Philippines Logistics and Freight Forwarding Industry Future Outlook to 2027-COVID-19 Impact Assessment

Overview

Executive Summary

Market Performance: The logistics market in the Philippines has evolved in recent years as a result of rising globalisation, which is one of the key driving factors responsible for the market's growth. Although the Philippines' logistics market is not yet mature in comparison to its more mature Asian neighbors such as Singapore and Malaysia, the potential remains high because the market offers numerous opportunities for foreign investors. The country's economic growth has fuelled the logistics sector, resulting in a surge in demand for efficient distribution channels. The expansion of export and import activities in the Philippines has aided the growth of the logistics market significantly.

The logistics market in Philippines reached USD XX billion in 2020 as the nation is a trade-oriented country with over 7,600 islands, 2,000 of which are inhabited. As a result, trade in the nation is critical, and transportation and storage are critical. The entire country's operations are concentrated on Luzon Island, with significant congestion at Manila Ports, which are operating at nearly 90% capacity, compared to the ideal capacity of 75%. The Philippines has one of the highest logistics costs in ASEAN.

Covid-19 Impact: Imports from major trading countries such as China and Hong Kong fell, affecting the quantity of road and sea freight transported from other countries to the port of Manila and other parts of the Philippines. The warehouse storage industry saw the spinning of only essential commodities, resulting in a decrease in Picking Revenues. Because of the perishable nature of pork, the cold chain industry is less affected by the increase in imports.

Enhancing Inter-Island Communication: In Philippine RORO RORO facilities are becoming increasingly popular as it reduced time required for ferry transportation as well as a cost savings of nearly 30%. The Philippine Government added numerous smaller projects as portion of the 'Build Build Build' Program while keeping the larger projects, such as connecting brides for Luzon, Cebu, and Visayas, on hold. And over twenty of the fresh program's 100 projects are PPP deals for enhancing Inter- Island communication funded by large corporations such as San Miguel Corporation.

Government Initiatives: In 2017, the Duterte Administration launched the USD 180 billion "Build, Build, Build" (BBB) programme to address the country's mounting infrastructure challenges. Initially, 75 projects totalling USD 48 billion were designated as flagship projects under the intervention. This includes large-scale rail, airport, road, and bridge construction projects across the country. 

Scope of the Study
The following synopsis is based on the report "Philippines Logistics and Freight Forwarding Industry Future Outlook to 2027-COVID-19 Impact Assessment" published by Makreo Research and Consulting Firm. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that gives an understanding of the industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

The report helps readers to gain information on the following areas:

• How Philippines Logistics and Freight Forwarding Industry has performed in the past and what factors are leaving a direct or indirect impact over the change in industry performance?
• What is the present scenario of logistics in Philippines after the virus outbreak and performance during pre-COVID-19 period?
• What are the major driving forces that helped the industry to grow in the past and impact over future performance?
• How market is positioned for Express delivery services and what is the scope in the near future? 
• How market is positioned for 3PL services and what is the scope of development in near future? 
• What is the impact of novel coronavirus over the India logistics and freight forwarding industry including all modes of transportation? 
• What is the contribution of E-commerce in the logistics industry?
• What are the key challenges present in the industry and what driving forces shaping up future demand?
• Who are the leading players in the industry and how are they positioned in the market?