The growth of freight forwarding in Philippines was supported by development in major industries such as manufacturing, retail, wholesale, construction, agriculture and mining. Expanding FMCG sector, retail sector, food and E-commerce industry in the country has attributed to the extraordinary growth of the freight forwarding industry in the country. The Philippines market witnessed the entry of many foreign players as flexible policies were introduced by the government of South Korea to boost economic growth. Entry of new players has further aided the demand in the freight forwarding market.
Logistics market in Philippines was largely dominated by road freight forwarding industry during the review period. Freight transport by road has been mainly utilized for domestic transport of goods and commodities by various industry sectors in the Philippines. In 2017, it was basically followed by water transport and air transport respectively.
By Major Flow Corridors
Asia flow corridor is the largest contributor in terms of revenue in the freight forwarding market. This growth has been attributed on the account of strategic location and trade strategy of various companies trying to expand their operations in other Asia Pacific countries. It was followed by North America, Europe, Middle East and other flow corridors.
By Owned and Rented/3PL Fleet
Owned fleet dominated the Philippines freight forwarding market. It was witnessed that large scale domestic companies majorly prefer to operate through their own fleet. On the other hand, the rented fleet companies were observed to capture the remaining revenue share in the market.
By Delivery Type:
Normal delivery services are generally preferred where there is no urgent requirement for ordered goods. In Philippines, majority of the customers prefer the cheapest form of shipping and are witnessed to wait for longer durations. On the other hand, the demand for express delivery is majorly driven by corporates, C2C and e-commerce customers. The e-commerce companies have been depending on 3PL companies to carter to the need of faster delivery and focus on their core competency which has aided the growth of express delivery segment in Philippines.
Comparative Landscape in the Philippines Freight Forwarding Market
The freight forwarding industry in the country is highly fragmented with the presence of both domestic and international players in the industry. Companies in the Philippines have been focusing towards providing data oriented solutions and other services for operational excellence, timely customer support and the effective adherence of the consumers' expectations, thus providing customer satisfaction and retain customers.
Philippines Freight Forwarding Market Future Outlook and Projections
Over the forecast period, the Philippines will witness construction of many new roads and bridges which will aid against the traffic congestion problem in the country and positively affect the trucking industry, hence aiding the domestic logistics. The freight forwarding industry in the Philippines will continue to dominate the overall logistics market in the coming years. The government of Philippines has initiated a Build Build Build' infrastructure program under which many projects will start construction in 2018 in the cargo transportation industry.
Key Topics Covered in the Report
Transport and Logistics Infrastructure in Philippines Logistics and Warehousing Market