United States Short Haul Road Freight Transport Market Size
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 150.65 Billion |
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Market Size (2030) | USD 182.54 Billion |
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Largest Share by End User Industry | Manufacturing |
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CAGR (2024 - 2030) | 3.25 % |
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Fastest Growing by End User Industry | Wholesale and Retail Trade |
Major Players |
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*Disclaimer: Major Players sorted in alphabetical order. |
United States Short Haul Road Freight Transport Market Analysis
The United States Short Haul Road Freight Transport Market size is estimated at 150.65 billion USD in 2024, and is expected to reach 182.54 billion USD by 2030, growing at a CAGR of 3.25% during the forecast period (2024-2030).
150.65 Billion
Market Size in 2024 (USD)
182.54 Billion
Market Size in 2030 (USD)
2.54 %
CAGR (2017-2023)
3.25 %
CAGR (2024-2030)
Largest Market by Destination
93.04 %
value share, Domestic, 2023
In 2022, the value of goods moved less than 100 miles was around 29.9%, whereas in 2021, the value of goods moved less than 100 miles stood at 29.7%.
Largest Market by End User Industry
36.88 %
value share, Manufacturing, 2023
The adoption of Industry 4.0 technologies like artificial intelligence (AI), robotics, and automation, driving the growth of the end-user industry in the US.
Fastest Growing Market by End User Industry
3.74 %
Projected CAGR, Wholesale and Retail Trade, 2024-2030
The segment is expected to increase in the coming years, supported by the growth in e-commerce sales. The number of online buyers in the United States is projected to reach 291.2 million in 2025, up from 263 million in 2021.
Fastest Growing Market by Destination
3.68 %
Projected CAGR, International, 2024-2030
Cross-border e-commerce has been a significant driver for the segment. For instance, online shopping orders from international retailers accounted for approximately 3% of retail e-commerce revenue in the United States in 2022.
First Leading Market Player
1.42 %
market share, FedEx, 2022
FedEx Freight operates around 400 service centers, mainly in the United States. The company operates with more than 46,000 employees and 25,000 motorized vehicles.
US rice exports set projected 4.8% growth by 2032, fueling short-haul freight
- From 2022 to 2025, a consistent expansion in the US construction industry is projected, with an annual growth rate anticipated to fall between 3.4% and 4.5%. This upswing is expected to be driven by substantial investments in critical infrastructure domains such as transportation, electricity, and broadband. Short-haul trucking assumes a crucial role in ensuring a steady flow of essential construction materials like concrete, aggregates, lumber, and steel to construction sites. A prominent player in this landscape is United Rentals Inc., a leading provider of construction and industrial equipment.
- In 2021, the manufacturing end-user segment of the US short-haul road freight transport market saw expansion. This was attributed to the recovery of the manufacturing sector from the COVID-19 downturn and the robust demand for goods driving the US economy. In November 2021, US factory production hit its highest point in nearly three years, with output rising across all sectors and significantly benefiting the overall economy. Motor vehicle production experienced a YoY increase of 3.96%, reaching a total of 9.17 million units in 2021.
- The agriculture, fishing, and forestry segment of the short-haul road freight transport market is anticipated to witness growth over the coming years. This projection is rooted in the US prospective ascent to become the fifth-largest global exporter of rice, reaching a volume of 3.1 million tons by the period of 2031-2032. Notably, exports are poised to expand by 4.8% from 2022-2023 to 2031-2032. Additionally, against a backdrop of supply chain deficiencies and escalating consumer demand, inflation is poised to wield significant influence over the agricultural economy of the United States in the upcoming years.
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United States Short Haul Road Freight Transport Market Trends
The US dominates with 86% of regional GDP contribution, fueled by an infrastructure program that boosts ports and supply chains
- During the third quarter of 2022, the GDP of the transportation sector in the United States expanded from USD 536.40 billion in the second quarter to USD 550.40 billion due to heightened international trade activities propelling this growth. The intricate transportation and storage infrastructure network within the United States is a sophisticated mechanism to facilitate the movement of goods, individuals, and information across the nation. In 2022, the US government strategically allocated its federal spending on transportation and infrastructure, apportioning 39% toward highways, 28% to rail and mass transit, 22% to air travel, and 9% to water transportation.
- In 2021, the transportation services sector, valued at USD 1.9 trillion, constituted 8.4% of the GDP. This sector demonstrated a strong recovery, achieving a YoY growth rate of 12.34% in its contribution to the GDP. This growth encompasses various aspects of transportation, including for-hire, in-house, and household contributions, all amounting to a combined total value of USD 642.60 billion.
- In 2022, the US Department of Transportation revealed the Port Infrastructure Development Program by the Maritime Administration, securing over USD 703 million dedicated to bolstering 41 projects spanning 22 states and a territory. The primary goal of these initiatives is to amplify the capabilities of port facilities. The allocated funds are poised to enhance the dependability of supply chains by amplifying port capacity and durability, optimizing operational processes, reducing emissions originating from ports, and generating fresh job prospects within coastal seaports, Great Lakes ports, and inland river ports.
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The United States remained a net crude oil importer in 2022, importing about 6.28 million bpd of crude oil from 80 countries
- The price of gasoline has declined by 3.44% YoY and reached 0.847 USD/liter in 2022. In 2022, total petroleum exports were about 9.58 million barrels per day (b/d), and total petroleum imports were about 8.32 million b/d, making the United States an annual net total petroleum exporter for the third year in a row. Although the total annual petroleum exports of the United States were greater than total petroleum imports in 2020, 2021, and 2022, the United States still imported some crude oil and petroleum products from other countries to help supply domestic demand for petroleum and to supply international markets. The United States remained a net crude oil importer in 2022, importing about 6.28 million b/d of crude oil from 80 countries. Some of the crude oil that the United States imports is refined by US refineries into petroleum products such as gasoline, heating oil, diesel fuel, and jet fuel.
- The prices of diesel witnessed the maximum YoY growth rate of 29.16% in 2022 and reached 1.24 USD/liter. Unlike gas and jet fuel, demand for diesel recovered at a much faster pace from the pandemic. Diesel is used for transporting goods as well as powering construction, farming, and military vehicles and equipment.
- Many western states faced higher gas prices because of limited refining capacity. However, several refinery accidents throughout the year caused spikes in other regions as well. The average diesel fuel consumption in the United States amounted to around 3.85 million barrels daily in June 2023. Greater demand for North American diesel by Europe in the wake of the war in Ukraine kept diesel prices high.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The US economy is driven by bricks and mortar stores, with a share of 70% in overall retail sales
- The number of e-commerce users in the United States is expected to reach 289.9 million by 2027 from 264.5 million in 2021
- US boosts highway investment by 55% to improve infrastructure, targeting supply chain efficiency by 2026
- The United States is expected to remain the top exporter of petroleum products through 2050
- Rise in fuel prices registered in 2022 and H1 2023 owing to the Russia-Ukraine War, with a marginal decline in prices since H2 2023
- Commercial truck sales in the United States increased by 3.8% in 2022, up from 2021, totaling 476,000 units
- Growing exports and imports of petroleum along with growing truck driver wages driving road freight pricing in US
- The residue impact of the economic shutdown on global supply chains largely led to an increase in food and energy prices
- Agriculture, fishing, and forestry registered tremendous growth during the review period despite a reduction in the number of farms in 2022 in the United States
- The US manufacturing sector expanded by 12% YoY in 2022, led by the chemical and chemical products sub-segment
- Road infrastructure investments under the Bipartisan Infrastructure Law (2022-2026) focus on repairing existing roads and launching new road projects
- US retail imports are anticipating slowdown driven by supply chain challenges in 2023
- Commercial vehicle production and demand following a wave pattern owing to the adoption of electric vehicles in operating fleets in the country
- Investment in infrastructure worth USD 550 billion by 2026, to boost road freight volumes in the United States
- The volume of freight activity in the United States is expected to grow by 50% in terms of tonnage between 2020 and 2050
United States Short Haul Road Freight Transport Industry Overview
The United States Short Haul Road Freight Transport Market is fragmented, with the top five companies occupying 5.36%. The major players in this market are FedEx, Knight-Swift Transportation Holdings Inc., Landstar System Inc., Schneider National, Inc. and XPO, Inc. (sorted alphabetically).
United States Short Haul Road Freight Transport Market Leaders
FedEx
Knight-Swift Transportation Holdings Inc.
Landstar System Inc.
Schneider National, Inc.
XPO, Inc.
Other important companies include CMA CGM Group, DHL Group, PS Logistics, Ryder System, Inc., United Parcel Service of America, Inc. (UPS).
*Disclaimer: Major Players sorted in alphabetical order.
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United States Short Haul Road Freight Transport Market News
- October 2023: Ryder Systems continues to expand its multiclient warehouse network, adding a 400,000-square-foot distribution center in Aurora, Ill. The newly built facility is the latest addition to a now six-building campus totaling 2.4 million square feet, primarily serving shippers of consumer packaged goods (CPG), including food and beverage, food ingredients, health and beauty, household products, and general retail merchandise.
- September 2023: UPS has entered into an agreement to acquire MNX Global Logistics (MNX), a global time-critical logistics provider. MNX’s capabilities in radio-pharmaceuticals and temperature-controlled logistics will help UPS’ healthcare segment and clinical trial logistics subsidiary Marken meet the growing demand for these services. The transaction is expected to close by the end of the year.
- September 2023: Ryder Systems announced the deployment of its first BrightDrop Zevo 600 electric vans at four strategic Ryder facilities in California, Texas, and New York. Earlier in 2023, Ryder announced plans to introduce 4,000 BrightDrop electric vans to its fleet through 2025, with the first 200 ordered this year. With a cargo capacity of 615 cubic feet, BrightDrop’s electric light commercial van offers the benefits of an electric powertrain with ample cargo space.
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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.
United States Short Haul Road Freight Transport 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. 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. CMA CGM Group
4.4.2. DHL Group
4.4.3. FedEx
4.4.4. Knight-Swift Transportation Holdings Inc.
4.4.5. Landstar System Inc.
4.4.6. PS Logistics
4.4.7. Ryder System, Inc.
4.4.8. Schneider National, Inc.
4.4.9. United Parcel Service of America, Inc. (UPS)
4.4.10. XPO, Inc.
5. KEY STRATEGIC QUESTIONS FOR ROAD FREIGHT CEOS
6. APPENDIX
6.1. Global Logistics Market 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 (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 %, UNITED STATES, 2022
- Figure 2:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, UNITED STATES, 2017 – 2022
- Figure 3:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, UNITED STATES, 2017 - 2027
- Figure 4:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, UNITED STATES, 2022
- Figure 5:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, UNITED STATES, 2017 - 2022
- Figure 6:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, UNITED STATES, 2022
- Figure 7:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, UNITED STATES, 2017 – 2022
- Figure 8:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, UNITED STATES, 2017-2022
- Figure 9:
- RANK OF LOGISTICS PERFORMANCE, RANK, UNITED STATES, 2010 - 2023
- Figure 10:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, UNITED STATES, 2022
- Figure 11:
- SHARE OF ROAD LENGTH BY SURFACE CLASSIFICATION, %, UNITED STATES, 2022
- Figure 12:
- VALUE OF EXPORTS, USD, UNITED STATES, 2017 - 2022
- Figure 13:
- VALUE OF IMPORTS, USD, UNITED STATES, 2017 - 2022
- Figure 14:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, UNITED STATES, 2017 - 2022
- Figure 15:
- OPERATIONAL COSTS OF TRUCKING - BREAKDOWN BY OPERATING COST ELEMENT, %, UNITED STATES, 2022
- Figure 16:
- TRUCKING FLEET SIZE BY TYPE, SHARE %, UNITED STATES, 2022
- Figure 17:
- MARKET SHARE OF MAJOR TRUCK SUPPLIER BRANDS, SHARE %, UNITED STATES, 2022
- Figure 18:
- FREIGHT HANDLED BY ROAD TRANSPORT, TONS, UNITED STATES, 2017 - 2030
- Figure 19:
- PRICE TREND OF ROAD FREIGHT TRANSPORT SERVICE, USD/TON-KM, UNITED STATES, 2017 - 2022
- Figure 20:
- MODAL SHARE OF FREIGHT TRANSPORTATION SECTOR, SHARE % BY TON-KM, UNITED STATES, 2022
- Figure 21:
- MODAL SHARE OF FREIGHT TRANSPORT SECTOR, SHARE % BY TONS, UNITED STATES, 2022
- Figure 22:
- WHOLESALE PRICE INFLATION RATE, %, UNITED STATES, 2017 - 2022
- Figure 23:
- CONSUMER PRICE INFLATION RATE, %, UNITED STATES, 2017 - 2022
- Figure 24:
- VOLUME OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 25:
- VALUE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 26:
- VOLUME OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, TON-KM, UNITED STATES, 2017 - 2030
- Figure 27:
- VALUE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, USD, UNITED STATES, 2017 - 2030
- Figure 28:
- VALUE SHARE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY END USER INDUSTRY, %, UNITED STATES, 2017 - 2030
- Figure 29:
- VOLUME OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 30:
- VALUE OF AGRICULTURE, FISHING, AND FORESTRY INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 31:
- VOLUME OF CONSTRUCTION INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 32:
- VALUE OF CONSTRUCTION INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 33:
- VOLUME OF MANUFACTURING INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 34:
- VALUE OF MANUFACTURING INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 35:
- VOLUME OF OIL AND GAS, MINING AND QUARRYING INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 36:
- VALUE OF OIL AND GAS, MINING AND QUARRYING INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 37:
- VOLUME OF WHOLESALE AND RETAIL TRADE INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 38:
- VALUE OF WHOLESALE AND RETAIL TRADE INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 39:
- VOLUME OF OTHERS INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 40:
- VALUE OF OTHERS INDUSTRY SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 41:
- VOLUME OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, TON-KM, UNITED STATES, 2017 - 2030
- Figure 42:
- VALUE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, USD, UNITED STATES, 2017 - 2030
- Figure 43:
- VALUE SHARE OF SHORT HAUL ROAD FREIGHT TRANSPORT MARKET BY DESTINATION, %, UNITED STATES, 2017 - 2030
- Figure 44:
- VOLUME OF DOMESTIC SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 45:
- VALUE OF DOMESTIC SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 46:
- VOLUME OF INTERNATIONAL SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, TON-KM, UNITED STATES, 2017 - 2030
- Figure 47:
- VALUE OF INTERNATIONAL SHORT HAUL ROAD FREIGHT TRANSPORT MARKET, USD, UNITED STATES, 2017 - 2030
- Figure 48:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, UNITED STATES, 2017 - 2023
- Figure 49:
- MOST ADOPTED STRATEGIES, COUNT, UNITED STATES, 2017 - 2023
- Figure 50:
- VALUE SHARE OF MAJOR PLAYERS, %, UNITED STATES 2022
United States Short Haul Road Freight Transport 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.
- From 2022 to 2025, a consistent expansion in the US construction industry is projected, with an annual growth rate anticipated to fall between 3.4% and 4.5%. This upswing is expected to be driven by substantial investments in critical infrastructure domains such as transportation, electricity, and broadband. Short-haul trucking assumes a crucial role in ensuring a steady flow of essential construction materials like concrete, aggregates, lumber, and steel to construction sites. A prominent player in this landscape is United Rentals Inc., a leading provider of construction and industrial equipment.
- In 2021, the manufacturing end-user segment of the US short-haul road freight transport market saw expansion. This was attributed to the recovery of the manufacturing sector from the COVID-19 downturn and the robust demand for goods driving the US economy. In November 2021, US factory production hit its highest point in nearly three years, with output rising across all sectors and significantly benefiting the overall economy. Motor vehicle production experienced a YoY increase of 3.96%, reaching a total of 9.17 million units in 2021.
- The agriculture, fishing, and forestry segment of the short-haul road freight transport market is anticipated to witness growth over the coming years. This projection is rooted in the US prospective ascent to become the fifth-largest global exporter of rice, reaching a volume of 3.1 million tons by the period of 2031-2032. Notably, exports are poised to expand by 4.8% from 2022-2023 to 2031-2032. Additionally, against a backdrop of supply chain deficiencies and escalating consumer demand, inflation is poised to wield significant influence over the agricultural economy of the United States in the upcoming years.
| 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 influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Major Truck Suppliers - Market share of truck brands is influenced by factors like geographical preferences, portfolio of truck types, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological innovations (like electric vehicles, digitalization, autonomous trucks), fuel efficiency, financing options, annual maintenance costs, availability of substitutes, marketing startegies etc. Hence, the distribution (share % for base year of the study) of truck sales volume for leading truck brands and commentary on current market scenario & market anticipation over the forecast period have been presented in this industry trend.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry players, on road freight transport service. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Modal Share - Freight Modal Share is influenced by factors like modal productivity, government regulations, containerization, distance of shipment, temperature control requirements, type of goods, international trade, terrain, speed of delivery, shipment weight, bulk shipments, etc. Also, modal share by tonnage (tons) and modal share by freight turnover (ton-km) differ as per average distance of shipments, weight of major commodity groups transported in the economy and number of trips. This industry trend represents the distribution of freight transported by mode of transport (tons as well as ton-km), for the study base year.
- Oil and Gas, Mining and Quarrying - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the extraction industry players, on road freight transport service. The end user players considered are the establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Logistics Service Providers (LSPs) covers entire phases from upstream to downstream and plays a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the financial services (BFSI), real estate, educational services, healthcare, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on road freight transport service. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files, movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment) to name a few.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Road Freight Pricing Trends - Freight pricing by mode of transport (USD/tonkm), over the review period, has been presented in this industry trend. The data has been used in assessing the inflationary environment, impact on trade, freight turnover (tonkm), road freight transport market demand and hence the road freight transport market size.
- Road Freight Tonnage Trends - Freight tonnage (weight of goods in tons) handled by mode of transport, over the review period, has been presented in this industry trend. The data has been used as one of the parameters apart from average distance per shipment (km), freight volume (tonkm), and freight pricing (USD/tonkm) to assess the freight transport market size.
- Road Freight Transport - Hiring a road freight transport logistics service provider (LSP) or haulier (outsourced logistics), for the transport of commodities constitutes road freight transport market. The scope of study includes (i) road transport of goods reported by hauliers registered in the reporting countries (ii) transport of raw materials or manufactured goods (solids as well as fluids) (iii) transport using commerical motor vehicles (rigid trucks or tractor-trailers, (iv) Full-Truck-Load (FTL) or Less than-Truck-Load (LTL) transport (v) containerized or non-containerized transport (vi) temperature controlled or non-temperature controlled trasnport, (vii) short haul or long haul (Over-the-road, OTR) transport, (viii) used office or household goods transport (movers and packers), (ix) other specialized cargo transport (dangerous goods, oversized cargo) and (x) outsourced first mile/ middle mile/last mile delivery shipments undertaken by road freight transport players. The scope does not include (i) transport undertaken by hauliers registered in other countries (ii) last mile meal delivery market (iii) grocery delivery market (iv) transportation via road network undertaken/ reported by Courier, Express, and Parcel (CEP) players.
- Road Length - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), have been analysed and presented in this industry trend.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the road freight transport market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Short Haul Road Freight Transport - The segment captures the external (outsourced) logistics expenditure incurred by the road freight transport service end users on local trucking (less than 100 miles). It includes the road transport of goods (i) within a single administrative area and its hinterland, (ii) by smaller trucks and pickup trucks (iii) via containerized as well as dry bulk services (iv) intermodal from ports, container terminals or airports, and (v) outsourced first mile/ last mile delivery shipments undertaken by road freight transport players.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size, and hence road freight transport market size. Therefore, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Trucking Fleet Size By Type - Market share of truck types is influenced by factors like geographical preferences, major end user industries, truck prices, local production, truck repair & maintenance service peneteration, customer support, technological disruptions (like electric vehicles, digitalization, autonomous trucks) etc. Hence, the distribution (share % for base year of study) of truck parc volume by type of truck, market disruptors, truck manufacturing investments, truck specifications, truck use & import regulations, and market anticipation over the forecast period have been presented in this industry trend.
- Trucking Operational Costs - The prime reasons for measuring/ benchmarking logistics performance of any trucking company are to reduce operational costs and increase profitability. On the other hand, measuring operational costs helps to identify whether and where to make operational changes to control expenses and identify areas for improved performance. Hence, in this industry trend, trucking operational costs and the variables involved viz. driver wages & benefits, fuel prices, repairs & maintenance costs, tyre costs etc. have been studied over the base year of study, and presented for the geography studied (country or region as per the scope of report).
- Wholesale and Retail Trade - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, on road freight transport service. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Cabotage | Road transport by a motor vehicle registered in a country performed on the national territory of another country. |
| Cross Docking | Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The name ‘cross docking’ explains the process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. |
| Cross Trade | International road transport between two different countries performed by a road motor vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and than the country of unloading/disembarkation. |
| Dangerous Goods | The classes of dangerous goods carried by Road are those defined by the fifteenth revised edition of the UN Recommendations on the Transport of Dangerous Goods, United Nations, Geneva 2007. They include Class 1: Explosives; Class 2: Gases; Class 3: Flammable Liquids; Class 4: Flammable solids- substances liable to spontaneous combustion; substances which, on contact with water, emit flammable gases; Class 5: Oxidizing substances and organic peroxides; Class 6: Toxic and infectious substances; Class 7: Radioactive material and Class 8: Corrosive substances, Class 9: Miscellaneous dangerous substances and articles. |
| Direct Shipment | Direct shipment is a method of delivering goods from the supplier or the product owner to the customer directly. In most cases, the customer orders the goods from the product owner. This delivery scheme reduces transportation and storage costs, but requires additional planning and administration. |
| Drayage | A drayage is a form of trucking service that connects the different modes of shipping (intermodal), such as ocean freight or air freight. It’s a short-haul trip that transports goods from one place to another, usually before or after its long-haul shipping process. Drayage trucks move cargo to and from various destinations, such as container ships, storage lots, order fulfillment warehouses, and rail yards. Typically, drayage only transports goods in short distances and operates only in one metropolitan area. It also requires only one trucker in a single shift. But despite this, but it plays an important role in long-haul shipping because it gets the goods to the cargo and vice versa. It makes intermodal transport much more efficient and enables the seamless transfer of goods to the end customer. |
| Dry van | A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers). |
| Final Demand | Final demand includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. includes all types of commodities (goods as well as services) consumed as final use and might include personal consumption, or consumption by government, by businesses as capital investment, and as exports. |
| Flatbed Truck | A flatbed truck is a type of truck with rigid design. It has a back body that is flatly shaped for easy loading and unloading of goods. The flatbed truck is mostly used to transport heavy, oversized, wide and indelicate goods such as machinery, building supplies or equipment. Due to the truck open body, the goods transported with it must not be vulnerable to rain. By functionality, the flatbed truck is comparable to a flatbed trailer. |
| Inbound Logistics | Inbound logistics is the way materials and other goods are brought into a company. This process includes the steps to order, receive, store, transport and manage incoming supplies. Inbound logistics focuses on the supply part of the supply-demand equation. |
| Intermediate Demand | Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment. |
| International Loaded | Place of loading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of unloading in a different country. |
| International Unloaded | Place of unloading of goods in reporting country (i.e., country in which the vehicle performing the transport is registered) and place of loading in a different country. |
| OOG cargo | Out of Gauge (OOG) cargo is any cargo that can not be loaded into six-sided shipping containers simply because it is too large. The term is a very loose classification of all cargo with dimensions beyond the maximum 40HC container dimensions. That is a length beyond 12.05 meters – a width beyond 2.33 meters – or a height beyond 2.59 meters. |
| Pallets | Raised platform, intended to facilitate the lifting and stacking of goods. |
| Part load | A part load describes goods which only fills a truck partially. In essence, the quantity of the shipment is bigger than the Less Than Truckload (LTL) shipment. Also, the shipment cannot fully occupy a truck i.e. its capacity is much lower than a Full Truckload (FTL) shipment. |
| Paved Road | Road surfaced with crushed stone (macadam) with hydrocarbon binder or bituminized agents, with concrete or with cobblestone. |
| Reverse Logistics | Reverse logistics comprises of the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. |
| Road Freight Transport Service | Hiring a trucking agency for transport of commodities (raw materials or manufactured goods including both solids and liquids) form the origin to a destination within the country (domestic) or cross-border (international) constitutes road freight transport market. The service might be Full-Truck-Load or Less than-Truck-Load, containerized or non-containerized, temperature controlled or non temperature controlled, short haul or long haul. |
| Tautliner vehicle | Tautliner and curtainsider are used as generic names for curtain sided trucks/trailers. The curtains are permanently fixed to a runner at the top and detachable rails/poles at front and rear, allowing the curtains to be drawn open and forklifts used all along the sides for easy and efficient loading and unloading. When closed for travel, vertical load restraint straps are attached to a rope rail beneath the truck bed, connecting the truck bed and curtain along both sides. Winches at either end of the curtain tension it, hence the 'Tautliner' name. This stops the curtain from flapping or drumming in the wind and can also help retain light loads from slipping sideways. |
| Transport for hire or reward | The carriage for remuneration of goods. |
| Unpaved Road | Road with a stabilized base not surfaced with crushed stone, hydrocarbon binder or bituminized agents, concrete or cobblestone. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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