Nigeria Courier, Express, and Parcel (CEP) Market Size
Icons | Lable | Value |
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Study Period | 2017 - 2030 | |
Market Size (2024) | USD 119.69 Million | |
Market Size (2030) | USD 186.81 Million | |
Largest Share by Destination | Domestic | |
CAGR (2024 - 2030) | 7.70 % | |
Fastest Growing by Destination | International | |
Market Concentration | Low | |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
Nigeria Courier, Express, and Parcel (CEP) Market Analysis
The Nigeria Courier, Express, and Parcel (CEP) Market size is estimated at 119.69 million USD in 2024, and is expected to reach 186.81 million USD by 2030, growing at a CAGR of 7.70% during the forecast period (2024-2030).
119.69 Million
Market Size in 2024 (USD)
186.81 Million
Market Size in 2030 (USD)
6.31 %
CAGR (2017-2023)
7.70 %
CAGR (2024-2030)
Fastest Growing Market by Speed of Delivery
8.69 %
Projected CAGR, Express, 2024-2030
The demand for same-day and next-day deliveries for which new services are being launched is significantly contributing to the growth of the express delivery market.
Fastest Growing Market by Model
10.01 %
Projected CAGR, Business-to-Consumer (B2C), 2024-2030
E-commerce is a significant facilitator for B2C transactions generating delivery demand, wherein mobile shopping dominates online shopping activities and is a major driver.
Largest Market by Shipment Weight
55.55 %
value share, Light Weight Shipments, 2023
Online orders for the delivery of personal care products, groceries, and FMCG goods are driving the segment's growth.
Largest Market by End User Industry
39.45 %
value share, Manufacturing, 2023
Growth in Nigeria's pharmaceutical manufacturing industry is expected to generate the need for cold-chain and specialized delivery services.
First Leading Market Player
15.25 %
market share, Red Star Express, 2022
Red Star Express has a fleet of over 700 vehicles operating within Nigeria. Also, the company supports delivery to more than 1500 communities in Nigeria.
The CEP market is witnessing steady growth due to increasing demand and sectoral advancements
- The CEP value is expected to record a CAGR of 7.99% from 2023 to 2029. In Nigeria, self-service lockers are being implemented to handle domestic and international parcel deliveries. Registered individuals and companies can use SmartParcel to drop parcels and paperwork at a local smart locker run by a company franchisee. SmartParcel's delivery partners then deliver the items to a locker close to the receiver or any locker the consignee requests. The items can also be delivered directly to the recipients' residences or places of business by courier partners. As part of this plan, SmartParcel signed an agreement with the Nigerian Postal Service to install smart lockers in post offices across Nigeria's 774 local government areas in 2022. The aim is to set up 10,000 lockers via a franchise model wherein users and corporate entities can own lockers and monitor activities from a dashboard.
- The freight and logistics market developed rapidly during the review period, led by the growing volumes of CEPs. As of 2022, Kobo360, a logistics company in Nigeria (Lagos) launched in 2016, had the highest number of employees compared to other logistics companies in the country. The company has over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
- In 2021, Nigerian Postal Services generated NGN 3.63 billion (USD 4 million). EMS-SpeedPost generated the highest income of NGN 1.27 billion (USD 1.7 million), accounting for 35.14% of the total revenue generated for the year. The volume of CEPs in the country is projected to rise due to growing e-commerce, which is expected to reach about USD 10.11 billion by 2027.
Nigeria Courier, Express, and Parcel (CEP) Market Trends
The transportation sector contribution to nominal GDP dropped to 1.35% in Q2 2023 due to petrol subsidy removal
- In the second quarter of 2023, the transportation sector's contribution to nominal GDP in Nigeria stood at 1.35%, marking a notable decline from the 2.79% recorded during the same period in 2022 and below the 1.71% recorded in the first quarter of 2023. This decrease in the significance of transportation activities can be primarily attributed to the government's removal of the petrol subsidy, resulting in a considerable hike in pump prices, reaching as high as N640, depending on the state.
- The transportation and storage sector saw a significant contraction in the second quarter of 2023, with a growth rate of -50.64%. This decline was notably lower than the same quarter in the previous year, dropping by 102.30 percentage points, and it marked a substantial decrease of 60.01 percentage points compared to the previous quarter. The sector's growth rate was -25.00% on a QoQ basis. Regarding its contribution to real GDP for the second quarter of 2023, the transportation and storage sector accounted for 0.89%, showing a decline from 1.84% in the same period the previous year and falling below 1.18% in the first quarter of 2023.
- The Nigerian logistics industry has grown slowly due to persistent infrastructure challenges. Despite that, the industry is valued at around USD 60 billion, with e-commerce significantly boosting the economy. In 2023, the Nigerian e-commerce market generated USD 10.11 billion in revenue. Its revenue is expected to register a 10.79% CAGR between 2023 and 2027, resulting in a market volume of around USD 6 billion by 2023 due to infrastructure improvements in railways and roads and enhanced relations with other nations.
Fuel prices have witnessed a steep rise as fuel subsidies have been terminated, citing budgetary concerns
- Nigeria has the eighth-lowest gasoline prices in the world. Due to the government's significant subsidies for imported goods, it was ranked eighth in the world index, with the price of gasoline being USD 0.40 per liter or USD 1.82 per gallon in April 2022. As of September 2022, the average price of gasoline in Nigeria was NGN 191.65 (USD 0.46) per liter. Nigeria's average oil production dropped by 14.69% YoY to 1.22 million barrels per day in the second quarter of 2023 from 1.43 bpd recorded in 2022. The cost of fuel imports is rising in response to the recent rises in the price of crude oil in the international market.
- The price of petrol, arguably Nigeria's most consumed fuel, increased by a whopping 47.18% on a YoY basis between April 2022 and April 2023. Due to its dilapidated local refineries, Nigeria currently imports over 90% of its liquid products. The average retail price paid by consumers for Premium Motor Spirit (PMS) or petrol in April 2023 was NGN 254.06 (USD 0.56), indicating an increase of 47.18% relative to the value recorded in April 2022 of NGN 172.61 (USD 0.385). Since June 2023, Nigeria's fuel subsidies have been terminated, citing budgetary concerns. This led to a steep rise in fuel prices.
- Nigeria's crude oil production has increased, and the country's oil reserves are estimated to be 36.89 billion barrels, consisting of 31.418 billion barrels of crude oil and 5.476 billion barrels of condensate. Nigeria aims to have a reserve of around 40 billion barrels by 2025. The country's national gas reserve is 203.16 trillion cubic feet (TCF), with a target of 210 TCF by 2025 and 220 TCF by 2030.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Consumer spending boosted to USD 241.88 billion due to tourism and impulsive buying
- GDP contribution driven by a growing economy, construction projects, and domestic manufacturing volumes
- The number of online shoppers is expected to reach 122.5 million by 2025 from 76.7 million in 2021
- Nigeria launches Export774 campaign to boost non-oil exports to diversify economy
- Nigeria ranks 88th in LPI investing more USD 1.3 trillion in infrastructure and energy for economic boost
- Nigeria aims to strengthen the agriculture sector under the National Agricultural Technology and Innovation Policy (NATIP), 2022-2027
- Global inflationary pressures, supply chain disruptions, and high customs tariffs, coupled with high foreign exchange rates, caused prices to rise significantly
- Manufacturing contributed around 15% to the GDP and grew by 6.93% YoY in 2022
- Nigeria strives to reduce import reliance under the 100-for-100 Policy on Production and Productivity
- Nigeria ranked 114th Globally in 2022 GII, struggles with inefficient logistics, and insufficient funds for infrastructure upgrades
Nigeria Courier, Express, and Parcel (CEP) Industry Overview
The Nigeria Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 32.35%. The major players in this market are ABC Transport PLC, DHL Group, Nipost, Red Star Express and United Parcel Service of America, Inc. (UPS) (sorted alphabetically).
Nigeria Courier, Express, and Parcel (CEP) Market Leaders
ABC Transport PLC
DHL Group
Nipost
Red Star Express
United Parcel Service of America, Inc. (UPS)
Other important companies include Africa Delivery Technologies Limited, Bolloré Group, Rowsy International Limited, SkyNet Worldwide Express.
*Disclaimer: Major Players sorted in alphabetical order.
Nigeria Courier, Express, and Parcel (CEP) Market News
- March 2023: UPS entered a partnership with Google Cloud, where Google will help UPS by putting radio-frequency identification chips on packages to track them efficiently.
- September 2022: ABC Transport PLC raised about NGN 1.157 billion in new equity and debt capital to expand its balance sheet. The company raised NGN 900 million through bond issuance and the balance of NGN 257 million through rights issues to existing shareholders.
- September 2022: The company opened its branch in Nigeria in partnership with Karen-Happucha Global Services Limited. It provides a veritable platform for online marketing, ordering, and delivery of packages. The new offices provide over 400 direct and indirect jobs to Nigerians.
Free with this Report
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-import trends, logistics performance among other key indicators.
Nigeria Courier, Express, and Parcel (CEP) 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
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. Demographics
2.2. GDP Distribution By Economic Activity
2.3. GDP Growth By Economic Activity
2.4. Inflation
2.5. Economic Performance And Profile
2.5.1. Trends in E-Commerce Industry
2.5.2. Trends in Manufacturing Industry
2.6. Transport And Storage Sector GDP
2.7. Export Trends
2.8. Import Trends
2.9. Fuel Price
2.10. Logistics Performance
2.11. Infrastructure
2.12. Regulatory Framework
2.12.1. Nigeria
2.13. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)
3.1. Destination
3.1.1. Domestic
3.1.2. International
3.2. Speed Of Delivery
3.2.1. Express
3.2.2. Non-Express
3.3. Model
3.3.1. Business-to-Business (B2B)
3.3.2. Business-to-Consumer (B2C)
3.3.3. Consumer-to-Consumer (C2C)
3.4. Shipment Weight
3.4.1. Heavy Weight Shipments
3.4.2. Light Weight Shipments
3.4.3. Medium Weight Shipments
3.5. Mode Of Transport
3.5.1. Air
3.5.2. Road
3.5.3. Others
3.6. End User Industry
3.6.1. E-Commerce
3.6.2. Financial Services (BFSI)
3.6.3. Healthcare
3.6.4. Manufacturing
3.6.5. Primary Industry
3.6.6. Wholesale and Retail Trade (Offline)
3.6.7. Others
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. ABC Transport PLC
4.4.2. Africa Delivery Technologies Limited
4.4.3. Bolloré Group
4.4.4. DHL Group
4.4.5. Nipost
4.4.6. Red Star Express
4.4.7. Rowsy International Limited
4.4.8. SkyNet Worldwide Express
4.4.9. United Parcel Service of America, Inc. (UPS)
5. KEY STRATEGIC QUESTIONS FOR CEP CEOS
6. APPENDIX
6.1. Global Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (DROs)
6.1.5. Technological Advancements
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- POPULATION DISTRIBUTION BY GENDER, COUNT, NIGERIA, 2017 - 2030
- Figure 2:
- POPULATION DISTRIBUTION BY DEVELOPMENT AREA, COUNT, NIGERIA, 2017 - 2030
- Figure 3:
- POPULATION DENSITY, POPULATION/SQ. KM, NIGERIA, 2017 - 2030
- Figure 4:
- GROSS DOMESTIC PRODUCT (GDP) SHARE OF FINAL CONSUMPTION EXPENDITURE (IN CURRENT PRICES), SHARE % OF GDP, NIGERIA, 2017 - 2022
- Figure 5:
- FINAL CONSUMPTION EXPENDITURE, ANNUAL GROWTH (%), NIGERIA, 2017 - 2022
- Figure 6:
- POPULATION DISTRIBUTION BY MAJOR CITY, COUNT, NIGERIA, 2022
- Figure 7:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, NIGERIA, 2022
- Figure 8:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, NIGERIA, 2017 – 2022
- Figure 9:
- CONSUMER PRICE INFLATION RATE, %, NIGERIA, 2017 - 2022
- Figure 10:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, NIGERIA, 2017 - 2027
- Figure 11:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, NIGERIA, 2022
- Figure 12:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, NIGERIA, 2017 - 2022
- Figure 13:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, NIGERIA, 2022
- Figure 14:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, NIGERIA, 2017 – 2022
- Figure 15:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, NIGERIA, 2022
- Figure 16:
- VALUE OF EXPORTS, USD, NIGERIA, 2017 - 2022
- Figure 17:
- VALUE OF IMPORTS, USD, NIGERIA, 2017 - 2022
- Figure 18:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, NIGERIA, 2017 - 2022
- Figure 19:
- RANK OF LOGISTICS PERFORMANCE, RANK, NIGERIA, 2010 - 2023
- Figure 20:
- LENGTH OF ROADS, KM, NIGERIA, 2017 - 2022
- Figure 21:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, NIGERIA, 2022
- Figure 22:
- SHARE OF ROAD LENGTH BY ROAD CLASSIFICATION, %, NIGERIA, 2022
- Figure 23:
- RAIL LENGTH, KM, NIGERIA, 2017 - 2022
- Figure 24:
- CONTAINERS HANDLED AT MAJOR PORTS, TWENTY-FOOT EQUIVALENT UNITS (TEUS), NIGERIA, 2022
- Figure 25:
- CARGO WEIGHT HANDLED AT MAJOR AIRPORTS, TONS, NIGERIA, 2022
- Figure 26:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 27:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 28:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 29:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, USD, NIGERIA 2017 - 2030
- Figure 30:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2017 - 2030
- Figure 31:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2017 - 2030
- Figure 32:
- VOLUME OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 33:
- VALUE OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 34:
- VALUE SHARE OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 35:
- VOLUME OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 36:
- VALUE OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 37:
- VALUE SHARE OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 38:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 39:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, USD, NIGERIA 2017 - 2030
- Figure 40:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, %, NIGERIA, 2017 - 2030
- Figure 41:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, %, NIGERIA, 2017 - 2030
- Figure 42:
- VOLUME OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 43:
- VALUE OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 44:
- VALUE SHARE OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 45:
- VOLUME OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 46:
- VALUE OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 47:
- VALUE SHARE OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 48:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 49:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, USD, NIGERIA 2017 - 2030
- Figure 50:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, %, NIGERIA, 2017 - 2030
- Figure 51:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, %, NIGERIA, 2017 - 2030
- Figure 52:
- VOLUME OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 53:
- VALUE OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 54:
- VALUE SHARE OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 55:
- VOLUME OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 56:
- VALUE OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 57:
- VALUE SHARE OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 58:
- VOLUME OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 59:
- VALUE OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 60:
- VALUE SHARE OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 61:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 62:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, USD, NIGERIA 2017 - 2030
- Figure 63:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, %, NIGERIA, 2017 - 2030
- Figure 64:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, %, NIGERIA, 2017 - 2030
- Figure 65:
- VOLUME OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 66:
- VALUE OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 67:
- VALUE SHARE OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 68:
- VOLUME OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 69:
- VALUE OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 70:
- VALUE SHARE OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 71:
- VOLUME OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 72:
- VALUE OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 73:
- VALUE SHARE OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 74:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 75:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, USD, NIGERIA 2017 - 2030
- Figure 76:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, %, NIGERIA, 2017 - 2030
- Figure 77:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, %, NIGERIA, 2017 - 2030
- Figure 78:
- VOLUME OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 79:
- VALUE OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 80:
- VALUE SHARE OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 81:
- VOLUME OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 82:
- VALUE OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 83:
- VALUE SHARE OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 84:
- VOLUME OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 85:
- VALUE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 86:
- VALUE SHARE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2022 VS 2030
- Figure 87:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, NUMBER OF PARCELS, NIGERIA 2017 - 2030
- Figure 88:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, USD, NIGERIA 2017 - 2030
- Figure 89:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2017 - 2030
- Figure 90:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, NIGERIA, 2017 - 2030
- Figure 91:
- VOLUME OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 92:
- VALUE OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 93:
- VALUE SHARE OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 94:
- VOLUME OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 95:
- VALUE OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 96:
- VALUE SHARE OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 97:
- VOLUME OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 98:
- VALUE OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 99:
- VALUE SHARE OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 100:
- VOLUME OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 101:
- VALUE OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 102:
- VALUE SHARE OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 103:
- VOLUME OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 104:
- VALUE OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 105:
- VALUE SHARE OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 106:
- VOLUME OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 107:
- VALUE OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 108:
- VALUE SHARE OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 109:
- VOLUME OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, NIGERIA, 2017 - 2030
- Figure 110:
- VALUE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, NIGERIA, 2017 - 2030
- Figure 111:
- VALUE SHARE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, NIGERIA, 2022 VS 2030
- Figure 112:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, NIGERIA, 2022
- Figure 113:
- MOST ADOPTED STRATEGIES, COUNT, NIGERIA, 2022
- Figure 114:
- VALUE SHARE OF MAJOR PLAYERS, %, NIGERIA 2022
Nigeria Courier, Express, and Parcel (CEP) Industry Segmentation
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.
- The CEP value is expected to record a CAGR of 7.99% from 2023 to 2029. In Nigeria, self-service lockers are being implemented to handle domestic and international parcel deliveries. Registered individuals and companies can use SmartParcel to drop parcels and paperwork at a local smart locker run by a company franchisee. SmartParcel's delivery partners then deliver the items to a locker close to the receiver or any locker the consignee requests. The items can also be delivered directly to the recipients' residences or places of business by courier partners. As part of this plan, SmartParcel signed an agreement with the Nigerian Postal Service to install smart lockers in post offices across Nigeria's 774 local government areas in 2022. The aim is to set up 10,000 lockers via a franchise model wherein users and corporate entities can own lockers and monitor activities from a dashboard.
- The freight and logistics market developed rapidly during the review period, led by the growing volumes of CEPs. As of 2022, Kobo360, a logistics company in Nigeria (Lagos) launched in 2016, had the highest number of employees compared to other logistics companies in the country. The company has over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
- In 2021, Nigerian Postal Services generated NGN 3.63 billion (USD 4 million). EMS-SpeedPost generated the highest income of NGN 1.27 billion (USD 1.7 million), accounting for 35.14% of the total revenue generated for the year. The volume of CEPs in the country is projected to rise due to growing e-commerce, which is expected to reach about USD 10.11 billion by 2027.
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 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’s 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’s 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’s 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’s 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’s hub, it is then sorted and transported further until it reaches the customer’s 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’s 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 | Multi-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 of 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
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms