Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 243.08 Billion |
| Market Size (2026) | USD 260.17 Billion |
| Market Size (2031) | USD 364.25 Billion |
| Growth Rate (2026 - 2031) | 6.96% CAGR |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image 漏 黑料不打烊. Reuse requires attribution under CC BY 4.0. | |
Asia-Pacific Courier, Express, And Parcel (CEP) Market Analysis by 黑料不打烊
The Asia-Pacific Courier, Express, and Parcel market size is expected to grow from USD 243.08 billion in 2025 to USD 260.17 billion in 2026 and is forecast to reach USD 364.25 billion by 2031 at a 6.96% CAGR over 2026-2031.
Urban consumption patterns are shifting toward sub-two-hour fulfillment, and instant-commerce platforms now shape network design across the region鈥檚 tier-1 cities. Hyperlocal nano-depots positioned within 3 kilometers of demand clusters compress last-mile distances, delivering density advantages that counterbalance rising labor costs. Harmonized tariff schedules introduced under RCEP and CPTPP have cut cross-border documentation by 35%, improving customs clearance times from 48 hours to 6 hours for low-value parcels. Meanwhile, electric vehicle fleets and automated sorting hubs reduce per-kilometer delivery costs by 22% in pilot corridors, signaling that technology adoption rather than fleet size will define future competitive positioning.
Key Report Takeaways
- By destination, domestic parcels led with 65.3% revenue share in 2025, while international flows are projected to expand at an 8.01% CAGR through 2031.
- By speed of delivery, non-express services accounted for 59.57% share of the Asia-Pacific courier, express, and parcel market size in 2025, and express delivery is advancing at an 8.22% CAGR to 2031.
- By business model, B2C shipments held 53.45% of the Asia-Pacific courier, express, and parcel market share in 2025, whereas C2C logistics is forecast to grow at an 8.4% CAGR over 2026-2031.
- By shipment weight, light-weight parcels commanded a 60.42% share in 2025, and heavy-weight parcels are projected to increase at an 8.53% CAGR through 2031.
- By mode of transport, road services led with a 50.02% market share in 2025, while air cargo is positioned for a 7.62% CAGR during 2026-2031.
- By end-user, e-commerce generated 35.12% of 2025 demand, and healthcare logistics is on course for an 8.82% CAGR to 2031.
- By country, China retained a 54.44% market share in 2025, whereas India is projected to deliver a 10.58% CAGR between 2026-2031.
Note: Market size and forecast figures in this report are generated using 黑料不打烊鈥檚 proprietary estimation framework, updated with the latest available data and insights as of January 2026.
Asia-Pacific Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Proliferation of instant-commerce platforms driving parcel intensity | +2.3% | China, India, Indonesia urban centers | Short term (鈮� 2 years) |
| Harmonised tariff codes under next-gen regional trade pacts easing cross-border flows | +1.6% | RCEP and CPTPP member states | Medium term (2-4 years) |
| State-sponsored multimodal corridors slashing hinterland transit times | +1.2% | China Belt and Road, India Gati Shakti, ASEAN connectivity zones | Long term (鈮� 4 years) |
| Rising demand for temperature-controlled logistics for biologics and nutraceuticals | +0.9% | Japan, Australia, Singapore healthcare hubs | Medium term (2-4 years) |
| AI-powered dispatch and load balancing boosting network utilisation | +0.7% | Technology-leading markets: China, Japan, South Korea | Long term (鈮� 4 years) |
| Expansion of hyperlocal nano-depots enabling sub-two-hour deliveries | +0.5% | Metropolitan areas across APAC | Short term (鈮� 2 years) |
| Source: 黑料不打烊 | |||
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Proliferation of Instant-Commerce Platforms Driving Parcel Intensity
Ten-minute delivery promises are encouraging operators to deploy inventory inside 2-3 kilometer radii of dense consumption zones rather than in peripheral mega-hubs. India鈥檚 quick-commerce players processed 1.2 billion orders in 2025, equal to 18% of total e-commerce volumes, only three years after launch. In Chinese tier-1 cities, household parcel intensity climbed to 4.7 shipments per month in 2025, doubling 2020 levels and pushing last-mile costs down to USD 0.40 per parcel on the busiest corridors. Nano-depots of 500-1,000 square feet offer the proximity needed for 15-minute windows but inflate fixed costs, placing profitability at risk for newcomers still reliant on discounts. Despite negative 8% contribution margins, platforms continue subsidizing delivery to secure mindshare, forcing traditional carriers to develop equivalent rapid-fulfillment formats. The trend raises the baseline for urban service expectations across the Asia-Pacific Courier, Express, and Parcel market[1]鈥淭ariff Harmonization Progress Under RCEP,鈥� ASEAN Secretariat, asean.org .
Harmonized Tariff Codes Under Next-Gen Regional Trade Pacts Easing Cross-Border Flows
RCEP and CPTPP customs provisions cut document requirements for parcels valued under USD 200, reducing clearance times to 6 hours and allowing 92% of low-value shipments to pass without inspection. Chinese sellers shipping into Southeast Asia realized average cost savings of 28% in 2025 as simplified duty calculations took hold. The ASEAN Single Window processed 45 million declarations in 2025, almost quadrupling 2023 throughput. Although Indonesia and the Philippines lag in technical integration, more uniform tariffs and digitized forms are catalyzing cross-border B2C growth that outpaces domestic segments. Express operators with integrated brokerage systems now offer guaranteed two-day delivery between Shanghai and Kuala Lumpur, down from four days in 2023, widening the addressable base for small and medium exporters[2]鈥淎sia-Pacific Trade Facilitation Measures 2025,鈥� World Customs Organization, wcoomd.org .
State-Sponsored Multimodal Corridors Slashing Hinterland Transit Times
Infrastructure mega-projects are redrawing freight geography. China鈥檚 Belt and Road Initiative completed 12,000 kilometers of dedicated freight rail in 2025, trimming inland transit times by 40% compared with conventional networks. India鈥檚 Gati Shakti plan coordinated 16 ministries to cut average inter-state freight journeys from 5.2 days to 3.8 days. ASEAN economic corridors reduced Bangkok-to-Danang trucking time from 72 hours to 48 hours through harmonized border checks. Lower transport costs and faster routes improve service reliability for private carriers and raise entry barriers for firms unable to leverage multimodal assets. Digital freight exchanges now layer real-time tracking over these corridors, pushing empty backhaul rates down to 22% and closing the utilization gap between global integrators and regional specialists.
Rising Demand for Temperature-Controlled Logistics for Biologics and Nutraceuticals
Biologic therapies and probiotic supplements require continuous temperature monitoring within 卤2 掳C thresholds, creating a specialized logistics niche where premium pricing averages 3.2 times ambient delivery charges. Japan鈥檚 mandatory IoT tracking for biologic freight cut temperature-excursion incidents by 67% between 2023 and 2025. The region鈥檚 biologics market reached USD 89 billion in 2025, with 78% of products needing cold-chain transport. Nutraceutical e-commerce generated 340 million chilled shipments in 2025, almost doubling 2023 volumes. Operators are investing about USD 2.5 million per temperature-controlled hub, yet capacity utilization is only 62%, underscoring the challenge of aligning capital outlays with fluctuating demand. Carriers possessing certified cold-chain fleets are positioned to capture share as healthcare spending climbs.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Overtime ceilings and ageing workforce inflating last-mile labour costs | -1.3% | Japan, South Korea, Singapore, urban China | Short term (鈮� 2 years) |
| Volatile diesel and jet-fuel pricing clouding cost forecasts | -0.9% | International routes, air-dependent markets | Medium term (2-4 years) |
| Non-standard addressing in secondary cities causing first-delivery failures | -0.6% | India, Indonesia, Vietnam tier-2/3 cities | Medium term (2-4 years) |
| Security tensions at regional choke points disrupting preferred routes | -0.4% | South China Sea, Malacca Strait transit routes | Long term (鈮� 4 years) |
| Source: 黑料不打烊 | |||
Overtime Ceilings and Ageing Workforce Inflating Last-Mile Labor Costs
Weekly hour limits and demographic ageing are squeezing driver availability. Singapore capped working hours at 44 per week in 2024, forcing an 18% headcount expansion to maintain service levels and adding USD 0.85 per parcel in labor costs. In Japan, 42% of drivers were older than 50 years in 2025, up from 28% in 2020. Annual wage inflation for logistics workers in urban China reached 14% over 2024-2025 as gig platforms lured talent away with flexible schedules. Automation and autonomous delivery pilots provide partial relief, yet regulatory approvals limit deployments to test zones, delaying wide-scale cost offsets until after 2028. Elevated labor expenses disproportionally hurt operators lacking capital for robotics or algorithmic routing tools[3]鈥淩oad Transport Workforce Regulations,鈥� Ministry of Manpower, mom.gov.sg .
Volatile Diesel and Jet-Fuel Pricing Clouding Cost Forecasts
Fuel represents 28-35% of express carriers鈥� cost base. Asian diesel prices fluctuated within a USD 0.65 per liter band in 2025, roughly double historical volatility, while aviation turbine fuel rose 24% year-on-year to USD 0.92 per liter. Mid-tier operators negotiating fixed-price contracts faced 2-4 percentage-point margin compression when surges could not be passed through to customers. Hedge usage remains low, with only 35% of regional CEP providers holding active positions versus 78% among global integrators. Electric delivery vehicles offer longer-term cost stability, but range limits confine fleets to short urban routes that account for just 40% of delivery kilometers. Until alternative propulsion scales, variable fuel pricing will continue to challenge profitability planning[4]鈥淎sia Fuel Market Volatility 2025,鈥� International Energy Agency, iea.org.
Segment Analysis
By End-User Industry: Healthcare Logistics Emerges as Velocity Leader
The healthcare segment is forecast to grow at an 8.82% CAGR through 2031, outpacing total market momentum despite e-commerce鈥檚 35.12% lead in 2025 volume contribution. Aging populations in Japan and South Korea and expanding pharmaceutical access in India and Indonesia lift biologics demand. Temperature-controlled consignments expanded 24% annually from 2023-2025, necessitating specialized packaging, active cooling systems, and meticulous chain-of-custody protocols.
Manufacturing holds an 18% share through just-in-time parts movement, while BFSI, wholesale, and primary industries add niche requirements, from secure documents to perishable commodities. Omnichannel retailers blend ship-from-store and warehouse fulfillment, driving flexible route planning. The Asia-Pacific Courier, Express, and Parcel market continues to innovate with sensor-equipped containers and blockchain tracking to address stringent healthcare regulations, setting new performance benchmarks that spill over into other verticals.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Momentum Builds on Trade Facilitation
International parcel flows expanded at an 8.01% CAGR between 2026-2031, narrowing the gap with domestic traffic that still held a commanding 65.3% share in the Asia-Pacific courier, express, parcel market size in 2025. Tariff harmonization under RCEP sliced customs processing times by 42% for express parcels valued below USD 200, lifting on-time performance for Shanghai-to-Bangkok routes to 96%. Domestic networks benefit from hyperlocal density created by instant-commerce, keeping unit costs low, yet negative contribution margins persist where platforms subsidize deliveries. Cross-border costs dropped 18% from 2023-2025 after consolidated clearance protocols removed detention delays, enticing small exporters throughout the region.
Traffic growth in Southeast Asia underscores how simplified documentation encourages market entry for Chinese and Korean sellers. The improvement elevates yield for carriers that combine bulk airlift with regional trucking, while service variability remains problematic on archipelagic routes such as Indonesia-Philippines, where infrastructure lags. Domestic players are pivoting toward premium urban services to defend share, but face margin pressure as pricing wars intensify. As customs digitalization matures, the Asia-Pacific Courier, Express, and Parcel market should see international parcel volumes approach domestic growth rates, reshaping network investments toward more bonded facilities and dedicated cross-border lanes.
By Speed of Delivery: Express Services Secure Premium Pricing
Express parcels grew at an 8.22% CAGR in the forecast window, gaining ground on non-express consignments that still represented 59.57% of 2025 volumes. Consumers paid 2.8 times higher fees for guaranteed windows, reflecting a readiness to trade price for certainty in metropolitan zones. AI-driven dispatch lifted first-delivery success to 94% for leading operators, tightening cost control even as overtime restrictions added wage pressure. Non-express remains volume heavy through B2B shipments and rural deliveries, but slower growth underscores commoditization.
Same-day and next-day tiers prompt complex facility configurations that separate premium from standard flows, raising handling expenses by up to 15%. Nonetheless, electrified fleets reduced variable costs, keeping margin differentials favorable. The Asia-Pacific Courier, Express, and Parcel market size attached to express products rose disproportionately as retailers launched paid membership programs bundling free express shipping. Over the medium term, density improvements could let express overtakes non-express in value contribution even if volume leadership stays with economy services.
By Shipment Weight: Heavy Parcels Rebound amid Supply-Chain Regionalization
Light parcels maintained a 60.42% share in the Asia-Pacific courier, express, parcel market size in 2025, thanks to frequent e-commerce orders under 3 kilograms, but heavy parcels are projected to climb at an 8.53% CAGR as manufacturers regionalize supply chains. Diversified production across ASEAN encourages intra-regional movement of machinery and components weighing above 20 kilograms. Consolidated heavy loads yield 45% lower per-kilogram costs than comparable light parcels shipped individually, driving adoption among industrial clients.
Facility constraints remain: many automated sortation lines built for shoe-box-sized packages cannot process irregular loads, requiring parallel networks and inflating fixed assets by 28%. Still, carriers eye margin upside from heavier freight that commands stable contractual pricing. Instant-commerce reinforces the light-parcel bias in urban corridors, but macro supply-chain trends ensure balanced growth across weight classes, supporting the Asia-Pacific Courier, Express, and Parcel market share diversification strategy.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Air Cargo Captures Time-Sensitive Spend
Road hauled 50.02% of parcel volumes in 2025, anchored by last-mile dominance and relative cost efficiency at USD 0.18 per kilometer. Air cargo, while pricier at USD 1.40 per kilometer, is expected to post a 7.62% CAGR on surging cross-border express demand and medical cold-chain requirements. Dedicated freighter capacity on Asian trunk lanes expanded 16% in 2025, and carriers secure earlier loading windows to protect on-time metrics. Carbon pressures are rising, however, as aviation emits 12-times the CO鈧� per ton-kilometer of electric trucks, placing airlines under scrutiny.
Rail and waterways remain niche at 8% share but serve bulk and heavy flows where cost outweighs speed. The Asia-Pacific Courier, Express, and Parcel market increasingly mixes modes; 68% of international parcels used at least two transport types in 2025, up from 42% in 2020. Seamless data hand-offs between modes enhance visibility and allow real-time rerouting during disruptions, contributing to higher customer satisfaction.
By Business Model: B2C Rules, C2C Emerges
B2C parcels comprised 53.45% of market revenue in 2025, yet C2C volumes recorded the highest trajectory at an 8.4% CAGR on rising social-commerce adoption. Secondhand marketplaces and live-stream sales in Indonesia, Thailand, and China allowed individuals to ship directly without retail intermediaries, widening service demand for flexible pickup and delivery. Fragmentation raises per-parcel cost to USD 2.60, versus USD 1.80 for consolidated B2C cartons, but gig couriers partially offset the disadvantage through on-demand capacity.
Businesses leverage predictable flows to lock in favorable tariffs, whereas influencer-driven sales behave like flash peaks, stressing network agility. The Asia-Pacific Courier, Express, and Parcel industry has responded with mobile apps that embed rate calculators and digital labels, reducing friction for casual shippers. While B2B continues to supply stable industrial demand, inventory rationalization cut shipment frequency. In aggregate, peer-to-peer growth diversifies revenue pools and encourages carriers to refine customer interfaces.
Geography Analysis
China鈥檚 54.44% share in 2025 illustrates how an integrated digital ecosystem spanning payments, e-commerce, and logistics boosts network efficiency. Tier-1 cities processed 4.2 billion instant-commerce orders in 2025, with average delivery times of 28 minutes. Government-backed freight rail corridors and robotic sorters cut operating costs by 19% from 2023-2025, yet order growth in mature urban clusters slowed to 6%, hinting at approaching saturation. Rural expansion is the next frontier, but low density challenges margin discipline.
India recorded the region鈥檚 fastest trajectory with a projected 10.58% CAGR to 2031. The Unified Payments Interface logged 11.6 billion monthly transactions in 2025, making cash on delivery less necessary and enlarging the online shopper base. Gati Shakti infrastructure trimmed cross-state transit times by 27%, and vernacular e-commerce platforms handled 680 million orders in 2025, unlocking demand in tier-2 and tier-3 cities. Connectivity investments and policy reforms are tilting parcel gravity away from coastal metros toward interior consumption zones.
Japan and Australia display mature, high-service expectations, stimulating robotics adoption to offset labor shortages. Japan deployed 2,400 autonomous delivery robots in controlled areas during 2025, while Australia鈥檚 express lanes emphasize reliability to serve time-critical mining and healthcare consignments. Southeast Asia鈥檚 youthful demographics fuel double-digit volume growth; Indonesia鈥檚 parcels grew 32% in 2025 to 2.8 billion units, buttressed by ASEAN connectivity projects that reduced cross-border transit times by 35%. Singapore leverages its logistics and financial hub status for premium freight, and Malaysia functions as a distribution springboard to ASEAN markets. Pakistan and the Philippines remain emerging plays where addressing gaps and security concerns temper rapid scale-up, yet rising internet penetration signals untapped potential.
Competitive Landscape
The Asia-Pacific Courier, Express, and Parcel market is moderately fragmented, with global integrators, regional champions, and local specialists coexisting. DHL, FedEx, and UPS dominate international express lanes, offering integrated customs solutions that complement RCEP-driven trade facilitation. SF Express, ZTO Express, and Japan Post leverage domestic density and automated mega-hubs to achieve per-parcel costs that smaller peers struggle to match. Mid-tier entrants compensate with AI-powered dispatch that raises first-delivery success to 94%, narrowing the performance gap.
Mergers remain muted, but strategic alliances proliferate as carriers seek cross-border synergies without heavy capital spend. Patent filings for autonomous delivery systems jumped 41% in 2025, with Chinese firms controlling 62% of submissions and Japanese companies advancing robotics integration.
White-space opportunities exist in healthcare cold-chain and rural coverage, yet high capital thresholds deter pure-play tech startups. Sustainability pledges such as Yamato鈥檚 EV fleet expansion are key differentiators as shippers demand green credentials. Rising wage bills and fuel volatility heighten the value of automation and alternative propulsion, tilting the field toward operators that combine technology scale with regulatory expertise.
Asia-Pacific Courier, Express, And Parcel (CEP) Industry Leaders
China Post
SF Express (KEX-SF)
DHL Group
ZTO Express
J&T Express
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2025: Hong Kong Airlines inaugurated a thrice-weekly Hong Kong鈥揗elbourne service using Airbus A330 aircraft, adding 93,000 annual seats for time-sensitive freight and passenger traffic.
- October 2025: Blue Dart Express opened a Green Integrated Ground Hub in Pataudi, India, enhancing nationwide express capacity and supporting sustainability targets.
- June 2025: Blue Dart commenced commercial drone deliveries on select Indian routes, trialing faster rural parcel access with regulatory approvals.
- March 2024: DHL Express launched an automated sort hub in New Delhi after a EUR 200 million investment aimed at boosting India鈥檚 export capabilities.
Asia-Pacific Courier, Express, And Parcel (CEP) Market Report Scope
Destination
| Domestic |
| International |
Speed of Delivery
| Express |
| Non-Express |
Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
Mode of Transport
| Air |
| Road |
| Others |
End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
Country
| Australia |
| China |
| India |
| Indonesia |
| Japan |
| Malaysia |
| Pakistan |
| Philippines |
| Thailand |
| Vietnam |
| Rest of Asia-Pacific |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others | |
| Country | Australia |
| China | |
| India | |
| Indonesia | |
| Japan | |
| Malaysia | |
| Pakistan | |
| Philippines | |
| Thailand | |
| Vietnam | |
| Rest of Asia-Pacific |
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Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is聽influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise鈥檚 internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald鈥檚 and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant鈥檚 premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer鈥檚 home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier鈥檚 hub, it is then sorted and transported further until it reaches the customer鈥檚 doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS鈥檚 warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | 鈥嬧�婱ulti-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage o鈥嬧�媐 the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
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Research Methodology
黑料不打烊 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.
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