retail trade is set to expand at a 6.79% CAGR between 2025-2030.
- By destination, domestic freight accounted for 63.98% of the Vietnam road freight transport market share in 2024, while international flows exhibit the fastest 7.48% CAGR between 2025-2030.
- By truckload specification, full-truck-load services held 81.62% of 2024 shipments; less-than-truck-load is projected to grow at a 7.17% CAGR between 2025-2030.
- By containerization, non-containerized cargo dominated with an 86.56% share in 2024, and containerized freight is forecast to rise at a 6.53% CAGR between 2025-2030.
- By distance, long-haul routes captured 73.44% of shipments in 2024 and should progress at a 6.72% CAGR between 2025-2030 after expressway completion.
- By goods configuration, solid goods led with 66.04% share in 2024, while fluid goods are poised for a 6.77% CAGR between 2025-2030 on the back of petrochemical demand.
- By temperature control, non-temperature-controlled loads represented 94.66% of values in 2024; temperature-controlled freight is expected to accelerate at a 7.04% CAGR between 2025-2030.
Vietnam Road Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid expressway expansion to 5,000 km by 2030 | +1.1% | Nationwide; priority links Hanoi–Ho Chi Minh City and border corridors | Medium term (2-4 years) |
| Booming E-commerce and retail logistics | +0.8% | Tier-1 and Tier-2 cities | Short term (≤ 2 years) |
| Surge in near-shoring FDI for electronics supply chains | +0.7% | Bac Ninh, Thai Nguyen, and southern industrial parks | Medium term (2-4 years) |
| Manufacturing output surge and industrial-park build-out | +0.6% | National with focus on established corridors | Long term (≥ 4 years) |
| IFC-backed USD 2 billion fund for SME logistics digitalization | +0.5% | Nationwide | Long term (≥ 4 years) |
| Adoption of electric/alt-fuel trucks in municipal contracts | +0.4% | Hanoi, Ho Chi Minh City, Da Nang | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
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Rapid Expressway Expansion to 5,000 Km by 2030
Vietnam aims to complete 5,000 km of expressways by 2030, including the USD 25 billion, 1,811 km North–South backbone that will slash travel time between Hanoi and Ho Chi Minh City by up to 40%. Dedicated freight lanes alleviate congestion on national highways where 90% of trucks currently operate, allowing carriers to boost payload utilization and cut fuel costs. Manufacturers along the corridor gain flexibility to synchronize inbound component flows with production timetables, thereby reducing buffer inventories. New spur links to border checkpoints unlock trade potential with China and Laos, positioning Vietnam as a preferred overland bridge for ASEAN–China cargo. The improved physical network, when paired with tolling interoperability and 4G/5G coverage, supports real-time vehicle diagnostics and route optimization[1]“Driving the Supply Chain Revolution,” Vietnam Investment Review, vir.com.vn .
Booming E-Commerce and Retail Logistics
Online retail sales are projected to reach USD 57 billion in 2025, a figure that pushes carriers toward hub-and-spoke models and urban micro-fulfillment centers. Average shipment sizes fall even as delivery frequency rises, prompting fleet diversification into smaller vans and refrigerated last-mile vehicles for fresh grocery orders. ViettelPost expanded its cross-border parcel service and embedded API-driven tracking that automates customs clearance at major crossings. Investors fund warehouse robotics and AI-based route planners that reduce failed delivery attempts. Rural outreach strategies add second- and third-tier city spokes to networks, broadening addressable demand while challenging operators to maintain cost efficiency[2]“ASG Khởi Công Cụm Công Nghiệp CN2,” CaféF, cafef.vn.
Surge in Near-Shoring FDI for Electronics Supply Chains
Foreign direct investment reached USD 27.26 billion in the first ten months of 2024, with electronics majors enlarging plants in Bac Ninh and Thai Nguyen. High-value components such as semiconductors demand tight temperature and humidity control in transit, encouraging 24/7 cargo monitoring and secure high-cube vans. Industrial landlords like ASG Corporation are developing integrated logistics parks adjacent to airports to streamline multimodal transfers. Cross-border inbound flows from China supply printed circuit boards, while outbound finished devices move to global distribution hubs by air and sea, strengthening demand for road drayage that can meet strict airfreight cut-off times.
Manufacturing Output Surge and Industrial-Park Build-Out
Northern park occupancy of 81% and southern park occupancy of 92% corroborate continuous plant commissioning. Sumitomo’s 167-hectare development in Thanh Hoa fuels oversized cargo demand for machinery and steel structures. Co-located logistics zones enable cross-dock transit that trims handling times and optimizes multimodal hand-offs. Heavy-haul segments capitalize on predictable tonnage but face peak-season capacity constraints, driving rate spikes that incentivize asset pooling platforms among mid-sized carriers.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Persistently high logistics-to-GDP cost ratio | −0.9% | National; most severe in rural and border provinces | Long term (≥ 4 years) |
| Aging truck fleet >5 yrs for 90 % of vehicles | −0.7% | Nationwide, concentrated among SME carriers | Medium term (2-4 years) |
| Border-crossing dwell-time bottlenecks with China and Laos | −0.6% | Lao Cai, Lang Son, Quang Ninh | Short term (≤ 2 years) |
| Volatile fuel prices and refinery disruptions raise haulage rates | −0.5% | National with elevated impact on long-haul corridors | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Persistently High Logistics-to-GDP Cost Ratio
Vietnam’s 16.8% logistics cost-to-GDP ratio in 2024 significantly exceeds the 10–11% levels seen in developed economies. Fragmented transport modes, limited backhaul matching, and cumbersome customs processes inflate delivered-goods pricing and limit road freight adoption among SMEs. Compliance with ISO 22000 and HACCP adds paperwork and cold-chain hardware expenses without matching infrastructure support, especially in rural districts. Exporters incur additional buffer inventories to hedge against uncertain lead times, inflating working capital requirements and weakening competitiveness on price-sensitive agricultural goods[3]“Vietnam Post Logistics Khẳng Định Năng Lực,” CaféF, cafef.vn.
Aging Truck Fleet Exceeding Five Years for 90% of Vehicles
Older trucks burn 15–20% more fuel than modern Euro VI units, eroding margins just as carriers face retail clients demanding lower carbon footprints. Access to credit remains tight; local banks apply conservative loan-to-value ratios and high collateral requirements, making large-scale fleet renewal unviable for small operators. Mechanical breakdowns increase service unreliability and raise cargo damage risks, causing shippers of high-value electronics to favor carriers with newer fleets. Pilot programs by GOZO Express and VinFast demonstrate electric van viability for last-mile routes, yet battery range and charging-station density limit deployment to urban loops[4]“Chuẩn Hóa Chuỗi Cung Ứng Lạnh,” NLD, nld.com.vn.
Segment Analysis
By End User Industry: Manufacturing Reinforces Electronics Near-Shoring
Manufacturing represented 35.51% of 2024 shipments, underscoring how the Vietnam road freight transport market mirrors the nation’s pivot into electronics and machinery assembly clusters. Vietnam road freight transport market size for manufacturing-driven consignments is forecast to scale consistently as plant utilization rises and component sourcing deepens domestically. Wholesale and retail trade, propelled by e-commerce, is set to expand faster at a 6.79% CAGR between 2025-2030, stimulating high-frequency replenishment demand that stretches carrier networks into suburban fulfillment nodes. The segment dynamics reward operators that offer SKU-level visibility and temperature-controlled capacity to meet fresh grocery deliveries. Construction cargoes remain stable, anchored by road and port developments, whereas oil and gas projects mandate specialized tubular and rig-component transport that only a handful of heavy-haul carriers can furnish. As traceability mandates tighten in seafood and fruit exports, agriculture shippers invest in IoT-enabled pallets and insulated curtainsider trailers to pass stringent EU and Japanese inspections.
The Vietnam road freight transport market benefits from public-private partnerships that bundle warehouse property with trucking services, giving manufacturers a one-stop logistics solution. High-value electronics consignments rely on real-time geofencing and panic-button technology, elevating security costs but reducing pilferage rates. Multiple freight exchanges arise to match backhaul loads from central provinces, helping reduce empty-run kilometers and slightly easing the sector’s cost-to-GDP ratio. At the same time, manufacturers that previously leaned on sea freight for intra-ASEAN moves now deploy road to bridge port congestion or reach regional hubs faster, expanding addressable tonnage for domestic carriers.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Cross-Border Momentum Complements Domestic Dominance
Domestic traffic retained a 63.98% share in 2024 as north-south linear geography and two mega-cities anchor consumer demand clusters. Yet international consignments posting a 7.48% CAGR between 2025-2030 point to rising appetite for door-to-door road solutions that circumvent multiple port hand-offs. Customs digitalization at Hữu Nghị is designed to automate up to 50% of paperwork by 2030, cutting clearance time benchmarks and encouraging Vietnamese shippers to book cross-dock truck runs instead of multimodal routings. Vietnam road freight transport market size for cross-border loads is now tied to synchronized regulatory upgrades between Vietnamese and Chinese authorities who trial blockchain-based certificates of origin.
Domestically, the expressway roll-out compresses lead times, enabling retailers to consolidate inventory into fewer regional DCs while still honoring same-day delivery promises. For international moves, GEODIS stitched Vietnam into its Asia Road Network, offering bonded trucking to Singapore with hard transit commitments that challenge airfreight’s price premium. SMEs exporting fruit or furniture to Bangkok and Phnom Penh increasingly book temperature-regulated or blanket-wrapped truck services as rates undercut comparable ocean box-rates on short-haul corridors.
By Truckload Specification: LTL Scales Alongside E-Commerce
Full-truck-load (FTL) commands 81.62% share in 2024 thanks to bulk commodity flows and manufacturing contract carriage. However, fragmented order sizes inherent in online retail lift the LTL growth trajectory to 7.17% CAGR between 2025-2030. Vietnam road freight transport market share for FTL remains high but tech-enabled LTL pooling gains trust among shippers seeking cost savings without sacrificing delivery windows. Route-optimization algorithms cluster pickups around Hanoi and Ho Chi Minh City belts before dispatching consolidated line-haul trailers south- and northbound overnight.
FTL operators enjoy predictable volumes from electronics and apparel exporters that secure annual truck quotas, enabling asset-specific pricing that protects margins. LTL specialists differentiate via automated sortation hubs and configurable delivery slots that satisfy consumer-side expectations. As carriers adopt digital freight matching, previously under-utilized truck deck space is monetized, gradually improving industry load factors and CO₂ per-ton-kilometer metrics.
By Containerization: Non-Containerized Still Rules but Box Demand Rises
Non-containerized cargo represented 86.56% of 2024 revenue, driven by clinker, rice, steel coils, and live-haul agriculture requiring open-bed or curtain-sider solutions. Boxed cargo should grow at a 6.53% CAGR between 2025-2030 as more manufacturers tender sealed-door shipments to align with global anti-tamper protocols. Vietnam road freight transport market size for container drayage expands in parallel with seaport throughput that surpassed 191 million tons in 2024.
Inland container depots (ICDs) in Hai Phong and Binh Duong reduce drayage distances to factories, making road legs integral in end-to-end box movements. Carriers invest in twist-lock chassis and GPS-enabled reefer gensets to attract electronics and perishable shippers. Meanwhile, bulk hauliers retrofit side-loader capability for oversized steel pipes, preserving their dominance in non-containerized niches.
By Distance: Long-haul Retains Primacy While Short-Haul Modernizes
Long-haul corridors absorbed 73.44% of revenues in 2024, a share supported by Vietnam’s elongated geography and primary consumption nodes located 1,600 km apart. Expressway upgrades should shave fuel spending and raise average speeds to 80 km/h, helping long-haul revenue progress at a 6.72% CAGR between 2025-2030. Digital twin simulations guide new logistics-hub siting to balance one-tank fuel ranges with mandated driver rest breaks.
Short-haul traffic inside 200 km radii gains from e-commerce surges and same-day grocery deliveries but faces urban congestion limitations. Local authorities explore night-delivery incentives and exclusive freight lanes to relieve daytime traffic choke-points, gradually raising van productivity. Some carriers pivot to dual-mode fleets, operating long-haul tractors by night and switching cabs to urban box vans for morning drops, thus stretching asset utilization.
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By Goods Configuration: Solid goods dominate, fluid goods accelerate
Solid goods controlled 66.04% of revenue in 2024, reflecting electronics, garments, and FMCG output. Fluid cargo, largely petrochemicals and lubricants, is slated for a 6.77% CAGR between 2025-2030 as refineries in Nghi Son and Dung Quat elevate outbound tanker-truck requirements. Vietnam road freight transport market size for solid-goods consignments continues rising with cold-chain investment that keeps seafood at sub-zero core temperatures for EU transit benchmarks.
Fluid-cargo hauliers contend with ADR-equivalent safety code adoption, spurring demand for stainless-steel tankers fitted with pressure-relief valves and telematics for temperature monitoring. Solid-cargo operators diversify into high-cube curtain-sider trailers equipped with load bars to accommodate varying pallet heights—a must for blended FMCG and electronics loads.
By Temperature Control: Cold-chain steadily builds share
Non-temperature-controlled consignments grasped 94.66% of 2024 revenue, yet temperature-controlled volumes are forecast to grow 7.04% CAGR between 2025-2030. Vietnam road freight transport industry stakeholders channel capex toward multi-compartment reefers that handle dairy, pharma, and fresh produce in a single run. National cold-storage capacity is projected to exceed 1.7 million pallets by 2028, creating predictable backhauls for refrigerated trucks that historically returned empty.
Exporters of shrimp and dragon fruit implement end-to-end loggers to maintain −18 °C thresholds, punishing carriers whose fridge units fail mid-route. SATRA’s expansion of HACCP-certified warehouses adds cross-dock blast-freezing capacity that shaves several hours off pre-export staging, improving product shelf-life on foreign shelves.
Geography Analysis
Northern Vietnam anchors high-tech freight flows on the back of Samsung, Foxconn, and Canon investments. The Vietnam road freight transport market size serving Bac Ninh and Thai Nguyen plants expands as assembly lines add capacity, prompting carriers to locate secure yards near Noi Bai Airport for quick air-cargo transfers. Smart-gate digitalization at Hữu Nghị aims to eliminate redundant paper submissions and cut trans-China crossing times, thus boosting round-trip truck cycles. Inland clearances fast-tracked by blockchain trials promise predictable dwell times and encourage Japanese and Korean 3PLs to route ASEAN–China freight via northern corridors.
Southern Vietnam contributes the bulk of container volume thanks to Cat Lai and Cai Mep terminals. Ho Chi Minh City’s 92% industrial-park occupancy sustains high outbound density for food processors, garment exporters, and chemicals distributors. GEODIS’ Asia Road Network links the city with Singapore and Malaysia, offering sealed-door, bonded truck service that challenges feeder vessel schedules. Cold-chain operators here capitalize on seafood clusters in Mekong Delta, deploying multi-temp reefers for combined pangasius and fruit loads that head to port cold stores within 24 hours of harvest.
Central Vietnam emerges as an alternative distribution hub as Da Nang Port deepens drafts and Sumitomo’s 167-hectare industrial park in Thanh Hoa lures component suppliers. Vietnam Post Logistics plans seven regional centers, of which Nghe An and Đà Nẵng facilities plug gaps between northern and southern nodes. The Ta Lung–Thủy Khau crossing’s upgrade raises promise for agricultural cargo from Central Highlands to reach Chinese markets overland, though road grade and tunnel limitations still cap payloads. Carriers eye future expressway extensions to bolster axle-load ratings and cut switch-back climbs that hike maintenance costs.
Competitive Landscape
The market remains fragmented despite the April 2025 DSV–DB Schenker merger that forged the world’s largest freight forwarder with EUR 39 billion (USD 43.04 billion) in revenue. Local incumbents such as ViettelPost wield last-mile density and government contracts that fortify network stickiness. Aviation Logistics Corporation boasts a 300-vehicle fleet and 1,000,000 m² of warehouses, enabling it to offer combined air-road packages, a key differentiator for electronics exporters. The top five players collectively control less than 40% of market revenue, leaving room for niche specialists in chemical tanker, heavy-haul, and refrigerated transport.
Technology adoption splits operators into digital leaders and laggards. Approximately 68% of firms implemented transportation management systems, but only a fraction integrate IoT sensors with predictive maintenance analytics. Investment in API-ready platforms becomes critical as omnichannel retailers demand seamless data exchange. Meanwhile, fleet mini-leasing gains traction; small truckers pool purchasing power through cooperatives to acquire Euro VI tractors with lower fuel burn and higher reliability.
Cross-border competence increasingly defines success. Carriers able to navigate Chinese e-manifest systems and meet ASEAN Single Window protocols secure premium contracts from high-value shippers. Cold-chain remains ripe for consolidation, with SATRA’s network expansion signaling a first-mover push into national coverage. As tolling fees rise on new expressways, scale advantages in negotiating bulk E-Tag rates begin tilting unit economics toward larger fleets, setting up future M&A waves among medium-sized Vietnamese logistics companies.
Vietnam Road Freight Transport Industry Leaders
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A.P. Moller - Maersk
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Bee Logistics Corporation
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Indo Trans Logistics Corporation
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PetroVietnam Transportation Corporation (PVTrans)
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Saigon Newport Corporation
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Vietnam Post Logistics announced seven new logistics centers to lift revenue to VND 6,500 billion (USD 267.76 million) by 2027.
- March 2025: Bee Logistics Corporation launched a state-of-the-art distribution hub in Danang, enhancing regional road freight capabilities.
- December 2024: CMA CGM announced the launch of a groundbreaking zero-emissions inland transport solution in Vietnam. The project features a 100% electric barge powered by green electricity.
- November 2024: Maersk opened its first own-licensed bonded warehouse in northern Vietnam at SLP Park, Nam Dinh Vu IP, Hai Phong province, further enhancing its integrated customer service capabilities.
Vietnam Road Freight Transport Market Report Scope
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination. Full-Truck-Load (FTL), Less than-Truck-Load (LTL) are covered as segments by Truckload Specification. Containerized, Non-Containerized are covered as segments by Containerization. Long Haul, Short Haul are covered as segments by Distance. Fluid Goods, Solid Goods are covered as segments by Goods Configuration. Non-Temperature Controlled, Temperature Controlled are covered as segments by Temperature Control.
End User Industry
| Agriculture, Fishing, and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas, Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
Destination
| Domestic |
| International |
Truckload Specification
| Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) |
Containerization
| Containerized |
| Non-Containerized |
Distance
| Long Haul |
| Short Haul |
Goods Configuration
| Fluid Goods |
| Solid Goods |
Temperature Control
| Non-Temperature Controlled |
| Temperature Controlled |
| End User Industry | Agriculture, Fishing, and Forestry |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others | |
| Destination | Domestic |
| International | |
| Truckload Specification | Full-Truck-Load (FTL) |
| Less than-Truck-Load (LTL) | |
| Containerization | Containerized |
| Non-Containerized | |
| Distance | Long Haul |
| Short Haul | |
| Goods Configuration | Fluid Goods |
| Solid Goods | |
| Temperature Control | Non-Temperature Controlled |
| Temperature Controlled |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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