How Is the Philippines Logistics Market Positioned?
Overview: Philippine is an Import oriented country that comprises 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.
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 Logistics 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 the 3PL market.
Philippines Logistics and Warehousing Market
By Service Mix: 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. The market was witnessed to grow from PHP ~ Million in 2014 to PHP ~ Million in 2019P. This is primarily due to infrastructural investments, increasing foreign trade, increasing export, and imports by the sea which has positively impacted the freight forwarding industry of the country. The demand for cold storages is increasing in Manila and Other islands due to the rising demand for meat, seafood, and other perishable products. The warehousing sector is even expected to boost by e-commerce companies opening their fulfilment centres across the Philippines. Courier Express and Parcel market acquired a revenue share of ~% in 2019E which was an increment from 2014. 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 Freight Forwarding Market Segmentation
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 Southeast Asian Countries.
By FTL/LTL: Majority of the Volume transported by the 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.
Philippines Warehousing Market Segmentation
By Business Model: The industrial and retail warehouses dominated the overall Philippines warehousing market with area share of ~%, with average price ~ and occupancy rate of ~ in 2019. This is primarily due to increasing Industrial parks and real estate developers’ investments in logistics space. This is followed by ICD’s /CFS near the ports.
By End Users: The major end-users of warehousing services in the Philippines include Food and Beverages which provides maximum revenue. The pharmaceutical companies generally prefer their own warehouses due to the extra precaution’s measures needed.
Industrial Warehouses by Grade A, Grade B, and Grade C Warehouses: Grade A warehouses accounted for ~% of the total industrial warehouses and Grade B accounts for the ~% with remaining ~% Grade C warehouses. Philippines is seeing an increasing demand for Grade A warehouses in the country.
Philippines Cold Chain Market
The overall revenue generated by the Cold Chain Market has increased from PHP ~ Billion in 2014 to PHP ~ Billion in 2019 at a positive CAGR of ~%during the period.
By Service: The majority of revenue is done by Cold storages and contributes ~% revenue with the number of reefer trucks increasing every year.
Cold Storage by Temperature: Freezers- chillers convertible pallets dominated the revenue in the cold storage market, both in terms of number of pallets as well as Revenue
Cold Storage by Ownership: Almost ~% of the warehouses are captive owned by food and beverage companies and ~% warehouses are held by Non-Captive warehouses.
Cold storages by region:
Majority of cold storages are in Metro Manila due to the very high population and presence of more companies.
Competitive Scenario in Philippines Logistics and Warehousing Market
The
logistics and warehousing market in Philippines are highly fragmented in nature. Companies are focusing on providing value-added services along with trucking and warehousing. Trucking, warehousing and cold chain market are dominated by Domestic companies. The major players in the Philippines logistics and warehousing market are Royal Cargo, W Express (DHL), 2GO Logistics, Yusen Logistics, AAI logistics, FSTA Trucking, LF Logistics, Fast cargo 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, labelling etc and technological advancements.
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. The 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 the 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)
Warehousing Market
By Business Model (Revenue, Price/sqm, warehousing space, Occupancy rate)
Industrial/Retail
CFS/ICD
Cold Storage
Agriculture
By Industrial warehouses (Revenues)
Grade A
Grade B
Grade C and others
By End Users (Revenues)
Food & Beverages
Textiles and Footwear
Chemicals
Pharmaceuticals and Medical consumables
Electronics
Others include agricultural products, frozen meat and more
Cold Chain Market
By Service
Cold Transportation (Revenues)
Cold Storage (Revenues, Number of Cold storages, Number of pallets, Price/ pallet/day, Occupancy rate)
By Mode of cold transportation
Road (Revenue, reefer trucks)
Air (Revenue)
Sea (Revenue)
Revenue by Temperature Range (Revenue, Price/pallet/day)
Freezers
Chillers
Ambient
By Regions (Number of Cold storages)
Ilocos
Cagayan Valley
Central Luzon
Calabarzon and Mimaropa
Bicol
Western Visayas
Central Visayas
Eastern Visayas
Zamboanga
Northern Mindanao
Davao
Soccsksargen
Caraga
NCR
By type of ownership (Number of cold stores)
Captive
Non captive
Companies Covered
Royal Cargo
W Express (DHL)
2GO logistics
Yusen logistics
AAI logistics
FSTA Trucking
Inland Logistics
Chelsea logistics
RLH Trucking
Cartrex trucking
2SL Services
Air speed
Orient Freight International
Ernest corporation
Cadano Cargo
Pambato
Truckmoto
Mercury Freight
All Transport Network
Legalas International
Mendonza
Agility
ISA Trucking
Asia world
Fast cargo logistics
Panalpina DSV
Rhenus logistics
Nippon Express
Kerry freight
Kintetsu
MMG Freight
Antrak logistics
PRC Food Logistics
Pacific Road link logistics
EVFTC transport
Igloo supply chain
Dinotrans Transport
Refrigerated Truck Door To Door Delivery
Jentec Cold Storage
Glacier Megafridge
Mets Logistics
ORCA Cold Chain Solutions
Big Blue Logistics
Royal Cargo
Vifel cold facility
Royale Cold Storage
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 – 2014-2019
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, Philippines, 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 Market Segmentation
Philippines Trucking Market Future Outlook
Philippines Trucking Market Future Segmentation
Innovations in Transportation Market
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Related Reports by Ken Research: -
Contact Us: -
Ken Research
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Ankur@kenresearch.com
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