Challenges and Opportunities of Logistic in the Philippines

Compared to the other ASEAN countries, the market of logistic in the Philippines is less mature and less progressive. Malaysia and Singapore’s logistic market is much more mature than the Philippines. But the Philippines’ logistic market still has great potential since it offers opportunities for the investors.

This country needs to grow and scale up so that its logistic market can be equal and even more mature than the logistic market in Singapore. Investors today are looking for better investments that can provide higher yields, about 12%.

The Obvious Opportunities of Logistic in the Philippines

The Philippines has bright prospects in economics. This country also has an expanding population in which most of them are well educated, young, and english literate consumers. The population of the country spread across over 7,000 islands.

The details above show that the Philippines is presenting the growing need, especially for the efficient service goods, transport system, and service delivery. The demand for quality products and fresh foods is also increasing and resulting from the spending power of the population that is getting greater.

Challenges Faced by the Logistic Segments in the Philippines

Cold chain is the first challenge that is faced by the Philippines’ logistic market. The Philippines’ growing population is creating the need for more facilities of cold storage all around this country. It means there are opportunities for the integrated systems of the cold chain.

The consignees must also update the systems in order to make sure that there is alignment in the processes and systems. The updated systems will also avoid any unnecessary truck and spoilage congestion. There are always opportunities behind every challenge in the logistics industry.

Opportunities Behind the Distribution and Packaging Challenges

Another challenge faced by the logistics industry in the Philippines is the high risks or spoilage in moving the perishable cargo when the product is being moved between the farm and the market. It reflects the importance of the modern equipment, transport system, and packaging.

It is important to invest in modern and upgraded packaging facilities especially in the major areas where products are produced, such as in Mindanao, Tagaytay, and Baguio. There is also opportunity in the delivery and distribution, such as inventing the new and more innovative ways in delivering goods.

It can include using the motorcycles in the high traffic areas in order to deliver carton sized goods. Bigger vessels can also be used to ship the goods more economically.

Logistic in the Philippines’ Domestic Shipping Opportunity 

The future of domestic shipping in the Philippines hinges on the better facilities in the port, the newer and bigger vessels, as well as the more reliable deliveries that can deliver the goods on time. Based on the Philippines market research, domestic shipping can be a huge challenge and opportunity at once.

The domestic shipping industry needs much greater competition compared to the market consolidation. Domestic shipping industry must be able to make the rates become more competitive. Lowering taxes can also help the companies to boost competitiveness in domestic platforms and international ones.

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