- 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)
Non reefer trucks
Fast cargo Logistics
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics 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
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
Issues and Challenges
For More Information on the research report, refer to below link: –
Related Reports by Ken Research: –
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
Contact Us: –
Ankur Gupta, Head Marketing & Communications