Market Trends and Needs in Logistics Industry in the Philippines

The logistics industry and freight market in the Philippines is segmented by the Function. There is freight transport, warehousing, freight forwarding, cold chain logistics, and value-added services. It is also segmented by the end-user.

The logistics market that is segmented by the end-user includes manufacturing and automotive, oil and gas and quarrying, construction, agriculture, and distributive trade which includes retail and wholesale segments.

The Philippines’ Logistics and Freight Market Overview

The market of logistics and freight in the Philippines is expected to grow. Along with the new web technologies that are introduced to the Philippines as well as the E-commerce operations that are surging, the last mile logistics becomes more popular in the Philippines today.

Many warehousing and distribution centers in this country are turning to robotics and new technology in order to help increase the overall productivity, efficiency, and accuracy in the near future. Besides, the National logistics master plan has been introduced to advance competitiveness.

The country’s competitiveness can be advanced through the efficient logistics and transport establishment that is going to contribute towards the resilient and robust economy of the Philippines.

Key Market Trends in the Philippines’ Logistics Industry

According to the World Economic Forum, the Philippines is 96th out of 141 countries for infrastructure quality. In order to improve the infrastructure of the transport, the Government set up the long scheme of spending 9 trillion pesos on the new infrastructure named “Build, Build, Build” program.

Currently, the Philippines’ government is running the program by accelerating several infrastructure projects. Among the projects, there are 3 bus rapid transits, 6 airports, 4 seaports, 9 railways, and also 32 bridges and roads. Also, there is going to be a Public Utility Vehicle Modernization Program.

This PUVMP is the Philippines’ government initiative in order to improve the country’s transportation system.

Competitive Logistics Company in the Philippines

The Philippines’ logistics and freight market competition is highly fragmented with the presence of international and local logistics service providers. Some major players exist in the market are FedEx,  DHL, UPS, XPO Logistics, Yusen Logistics, TNT, Lorenzo Shipping Corporation, PHL Post, and more.

The warehousing and logistics market in the Philippines has evolved in recent years along with the trade activities that also increase in this country. Some sectors including the electronic products, automotive industry, accessories and apparel, pharmaceuticals and chemicals are driving the industry.

Express Delivery is Booming in the Philippines

Since the internet reach expands to many more areas in the Philippines, there is growth in the Philippines’ e-commerce industry. About 76 million or 71% of the population in this country are active internet users. And 70% of them are active online shoppers.

With this developing e-commerce sector, there is an increase in the needs of goods delivery that is more efficient. The result is the development of the express delivery market as well as e-commerce in the Philippines.

The Philippines love quality express delivery and logistics industry that offers the services for mails. Documents, couriers, and parcels at the premium price and deliver faster.  

Author: Franky Alberto

Hello, welcome to my blog. My name is Franky Alberto. I come from the USA, but I'm a bit of Italian. I love to write everything about industry, and business. Because currently, I'm working at business consulting in Japan. So guys, thank you for come and read my articles. Hope you enjoy it and improve your market research skill for your business.

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