Business Projections for Logistics in the Philippines During the First Quarter of 2023

The business logistics industry in the Philippines has experienced tremendous growth in recent years. This is due to the country’s strategic location, which makes it an ideal hub for logistics companies. 

The industry is also supported by the government, which has implemented various initiatives to help promote the growth of the sector. President Ferdinand “Bongbong” Marcos has been active in pursuing foreign investments. Marcos’ foreign trips this year yielded $23.6 billion of investment pledges, according to the Department of Trade and Industry (DTI) said. The Department of Trade and Industry (DTI) released its end-of-year report that detailed President Marcos' visits to 5 countries: Indonesia, Singapore, the USA, Cambodia & Thailand. This initiative resulted in billions of pesos worth of investments toward promoting foreign businesses in the Philippines.

According to the Department of Trade and Industry's (DTI) performance report, the Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA)'s approved investments amounted to P402 billion. This could create around 54,217 local job opportunities.

As a result, there are now many logistics companies operating in the country, offering a wide range of services such as transportation, warehousing, and distribution. These companies have been instrumental in helping businesses become more efficient and cost-effective when it comes to managing their supply chain operations. With the continued growth of this sector, businesses can look forward to improved customer service and greater cost savings in the future.

Business logistics performance is expected to remain strong in the first quarter of 2023, with many companies continuing to focus on improving efficiency and customer experience. Several industries will benefit from the use of logistics services like import and customs brokerage services. Some of the most popular industries include:

Retail

Retail businesses that import products from other countries for sale in the Philippines can benefit from the use of customs brokerage services to navigate the customs process and ensure that their goods are imported smoothly and efficiently. China is a massive player and more logistics companies have their tie-ups or offices based in the country.

Manufacturing 

Manufacturing companies that rely on imported raw materials or components can benefit from the use of logistics services to manage their supply chain and ensure that their products are delivered on time. Business franchises, and medium-sized to big company conglomerates can benefit from this as they can focus on their day-to-day operations and core competencies in production while they entrust deliveries to logistics companies that have nationwide reach. 

Agriculture 

The agriculture industry in the Philippines can benefit from the use of logistics services to import specialized equipment and supplies, and to export agricultural products to international markets. Insufficient supply or production of agricultural products like onions created a surging price increase in the local market and one immediate remedy was through importation but it follows strict protocols since it is closely monitored by the Department of Agriculture which falls directly under the office of the President as the head of the department.

E-commerce 

The e-commerce industry is rapidly growing in the Philippines and can benefit from the use of logistics services to manage the delivery of goods to customers and to ensure that products are imported and exported smoothly and efficiently. The local distribution is very critical since the Philippines is an archipelago, and there are various ports and coordination to facilitate domestic deliveries.

Healthcare 

The healthcare industry can benefit from the use of logistics services to import medical equipment and supplies and to manage the transportation of patients and medical samples. The most observable was during the importation of COVID-19 vaccines and we are expecting that there are more healthcare units, hospitals, and medicines that will be in demand, particularly in regions outside the main cities of the country.

The Philippine business logistics sector is set to experience a period of growth and development throughout the first quarter of 2023. With the introduction of new technologies and improved infrastructure, businesses can now benefit from faster and more efficient delivery times. This has enabled them to expand their reach and increase their customer base. In addition, new opportunities have arisen for Philippine businesses to collaborate with international partners to take advantage of global markets. As such, we can expect to see a bright outlook for the Philippine business logistics industry in Q1 2023 and beyond.

Ernest Logistics Corporation has had an extensive portfolio of clients for more than 12 years and since it has a Filipino DNA being a local company, it comes with a local mastery of actual operations that is very important as policies or protocols from both local and national government continually evolve for improvements. Ernest Logistics is renowned for providing efficient and cost-effective services, so the new roads/gateways will further enhance the delivery transit. This means more businesses can benefit from this company's services & reap the rewards.

Recently, there have been news reports of several shipments being left behind in port and border crossing areas. This is mainly due to some logistics companies that offer low prices but do not have the required knowledge or experience to handle customs documentation and services properly.

This 2023, more businesses are putting a big stake in importation for more economical reasons and would rely more on logistics services, be wary of those who drop their prices and focus on records of competencies and credibility. Talk to the friendly team of Ernest Logistics, they offer logistics consultation and recommend the most affordable and convenient solutions for your supply management and logistics requirements. You may send an e-mail to ask@ernest.com.ph