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

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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.

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: -

Philippines Road Freight Industry Growth

Related Reports by Ken Research: -

Australia Logistics And Warehousing Market By Sector (Freight Forwarding, Warehousing, VAS), By Domestic & International Services - Outlook To 2021

Philippines Logistics And Warehousing Market Outlook To 2024 - By Freight Forwarding (Air, Sea, Land), Domestic And International Freight Flow Corridor; By Warehousing (Industrial/Retail Freight, Container Freight, Cold Storage, Agriculture And Others), Express And E-Commerce Logistics, Balikbayan Box, Third Party Logistics

Indonesia Logistics and Warehousing Market Outlook to 2023 - Driven by Infrastructure Spending for Airport and Seaports Albeit by Poor Existing Road Network

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249