China Less than-Truck-Load (LTL) Market Size
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 92.55 Billion |
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Market Size (2030) | USD 137.95 Billion |
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Largest Share by End User Industry | Manufacturing |
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CAGR (2024 - 2030) | 6.88 % |
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Fastest Growing by End User Industry | Wholesale and Retail Trade |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
China Less than-Truck-Load (LTL) Market Analysis
The China Less than-Truck-Load (LTL) Market size is estimated at 92.55 billion USD in 2024, and is expected to reach 137.95 billion USD by 2030, growing at a CAGR of 6.88% during the forecast period (2024-2030).
92.55 Billion
Market Size in 2024 (USD)
137.95 Billion
Market Size in 2030 (USD)
5.67 %
CAGR (2017-2023)
6.88 %
CAGR (2024-2030)
Largest Market by Destination
79.04 %
value share, Domestic, 2023
The growth of the domestic segment is supported by growing B2B e-commerce, rapid urbanization, growth of small and medium e-commerce merchants, just-in-time manufacturing, etc.
Largest Market by End User Industry
40.54 %
value share, Manufacturing, 2023
Manufacturing is the largest industry in China. It contributed around 30% to the national GDP in 2022. The manufacturing sector's contribution to the GDP registered growth of 4.30% YoY in 2022.
Fastest Growing Market by End User Industry
8.67 %
Projected CAGR, Wholesale and Retail Trade, 2024-2030
The segment is expected to grow in the coming years, supported by the growth of e-commerce. The e-commerce market is expected to register a CAGR of 12.16% during 2023-2027.
Fastest Growing Market by Destination
7.14 %
Projected CAGR, International, 2024-2030
The future of the international segment seems positive, as China's cross-border e-commerce B2B market is anticipated to expand and register a CAGR of 25% between 2021 and 2025.
First Leading Market Player
3.18 %
market share, SF Express (KEX-SF), 2022
SF Express offers services for more than 130,000 long-haul and branch routes. The company operates more than 105,000 terminal collection and distribution vehicles.
China's auto exports increased by 57.9% YoY in 2023, driving the growth of the market
- In 2022, the manufacturing end-user segment experienced growth boosted by the manufacturing industry's output, which rose by 3% and reached USD 4.83 trillion. China's manufacturing production sustained its development in 2022, with high-tech manufacturing and equipment manufacturing posting robust performance. Moreover, in 2023, China remained the world's top manufacturing hub, achieving this feat for the 14th consecutive year. The rise in production and exports is driving the demand for road services as the trucking industry plays a significant role in ensuring the timely delivery and distribution of manufactured goods domestically. In 2023, China's auto exports surged 57.9% YoY to a record high of 4.91 million vehicles.
- Online retail sales expanded by 4% in 2022. Online retail sales of physical goods climbed by 6.20% YoY in 2022. The country's total retail sales of consumer goods in 2022 dipped by 0.2% over the previous year, but the December data showed a recovery in consumption. Alibaba鈥檚 Taobao and Tmall (with 50.8% of the market share) and JD.com (15.9%) are the domestic platforms that dominate China鈥檚 e-commerce market. Pinduoduo (13.2%) recently overtook dozens of competitors to become the third-largest platform, using a new group purchasing model.
- China is planning to increase its annual natural gas production from 205 bcm in 2021 to more than 230 bcm by 2025 and maintain its crude oil production at 200 million tons annually. Moreover, the Chinese pharmaceutical industry is anticipated to register a CAGR of 12.2% by 2025. China intends to reinvent its pharmaceutical industry as part of the "Made in China 2025" industrial plan. Furthermore, major manufacturing firms will be fully digitized, and backbone enterprises in key industries will be smart by 2035.
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China Less than-Truck-Load (LTL) Market Trends
E-commerce logistics flourished in China, with the index rising to 104.3 points in 2022, fueling industry supply chain
- China is the world's largest logistics market, propelled by favorable logistics prospects and strong business fundamentals. The Chinese government allocated a significant investment of CNY 181.6 billion (USD 24.94 billion) in 2021 toward the logistics sector. This substantial backing has translated into a doubled market value for China's logistics industry, soaring beyond CNY 335 trillion (USD 46.02 trillion) in 2021. This expansion is intricately tied to the thriving domestic and cross-border e-commerce activities currently surging in the country.
- E-commerce logistics in China experienced a rebound in May 2022, with the index increasing by 2.1 points to 104.3 from April. This improvement was driven by various policies implemented by China, including efforts to eliminate transportation bottlenecks and ease the operational challenges faced by logistics companies. Shanghai, in particular, initiated an action plan aimed at accelerating economic recovery. The plan includes measures to stabilize industrial and supply chains in the Yangtze River Delta region and enhance the efficiency of domestic and international logistics and transportation networks.
- The transportation and storage sector in China experienced a significant decrease in YoY growth, dropping from 19.32% in 2021 to 2.58% in 2022. This decline was primarily attributed to a 40% reduction in China's manufacturing orders, which had a notable impact on the demand for transportation and storage services. Therefore, China has prioritized enhancing transportation and logistics to maintain business operations and economic stability, with the Industrial and Commercial Bank of China's Shandong branch disbursing over USD 1.19 billion in loans to support the logistics sector in 2022.
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Crude oil demand in China is expected to decline slightly owing to strong demand for EVs
- China's retail diesel and gasoline prices are set to soar to historically high levels following a surge in global crude oil benchmarks amid the Russia-Ukraine War. Under China's pricing system, retail fuel prices are assessed every ten working days to reflect global crude oil benchmarks if the benchmark prices move between USD 40 and USD 130. Outside that band, retail prices do not change or only move marginally. Chinese oil refiners, both state-backed and independent, are lowering operational rates to cope with high oil prices and ebbing fuel demand in the country due to the mobility restrictions during the COVID-19 pandemic.
- Unlike Japan and South Korea, both looking for ways to battle runaway oil prices via subsidies and tax cuts, China raised its ceiling prices for gasoil and gasoline in keeping with its domestic oil pricing mechanism. It has no plans to lower consumption tax as consumers shrug off higher transportation fuel costs. The National Development and Reform Commission raised the country's ceiling retail price for gasoline and gasoil by USD 31.3 per ton and USD 29.84 per ton, respectively, in 2022. China's crude oil demand is expected to decline, as strong demand for electric vehicles weighs on gasoline demand.
- China is unlikely to reduce the consumption tax on gasoline and gasoil during its net-zero journey. Operational rates in Shandong province, China's oil refining hub, fell to a two-year low of 57.09%. China's daily oil throughput in the first two months of 2022 fell to its lowest since December 2020. Oil prices rose in the first half of 2022 due to a fear caused by Russia's invasion of Ukraine and concerns that sanctions against Russia would lead to shortages.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- China strives toward smart manufacturing under the Made in China 2025 Strategy
- Chinese e-commerce is set to retain its dominant position and is expected to register a CAGR of 12.17% during 2023-27
- China climbs to the 19th rank in 2023 LPI, boosted by major investments and a thriving e-commerce sector
- China reigned as the leading automobile exporter in the world in the first half of 2023, led by a robust domestic car production market
- Economic recovery, reduced toll tariffs, and reduction in fuel prices expected to reduce truck operational costs and overall trucking demand
- Despite scrapping the national subsidy, the EV market is expected to witness an upward trend, reaching around 300,000 units in 2023
- Road freight rates in China increased despite a slowdown in demand and ample supply of transport capacity
- Marginal PPI rise due to price controls and significant CPI rise witnessed due to increase in food prices
- The oil and gas industry, along with manufacturing, registered the highest GDP growth rate from 2017 to 2022
- New energy vehicles (NEVs) are expected to account for about 35% of the Chinese domestic market by 2025
- China drives economic recovery with extensive highway investments and road and highway development plans
- China remained highly reliant on agri-food imports in 2022, with Brazil and the United States as top suppliers
- China's truck sales are hitting new records, with demand for heavy weight trucks sustaining the highest growth
- Growing trade volumes despite a decline in domestic production of manufacturing industry leading to growing road tonnage
- Infrastructure investments under the BRI initiative by the government are increasing to facilitate a rise in freight volumes across all modes of transportation
China Less than-Truck-Load (LTL) Industry Overview
The China Less than-Truck-Load (LTL) Market is fragmented, with the top five companies occupying 7.45%. The major players in this market are Deppon Express, SF Express (KEX-SF), Shanghai Aneng Juchuang Supply Chain Management Co., Ltd., Shanghai Yunda Freight Co., Ltd. and STO Express (sorted alphabetically).
China Less than-Truck-Load (LTL) Market Leaders
Deppon Express
SF Express (KEX-SF)
Shanghai Aneng Juchuang Supply Chain Management Co., Ltd.
Shanghai Yunda Freight Co., Ltd.
STO Express
Market/1709042581213_ChinaLessthan-Truck-Load(LTL)Market_market_concentration.svg)
Other important companies include Changjiu Logistics, CMA CGM Group, DHL Group, Yimi Dida Supply Chain Group Co., Ltd., YTO Express, ZTO Express.
*Disclaimer: Major Players sorted in alphabetical order.
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China Less than-Truck-Load (LTL) Market News
- October 2023: Truck and industrial equipment maker Volvo, auto maker Renault, and shipping giant CMA CGM unveiled a joint venture that would create a company aimed at developing a new series of electric vans. The partnership would provide electric urban transportation for companies in the logistics and transportation sector seeking to decarbonize their fleets.
- October 2023: In response to growing demand for cross-border shipping when shopping on mainland e-commerce platforms, SF Express has launched, SF Express Container Line (SFBuy), one-stop cargo transportation platform specially built for global overseas shopping users, providing safe, efficient and convenient cross-border parcel transportation services.
- August 2023: SF Express, China鈥檚 leading courier service, has been running livestreams selling items such as fresh fruits and agricultural products on its WeChat mini-program in recent weeks.
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We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export and import trends among other key indicators.
China Less than-Truck-Load (LTL) Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study鈥�
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. GDP Distribution By Economic Activity
2.2. GDP Growth By Economic Activity
2.3. Economic Performance And Profile
2.3.1. Trends in E-Commerce Industry
2.3.2. Trends in Manufacturing Industry
2.4. Transport And Storage Sector GDP
2.5. Logistics Performance
2.6. Length Of Roads
2.7. Export Trends
2.8. Import Trends
2.9. Fuel Pricing Trends
2.10. Trucking Operational Costs
2.11. Trucking Fleet Size By Type
2.12. Major Truck Suppliers
2.13. Road Freight Tonnage Trends
2.14. Road Freight Pricing Trends
2.15. Modal Share
2.16. Inflation
2.17. Regulatory Framework
2.18. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2030 and analysis of growth prospects)
3.1. End User Industry
3.1.1. Agriculture, Fishing, and Forestry
3.1.2. Construction
3.1.3. Manufacturing
3.1.4. Oil and Gas, Mining and Quarrying
3.1.5. Wholesale and Retail Trade
3.1.6. Others
3.2. Destination
3.2.1. Domestic
3.2.2. International
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. Changjiu Logistics
4.4.2. CMA CGM Group
4.4.3. Deppon Express
4.4.4. DHL Group
4.4.5. SF Express (KEX-SF)
4.4.6. Shanghai Aneng Juchuang Supply Chain Management Co., Ltd.
4.4.7. Shanghai Yunda Freight Co., Ltd.
4.4.8. STO Express
4.4.9. Yimi Dida Supply Chain Group Co., Ltd.
4.4.10. YTO Express
4.4.11. ZTO Express
5. KEY STRATEGIC QUESTIONS FOR ROAD FREIGHT CEOS
6. APPENDIX
6.1. Global Logistics Market Overview
6.1.1. Overview
6.1.2. Porter鈥檚 Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (Market Drivers, Restraints & Opportunities)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
6.7. Currency Exchange Rate
List of Tables & Figures
- Figure 1:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, CHINA, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, CHINA, 2017 鈥� 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, CHINA, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, CHINA, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, CHINA, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, CHINA, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, CHINA, 2017 鈥� 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, CHINA, 2017-2022
- Figure 9:
- RANK OF LOGISTICS PERFORMANCE, RANK, CHINA, 2010 - 2023
- Figure 10:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, CHINA, 2022
- Figure 11:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, CHINA, 2022
- Figure 12:
- VALUE OF EXPORTS, USD, CHINA, 2017 - 2022
- Figure 13:
- VALUE OF IMPORTS, USD, CHINA, 2017 - 2022
- Figure 14:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, CHINA, 2017 - 2022
- Figure 15:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, CHINA, 2022
- Figure 16:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, CHINA, 2022
- Figure 17:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, CHINA, 2022
- Figure 18:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, CHINA, 2017 - 2030
- Figure 19:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, CHINA, 2017 - 2022
- Figure 20:
- MODAL SHARE OF FREIGHT TRANSPORTATION SECTOR, SHARE % BY TON-KM, CHINA, 2022
- Figure 21:
- MODAL SHARE OF FREIGHT TRANSPORT SECTOR, SHARE % BY TONS, CHINA, 2022
- Figure 22:
- WHOLESALE PRICE INFLATION RATE, %, CHINA, 2017 - 2022
- Figure 23:
- CONSUMER PRICE INFLATION RATE, %, CHINA, 2017 - 2022
- Figure 24:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 25:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 26:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, TON-KM, CHINA, 2017 - 2030
- Figure 27:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, CHINA, 2017 - 2030
- Figure 28:
- VALUE SHARE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, CHINA, 2017 - 2030
- Figure 29:
- VOLUME OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 30:
- VALUE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 31:
- VOLUME OF CONSTRUCTION INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 32:
- VALUE OF CONSTRUCTION INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 33:
- VOLUME OF MANUFACTURING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 34:
- VALUE OF MANUFACTURING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 35:
- VOLUME OF OIL AND GAS, MINING AND QUARRYING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 36:
- VALUE OF OIL AND GAS, MINING AND QUARRYING INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 37:
- VOLUME OF WHOLESALE AND RETAIL TRADE INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 38:
- VALUE OF WHOLESALE AND RETAIL TRADE INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 39:
- VOLUME OF OTHERS INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 40:
- VALUE OF OTHERS INDUSTRY LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 41:
- VOLUME OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, TON-KM, CHINA, 2017 - 2030
- Figure 42:
- VALUE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, USD, CHINA, 2017 - 2030
- Figure 43:
- VALUE SHARE OF LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, %, CHINA, 2017 - 2030
- Figure 44:
- VOLUME OF DOMESTIC LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 45:
- VALUE OF DOMESTIC LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 46:
- VOLUME OF INTERNATIONAL LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, TON-KM, CHINA, 2017 - 2030
- Figure 47:
- VALUE OF INTERNATIONAL LESS THAN-TRUCK-LOAD (LTL) ROAD FREIGHT TRANSPORT MARKET, USD, CHINA, 2017 - 2030
- Figure 48:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, CHINA, 2017 - 2023
- Figure 49:
- MOST ADOPTED STRATEGIES, COUNT, CHINA, 2017 - 2023
- Figure 50:
- VALUE SHARE OF MAJOR PLAYERS, %, CHINA 2022
China Less than-Truck-Load (LTL) Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Domestic, International are covered as segments by Destination.
- In 2022, the manufacturing end-user segment experienced growth boosted by the manufacturing industry's output, which rose by 3% and reached USD 4.83 trillion. China's manufacturing production sustained its development in 2022, with high-tech manufacturing and equipment manufacturing posting robust performance. Moreover, in 2023, China remained the world's top manufacturing hub, achieving this feat for the 14th consecutive year. The rise in production and exports is driving the demand for road services as the trucking industry plays a significant role in ensuring the timely delivery and distribution of manufactured goods domestically. In 2023, China's auto exports surged 57.9% YoY to a record high of 4.91 million vehicles.
- Online retail sales expanded by 4% in 2022. Online retail sales of physical goods climbed by 6.20% YoY in 2022. The country's total retail sales of consumer goods in 2022 dipped by 0.2% over the previous year, but the December data showed a recovery in consumption. Alibaba鈥檚 Taobao and Tmall (with 50.8% of the market share) and JD.com (15.9%) are the domestic platforms that dominate China鈥檚 e-commerce market. Pinduoduo (13.2%) recently overtook dozens of competitors to become the third-largest platform, using a new group purchasing model.
- China is planning to increase its annual natural gas production from 205 bcm in 2021 to more than 230 bcm by 2025 and maintain its crude oil production at 200 million tons annually. Moreover, the Chinese pharmaceutical industry is anticipated to register a CAGR of 12.2% by 2025. China intends to reinvent its pharmaceutical industry as part of the "Made in China 2025" industrial plan. Furthermore, major manufacturing firms will be fully digitized, and backbone enterprises in key industries will be smart by 2035.
| End User Industry | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others |
| Destination | |
| Domestic | |
| International |
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Market Definition
- Agriculture, Fishing, and Forestry (AFF) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF industry players on road freight transport service. The end user players considered are the establishments primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities. Herein, across the value chain, Logistics Service Providers (LSPs) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Construction - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the construction industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in constructing, repairing and renovating residential & commercial buildings, infrastructure, engineering works, subdividing and developing land. Logistics Service Providers (LSPs) play a crucial role in increasing profitability of construction projects by maintaing the inventory of raw materials & equipment, time-critical supplies and by providing other value added services for effective project management.
- Containerized Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Fluid Goods - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users for the transport of bulk liquids, that are often used in extraction, manufacturing, food processing, agriculture industries among others. It includes transportation of liquids like (i) Chemicals/ hazardous goods (for instance acids) (ii) Water (potable as well as waste) (iii) Oil and gas (upstream as well as downstream like gasoline, fuel, crude oil, or propane), (iv) Food grade bulk liquids (like milk, or juice), (v) Rubber, (vi) Agrichemical products, among others. These goods are generally transported through tanker trucking.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- Full-Truck-Load (FTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Full-Truck-Load (FTL) services. FTL road freight transport is characterized as a full single load not combined with other shipments. It comprises of shipments (i) devoted to the goods of a single shipper (ii) taken directly from a point of origin to one or more destination points (iii) comprising of bulk mail truck transportation (iv) comprising of both Container (Full Container Load, FCL)/Non-Container trucking services (v)comprsing of goods requiring temperature controlled or non-temperature controlled transportation services (vi) comprising of bulk liquid tankering (vii) invoving trucking of waste (viii) hazardous material trucking. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Less than-Truck-Load (LTL) Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on Less than-Truck-Load (LTL) services. LTL road freight transport is characterized as multiple shipments combined onto a single truck for multiple deliveries within a network. It comprises of establishments (i) primarily engaged in general and specialized freight trucking of less than complete truck-loads, (ii) characterized by the use of terminals to consolidate shipments, generally from several shippers, into a single truck for haulage between a load assembly terminal and a disassembly terminal, where the load is sorted and shipments are re-routed for delivery (iv) Less than-Container-Load (LCL) shipping/ Groupage Shipping in case of trucking services. The activities in scope include (i) local pick-up, (ii) line-haul, and (iii) local delivery. Related value added services (VAS) of sorting, consolidation, deconslidation are included in the other services segment of freight and logistics market.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is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.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name 鈥榗ross docking鈥� explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It鈥檚 a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated 鈥渞eefer鈥� units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters 鈥� a width beyond 2.33 meters 鈥� or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling 鈥榖ackward鈥� through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
糖心vlog传媒 follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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