Mexico Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 2.77 Billion |
| Market Size (2026) | USD 2.94 Billion |
| Market Size (2031) | USD 4.02 Billion |
| Growth Rate (2026 - 2031) | 6.43% CAGR |
| Market Concentration | Low |
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. | |
Mexico Courier, Express, And Parcel (CEP) Market Analysis by 黑料不打烊
The Mexico courier, express, and parcel market size is projected to expand from USD 2.77 billion in 2025 and USD 2.94 billion in 2026 to USD 4.02 billion by 2031, registering a 6.43% CAGR between 2026 to 2031.
Accelerated smartphone adoption, nearshoring-driven component flows, and two-hour delivery windows are tightening fulfillment cycles, while mandatory digital invoicing is raising entry barriers and rewarding API-integrated carriers. Cross-border hubs at Tijuana, Ciudad Ju谩rez, and Nuevo Laredo are cutting United States delivery times to three days, and Felipe Angeles International Airport is diverting overnight air cargo from the congested Benito Ju谩rez facility. Operators with real-time Carta Porte compliance, multimodal routing, and granular parcel visibility capture the lion鈥檚 share of new demand, whereas legacy fleets grapple with fuel and wage inflation, violent cargo theft, and rural infrastructure gaps. VC-backed instant platforms subsidize two-hour promises that consumers now view as standard service, forcing every incumbent to redesign urban fleets and densify last-mile nodes across the Mexico courier, express, and parcel market.
Key Report Takeaways
- By destination, domestic shipments held 62.43% of the Mexico courier, express, and parcel market share in 2025. International parcels are the fastest-growing destination category at a 7.13% CAGR through 2031.
- By speed of delivery, non-express services controlled a 74.15% share of the Mexico courier, express, and parcel market size in 2025. Express services are set to advance at an 8.04% CAGR between 2026 and 2031.
- By business model, B2C accounted for 56.94% of shipments in 2025, while C2C is projected to expand at a 7.24% CAGR to 2031.
- By shipment weight, light parcels commanded 60.1% market share in 2025, whereas heavy parcels will climb at a 7.45% CAGR over 2026-2031.
- By mode of transport, road retained a 51.92% share in 2025, and air freight is forecast to grow at a 7.2% CAGR through 2031.
- By end user, e-commerce generated 36.11% of parcels in 2025, yet healthcare logistics leads growth at an 8.21% CAGR to 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.
Mexico Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Mobile-commerce boom increasing daily parcel density | +1.6% | Nationwide urban clusters | Short term (鈮� 2 years) |
| New border-zone fulfillment hubs shortening United States鈥揗exico delivery windows | +1.4% | Northern border states | Medium term (2-4 years) |
| Mandatory CFDI v4.0 plus Carta Porte compliance driving logistics digitization | +1.0% | National | Short term (鈮� 2 years) |
| Felipe 脕ngeles cargo hub adding overnight air-freight capacity | +0.8% | Central Mexico | Medium term (2-4 years) |
| VC-funded instant-delivery platforms normalizing two-hour service expectations | +0.7% | Major metros | Short term (鈮� 2 years) |
| Plug-and-play shipping aggregators enabling SME multi-carrier routing | +0.6% | Urban SMEs | Medium term (2-4 years) |
| Source: 黑料不打烊 | |||
Mobile-commerce Boom Increasing Daily Parcel Density
Mobile transactions already account for 68% of online purchases, doubling average order frequency and driving parcel volumes that outpace revenue growth. Social-commerce sellers use WhatsApp Business and Facebook Marketplace to create on-demand shipments that bypass formal storefronts, pressuring the Mexico courier, express, and parcel market to build micro-fulfillment hubs near dense neighborhoods. Same-day expectations trigger gig-fleet deployment and algorithmic routing, yet lower average basket values compress per-parcel revenue. CFDI v4.0 rules digitize invoices for every sale, discouraging informal shippers and steering volumes toward compliant carriers. Payment platforms such as Mercado Pago integrate with courier APIs, enabling cash-dependent buyers to track deliveries in real time and reinforcing the dominance of mobile channels across the Mexico courier, express, and parcel market[1]鈥淏alanza Comercial de Mercanc铆as de M茅xico,鈥� Instituto Nacional de Estad铆stica y Geograf铆a, inegi.org.mx.
New Border-zone Fulfillment Hubs Shortening United States鈥揗exico Delivery Windows
Facilities within 50 km of key crossings now release pre-cleared inventory in under 24 hours, slicing door-to-door transit from a week to three days Jones Day. Industrial absorption in Tijuana reached 2.8 million sq ft during 2024, and similar footprints are rising in Ciudad Juarez and Nuevo Laredo. USMCA rules on regional value content boost demand for just-in-time flows of automotive, electronics, and aerospace parts, solidifying cross-border parcel growth in the Mexico courier, express, and parcel market. Bonded warehouses expedite customs while lowering detention costs, and upgraded highways under Plan Mexico will cut border transit even further. Operators with bonded inventory and Carta Porte automation convert these speed advantages into higher market share and premium pricing[2]鈥淓studio de Venta Online 2025,鈥� Asociaci贸n Mexicana de Venta Online, blog.amvo.org.mx .
Mandatory CFDI v4.0 plus Carta Porte Add-on Driving Logistics Digitization
Non-compliance fines reaching MXR 93,330 per shipment force informal fleets to exit or modernize SAT. Carriers that embed API-enabled invoicing, geolocation, and vehicle validation into TMS platforms achieve inspections in under five minutes and reduce paperwork errors by 80%. Digital proof of delivery increases customer transparency, which boosts retention among SME shippers that require real-time status updates. Market consolidation accelerates as paper-based operators face prohibitive IT costs, funneling parcel volumes to technology-enabled incumbents. These capabilities serve as a moat in the Mexico courier, express, and parcel market where instant-delivery benchmarks demand continuous location feeds.
Felipe Angeles Cargo Hub Adding Overnight Air-freight Capacity
The airport handled 47,206 tons in 2023 and offers unrestricted 24-hour slots that shave dwell times by two hours per turn Swissport. Express carriers are shifting night sorting there to skirt Benito Ju谩rez congestion and secure predictable runway access. Highway links connecting Felipe Angeles with the Interoceanic Corridor enhance multimodal routing, allowing east-west transfers that avoid north-south choke points. Lower handling fees and faster clearance provide cost and service advantages that ripple through the Mexico courier, express, and parcel market鈥檚 high-value segments, notably healthcare and aerospace. Overnight capacity also supports B2C cut-offs past midnight, meeting consumer expectations for next-morning delivery without inflating air-network costs.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Highway cargo theft inflating security premiums | 鈭�0.9% | Central freight corridors | Long term (鈮� 4 years) |
| Sub-standard road infrastructure in Chiapas and Oaxaca | 鈭�0.7% | Southern states | Long term (鈮� 4 years) |
| Diesel-price surcharges and wage hikes compressing margins | 鈭�0.6% | National | Short term (鈮� 2 years) |
| Border de-minimis clearance congestion delaying packets | 鈭�0.5% | Northern gateways | Medium term (2-4 years) |
| Source: 黑料不打烊 | |||
Highway Cargo Theft on Primary North-south Corridors Inflating Security Premiums
Robberies reached 15,937 in 2024 with 83% involving violence, forcing GPS, convoys, and armored boxes that raise operating costs by up to 25%. Insurance deductibles jump for electronics and pharma, prompting some carriers to refuse loads or reroute through longer detours, eroding on-time performance. Security disparities widen the cost gap between northern and southern lanes, encouraging shippers to favor modal shifts or cross-dock transfers at safer hubs. Carriers investing in predictive analytics and law-enforcement partnerships convert security into a competitive edge, but overall risk still subtracts nearly one point from the Mexico courier, express, and parcel market鈥檚 growth outlook[3]鈥淐omplemento Carta Porte,鈥� Servicio de Administraci贸n Tributaria, omawww.sat.gob.mx .
Sub-standard Road Infrastructure in Chiapas鈥揙axaca Lengthening Lead-times
Deliveries into southern states arrive 30-40% later compared with northern routes due to narrow lanes, weak bridges, and seasonal washouts. Carriers deploy smaller trucks that reduce payload efficiency, inflating per-package costs. E-commerce penetration lags national averages by eight points, muting parcel density and discouraging network expansion. Federal road upgrades remain years away, so operators either charge hefty rural surcharges or cede the region to MexPost. The persistent lag curtails nationwide scale economies for the Mexico courier, express, and parcel market[4]鈥淚nforme mensual de robos al 31 de agosto 2024,鈥� Asociaci贸n Nacional de Empresas de Rastreo y Protecci贸n Vehicular, amda.mx.
Segment Analysis
By End-User Industry: Healthcare Leads Next-wave Expansion
E-commerce contributed 36.11% of 2025 parcels and continues to anchor volume growth despite price wars. Checkout conversion lifts when carriers offer live location feeds and two-hour windows.
Healthcare logistics will outpace every vertical at an 8.21% CAGR, driven by cold-chain pharma, device distribution, and hospital restocking programs. DHL鈥檚 EUR 2 billion (USD 2.35 billion) outlay in life-sciences infrastructure exemplifies capital pouring into this high-spec niche of the Mexico courier, express, and parcel market DHL Group.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Momentum Exceeds Domestic Scale
International parcels are set to grow at a 7.13% CAGR, fueled by nearshoring trade where bilateral United States commerce topped USD 475.6 billion in 2025. The Mexico courier, express, and parcel market size for international flows is forecast to rise sharply as pre-cleared inventory and bonded hubs convert customs friction into speed gains.
Domestic routes, while still holding 62.43% market share, hinge on mobile-commerce density in megacities and same-day promises that require dense node networks. Address standardization issues in informal neighborhoods lifts failed-delivery ratios, but urban micro-hubs and cargo bikes help restore reliability. Cross-subsidies from international revenues often bankroll last-mile innovations, knitting both segments into a unified growth engine within the Mexico courier, express, and parcel market.
By Speed of Delivery: Express Outpaces Non-express
Non-express offerings dominated 74.15% revenue in 2025, yet instant-delivery apps shift consumer tolerance so quickly that express bookings will capture incremental share at an 8.04% CAGR. The Mexico courier, express, and parcel market size for express lanes will expand as Felipe 脕ngeles provides overnight uplift and as manufacturers require just-in-time components.
Non-express services remain vital for rural penetration and bulkier C2C trades, but wage and diesel inflation squeeze margins, inducing price rises that erode their discount advantage. Technology-enabled dynamic routing and parcel lockers mitigate cost spikes and help preserve relevance, ensuring balanced modal options across the Mexico courier, express, and parcel market.
By Shipment Weight: Heavy Parcels Gain Industrial Traction
Light items capture 60.1% of the Mexico courier, express, parcel market size thanks to fashion accessories and phone accessories ordered via mobile checkout, optimizing two-hour gigs with bikes and scooters.
Heavy consignments will climb 7.45% annually as relocated factories ship machinery spares and automotive modules that cannot wait for LTL freight. Dedicated lift-gate vans, palletized handling, and bonded escorts turn this into the most profitable slice of the Mexico courier, express, and parcel market despite lower unit counts.
Note: Segment shares of all individual segments available upon report purchase
By Mode of Transport: Air Adds Share to Road Stronghold
Road still holds 51.92% market share by leveraging omnipresent highway access and last-mile flexibility. Autonomous route optimization and enhanced security tech keep it competitive despite theft risks.
Air lifts will grow 7.2% each year as Felipe 脕ngeles scales overnight lanes, and as the United States imports demand next-morning delivery on high-value goods. Multimodal pilots that combine rail to port and air to hinterland hint at future efficiency gains across the Mexico courier, express, and parcel market.
By Business Model: Social Commerce Spurs C2C Take-off
B2C shipping retains a 56.94% stronghold through marketplace growth and retailer omnichannel strategies. Embedded checkout APIs funnel orders straight into carrier TMS, tightening SLA compliance.
C2C, however, heads the growth chart at a 7.24% CAGR, propelled by peer-to-peer sales over chat apps. Shipping aggregators allow individual sellers to buy labels at corporate rates, breaking historical barriers. B2B flows stay niche by volume yet command premium yields on regulatory and handling complexity, stabilizing revenue across the Mexico courier, express, and parcel industry.
Geography Analysis
Northern border states thrive on nearshoring trade, yielding dense cross-border flows that jump from week-long to three-day cycles once inventory moves into bonded warehouses near Tijuana and Ciudad Ju谩rez. Monterrey鈥檚 industrial belt adds B2B urgency for just-in-time automotive modules, amplifying express demand inside the Mexico courier, express, and parcel market.
The Baj铆o corridor around Guanajuato and Quer茅taro benefits from aerospace clusters that insist on track-and-trace compliance and zero-defect delivery, prompting carriers to station spare parts depots for emergency call-outs. Central Mexico, led by Mexico City鈥檚 20 million-strong metro, remains parcel king by pure consumer scale, yet air congestion at Benito Ju谩rez fuels the shift toward Felipe 脕ngeles overnight routing.
Southern states lag because inadequate roads add up to 40% to travel times, deterring premium couriers. Government budgets earmark USD 18.9 billion for upgrades, yet most projects mature after 2030, leaving a mid-term vacuum that public postal services and informal fleets must fill. Rising tourism on both coasts triggers seasonal parcel spikes that stress network flexibility, compelling carriers to reposition vehicles on short notice across the Mexico courier, express, and parcel market.
Competitive Landscape
The field stays fragmented as the top five hold less than 30% combined share after UPS abandoned its 2025 Estafeta takeover. Technology stands as the prime differentiator: Estafeta, DHL, and FedEx deploy automated sorters and AI route engines, whereas regional players lean on local know-how to dodge theft hot-spots. Aggregator portals such as Envia consolidate SME demand and discount pressure, threatening direct shipper relationships unless carriers offer equivalent APIs.
Healthcare specialization emerges: DHL earmarks half of its health-logistics war-chest for the Americas, signaling an arms race for GDP-certified depots. VC-backed instant platforms underwrite urban same-hour fleets that capture consumer mind-share but grapple with scaling profitability beyond core metros.
Margin squeeze from 108% wage hikes and volatile diesel frames a survival-of-the-fittest environment. Operators investing in electric vans, solar-powered depots, and advanced security protocols will edge ahead as sustainability and theft risk rise on shipper scorecards. Consolidation through tuck-ins and tech partnerships looks inevitable across the Mexico courier, express, and parcel market.
Mexico Courier, Express, And Parcel (CEP) Industry Leaders
DHL Group
Estafeta
FedEx
United Parcel Service of America, Inc. (UPS)
Correos de Mexico
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2025: DHL Express invested USD 81 million in Mexico, adding over 1,000 vehicles and opening 100 new service points to enhance parcel coverage and support SME shipments.
- April 2025: DHL unveiled a EUR 2 billion (USD 2.35 billion) global health-logistics expansion through 2030, dedicating half the funds to the Americas and positioning Mexico for new GDP-grade cold-chain depots.
- April 2025: DSV finalized the EUR 14 billion (USD 16.46 billion) DB Schenker acquisition, bundling cross-border freight and contract logistics offerings that upgrade European-Mexico parcel connectivity.
- January 2025: USPS raised international parcel prices to Mexico by an average of 4.9%, while International Surface Air Lift climbed 28.9%, reshaping carrier selection for cross-border shippers.
Mexico Courier, Express, And Parcel (CEP) Market Report Scope
| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| 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 |
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. |
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.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
