Showing posts with label Philippines Logistics Industry. Show all posts
Showing posts with label Philippines Logistics Industry. Show all posts

Friday, May 29, 2020

Philippines Road Freight Market is expected to cross Php 200 Bn by 2024: Ken Research

  • 62% drop in China Import Volumes from Feb 1 to 16th 2020 in comparison to 2019 and $ 300 Mn loss in Export Revenue to China, Thailand, and other countries due to COVID-19 will push the Road freight revenues to have negative growth rate in future.
  • DPWH and DOTr have been allocated PhP 458.6 bn and PhP 55.5 billion respectively to improve road transport not only in major urban cities (i.e. Metro Manila and Metro Cebu), but as well as in other parts of the country such as Mindanao.
  • Government Change in Regulations such as Restrictions on the age of trucks and truck ban on major routes applicable to Heavy-duty trucks will impact the Road freight market
Covid Impact on Trucking Industry in the Philippines: The Imports will fall from major trading countries such as China and Hong Kong affecting the road freight volumes transported from the port of Manila to other parts of The Philippines. The average freight rates will be the same and not fall due to the excise taxes in the Philippines. The trucking will see a negative growth rate in the year 2020 due to the complete lockdown and transportation of only essential commodities but is expected to revive back in 2021.
Better Inter-Island Connectivity by Road: The government has added many smaller projects as a part of ‘Build Build Build’ Program keeping on hold the bigger projects such as linking brides for Luzon, Cebu & Visayas. More than 20 Projects out of 100 under the new list are public-private partnership (PPP) deals for Intra Island Connectivity funded by Big Companies such as San Miguel Corporation. Main exports include electronic and electrical equipment, electrical machines and apparatus, automatic data processing machine, diodes, transistors, electrical transformers, business services computers, and travel.
Adoption of New Technology: Companies have started the adoption of new technologies such as Transport management Software, GPS for real-time tracking assuring transparency to their clients.  Electronic vehicles that are already supported by the government for passenger movement can become a new normal for freight transportation also. Digital Freight brokerage platforms such as Transportify, Ezyhaul, Blackarrow, and many more are used by many companies for short and long hauls solving the problem of empty returns and maintaining their margins. These will become extremely popular in the next 3-5 years.
Analysts at Ken Research in their latest publication “Philippines Road Freight Market Outlook to 2024 – Driven by Government Spending on Road Infrastructure and Technological Advancements” believe that the Road Freight Market in the Philippines is expected to grow due to entrance of private companies in the infrastructure development, Trade Agreements with countries such as China, Europe and more, growing Manufacturing industries and changes in freight laws as per the Road Transport Authorities.
Key Segments Covered: -
Freight Forwarding Market
By Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Fleets, Volume, Average Distance, Price/ton/km and Revenue)
Air Freight (Volume, Average Distance, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue and Volume)
Full truck load (Revenue and Volume)
By Type of Fleets (Number of Fleets)
Reefer trucks
Non reefer trucks
Companies Covered
Royal Cargo
AAI logistics
F2 logistics
LF logistics
Rhenus logistics
Orient logistics
2GO logistics
Kerry logistics
RLH Trucking
MMG logistics
2SL services
Inland logistics
A3 logistics
Fast cargo Logistics
Chelsea Logistics
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Real Estate Companies/ Industrial Developers
Time Period Captured in the Report: -
Historical Period – 2014-2019P
Forecast Period – 2020-2024F
Key Topics Covered in the Report: -
Philippines Logistics and Warehousing Market Introduction
Logistics Infrastructure
Cross Comparison of Logistics Performance in Different Countries (Philippines, India, Vietnam, Indonesia and Australia)
Philippines Logistics and Warehousing Market Size
Philippines Logistics and Warehousing Market Segmentation
Philippines Logistics and Warehousing Market Future Outlook
Philippines Logistics and Warehousing Market Future Segmentation
Philippines Freight Transportation Market Size
Philippines Freight Transportation Market Segmentation
Philippines Freight Transportation Market Future Outlook
Philippines Freight Transportation Market Future Segmentation
Philippines Trucking market size
Philippines Trucking Ecosystem
Philippines Trucking Market Segmentation
Philippines Trucking Market Future Outlook
Philippines Trucking Market Future Segmentation
Innovations in Transportation Market
Cost Component in Philippines Road Freight Market
Regulatory Environment
Issues and Challenges
For More Information on the research report, refer to below link: -
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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Location: Philippines

Wednesday, May 6, 2020

Philippines Logistics and Warehousing Future Outlook: Ken Research

How Is the Philippines Logistics and Warehousing Market Positioned?
Overview: Philippine is an Import oriented country that comprises of 7000 Islands and is dominated by sea freight due to archipelago geography. The operations of the whole country are highly cantered in Luzon Island with major congestion at Manila Ports, working with almost 90% capacity in comparison to the ideal capacity of 75%.
Due to high growth in the manufacturing and industrial sector, players have begun turning to 3PL (Third Party Logistics) for warehousing and distribution to focus on their core business activities. The government is improving its Cold chain facilities and heavily investing in road infrastructure and new ports using Public-private partnerships to reduce congestion.
Philippines Logistics and Warehousing Market
Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during 2014-2019 primarily due to increasing infrastructure investment, e-commerce, and cold chain facilities in the Philippines. The Logistic sector performance is still not very good in comparison to other South Asian countries such as Indonesia and Thailand but has improved in the past 5 years, currently holding 60th rank in 2018 according to the World Bank.
The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. The other sectors include value-added services, e-commerce deliveries and 3PL market.
Philippines Logistics and Warehousing Market
By Service Mix: The freight forwarding segment has dominated the logistics industry of the Philippines and has grown at a five-year CAGR of ~% during the period 2014-2019P. This is primarily due to infrastructural investments, increasing foreign trade, increasing export and imports by sea. The demand for cold storages is increasing in Manila and Other islands due to rising demand for meat, seafood, and other perishable products.  Warehousing and CEP sector is even expected to boost by e-commerce companies opening their fulfilment centres across the Philippines. VAS is being popular with all companies providing VAS as part of their service portfolio to give all possible services to their clients under one roof.
Philippines Road Freight Market Size
Road freight market is expected to reach PHP ~ million in 2019 from PHP ~ Million in 2014 with a CAGR of   ~% during the period 2014-2019P. This has been due to the Improvements in the Road connectivity between the Islands of Luzon, Visayas and Mindanao, Improving trade relations with many countries such as Europe, China, and more. Very high Road freight movements can be seen near the port of manila as it’s a major trading port and other parts of Luzon which are highly populated regions in comparison to regions in other Islands.
By Mode of Service: Philippines freight forwarding market was dominated by sea freight in terms of revenue and volume due to its archipelago geography and it is an import driven economy. It is followed by road freight which is facing a lot of challenges due to Congestion and bad road infrastructure.
By Road Freight:
The road freight is only done domestically due to its geography. The movement is done by RORO between Inter-Island and Intra Island by road. The number of trucks is increasing at ~ rate between 2014-2019P. The average freight rate is one of the highest among South East Asian Countries.
By FTL/LTL: Majority of the Volume transported by road is done on LTL basis by Revenue and Volume with Average prices charged in case of LTL is ~% higher than FTL basis.
Cost Component analysis:
Out of the total operating cost, ~ % is held by Fuel, ~% is held by salary and ~% by Toll earning ~% margin by trucking companies.
Competitive Scenario In Philippines Road Freight Market
The Road Freight Market in the Philippines is highly fragmented in nature. Companies are focusing on providing value-added services along with tracking. Trucking is dominated by Domestic companies which are local transporters having huge fleets for Inter and Intra Island transportation. The major players in the market are Royal Cargo, AAI logistics, F2 logistics, LF Logistics, 2GO Logistics, Kerry Logistics, and many more.
The parameters at which the companies are competing are Pricing, Location, fleet size, and Warehousing space, Additional services such as kitting, assembling, labeling, etc and technological advancements. Many Online demand digital platforms such as Ezyhaul, Transportify, Blackarrow, and others are extensively being used by transporters to resolve the problem of empty returns.
Philippines Road Freight Future Outlook and Projections
Philippines Road Freight Market is expected to rise at a CAGR of ~% during 2019-2024F. The logistics and warehousing are expected to rise from ~ PHP Million in 2019 to ~ PHP Million in 2024. The Road freight market is expected to increase due to an Extensive infrastructural budget in improving Road Congestion especially in metropolitan cities of Manila and Cebu, Government efforts such as Green freight policies to reduce Carbon Emissions and increasing deliveries through e-commerce platforms. The government is promoting electric vehicles in passenger transportation through benefits in kind which will become new normal in the next 5-10 years. COVID will have an impact on Road transportation due to transportation of only essential commodities in the lockdown period but will revive by 2021. Technologies such as Real-time tracking, Electric cars, and Fleet Management Software will become popular in the next few years.
Philippines Logistics and Warehousing Future Outlook and Projections
Philippines Logistics and Warehousing Market is expected to rise at a CAGR of ~% during 2019-2024F. The logistics and warehousing are expected to rise from ~ PHP Million in 2019 to ~ PHP Million in 2024. Logistics is expected to increase in the future with the rising e-commerce market due to online payment options. The government is even investing in building bridges using PPP projects aimed at reducing congestion in metropolitan cities. The cold storages are expected to increase due to the high consumption of meat and seafood products in Philippines. COVID-19 will have a significant impact on the logistics sector but is expected to revive back by 2021. Trucking Aggregators, innovations such as AI, Electric cars, ASRS and more will soon revolutionize the logistics space in the future.
Key Segments Covered: -
Freight Forwarding Market
By Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Fleets, Volume, Average Distance, Price/ton/km and Revenue)
Air Freight (Volume, Average Distance, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue and Volume)
Full truck load (Revenue and Volume)
By Type of Fleets (Number of Fleets)
Reefer trucks
Non reefer trucks
Companies Covered
Royal Cargo
AAI logistics
F2 logistics
LF logistics
Rhenus logistics
Orient logistics
2GO logistics
Kerry logistics
RLH Trucking
MMG logistics
2SL services
Inland logistics
A3 logistics
Fast cargo Logistics
Chelsea Logistics
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Real Estate Companies/ Industrial Developers
Time Period Captured in the Report: -
Historical Period – 2014-2019P
Forecast Period – 2020-2024F
Key Topics Covered in the Report: -
Philippines FTL Freight Market Rates
Philippines Sea Freight Market
Philippines Air Freight Market
Philippines Rail Freight Market
Philippines Temperature controlled Trucks
Philippines trucking cost
COVID-19 Impact on Trucking Industry Philippines
Philippines F2 logistics Market Outlook
Philippines LF logistics Market Future
Philippines Kerry logistics Market Growth
Philippines Inland logistics Industry Share
Philippines A3 logistics Market Analysis
Philippines Fast cargo Logistics Market Size
For More Information on the research report, refer to below link: -
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Posted by at No comments:
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Location: Philippines

Tuesday, May 5, 2020

Rise in Government Infrastructure, Growing Cold Transportation, and Increasing Tech Penetration is Facilitating Growth in Road Freight Industry in Philippines: Ken Research

Increased Government Spending: The government has targeted to increase infrastructure spending to more than 5% of the country’s GDP to reduce congestion and improving road infrastructure in the metropolis. Various efforts include Bonifacio Global City-Ortigas Business Centre link road, Strong Republic Nautical Highway, the introduction of a paperless system at Port of Manila, Public-Private Partnerships deals funded by Big Companies such as San Miguel Corporation.
High Seasonal Demand Variation: The demand for trucking in the Philippines is the highest during “Sond” Months (Sept, Oct, Nov, and Dec) where the occupancy of trucks is increased by 20-30% with price variation of 30-40% in comparison to normal freight rates due to festivals such as Christmas and New a year and additional employee bonus along with benefits given to the employees at the end of the year.
philippines-road-freight-market
Change in Government Regulations: The government is constantly changing the regulations associated with the trucking industry such as the Restriction of trucks above the age of 15 years to avoid carbon emissions in the country. The government has also imposed Truck ban from 6:00 a.m. - 10:00 a.m. and 5:00 p.m. - 10:00 p.m. every day except Sundays and Holidays on certain routes applicable on heavy trucks to avoid congestion on roads
Inter-Island Connectivity by RORO: The Inter island movement between Visayas, Luzon, and Mindanao has improved due to cheaper and faster connectivity using the Ro-Ro Facility which allows vehicles to directly drive onto and off Ro-Ro ferries without loading/offloading of cargo.  The travel time between Mindanao and Luzon has been reduced by 12 hours using Ro-Ro due to reduced time in loading/ unloading cargo and faster availability of ferries, which has also lowered the freight cost by almost 30%.
Analysts at Ken Research in their latest publication “Philippines Road Freight Market Outlook to 2024 – Driven by Government Spending on Road Infrastructure and Technological Advancements” believe that the Road Freight Market in the Philippines is expected to grow due to Government spending to reduce congestion in metropolitan Cities, RORO facilities that have reduced time and cost to transport products and Growing E-commerce Sector in The Philippines.
Key Segments Covered: -
Freight Forwarding Market
By Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Fleets, Volume, Average Distance, Price/ton/km and Revenue)
Air Freight (Volume, Average Distance, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue and Volume)
Full truck load (Revenue and Volume)
By Type of Fleets (Number of Fleets)
Reefer trucks
Non reefer trucks
Companies Covered
Royal Cargo
AAI logistics
F2 logistics
LF logistics
Rhenus logistics
Orient logistics
2GO logistics
Kerry logistics
RLH Trucking
MMG logistics
2SL services
Inland logistics
A3 logistics
Fast cargo Logistics
Chelsea Logistics
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Real Estate Companies/ Industrial Developers
Time Period Captured in the Report: -
Historical Period – 2014-2019P
Forecast Period – 2020-2024F
Key Topics Covered in the Report: -
Philippines FTL Freight Market Rates
Philippines Sea Freight Market
Philippines Air Freight Market
Philippines Rail Freight Market
Philippines Temperature controlled Trucks
Philippines trucking cost
COVID-19 Impact on Trucking Industry Philippines
Philippines F2 logistics Market Outlook
Philippines LF logistics Market Future
Philippines Kerry logistics Market Growth
Philippines Inland logistics Industry Share
Philippines A3 logistics Market Analysis
Philippines Fast cargo Logistics Market Size
For More Information on the research report, refer to below link: -
Related Reports by Ken Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Posted by at No comments:
Labels: , ,
Location: Philippines
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