Logistics industry sees robust growth in 2024
MANILA, Philippines —Logistics businesses are seen to thrive as the growing e-commerce industry boosts demand for last-mile delivery and warehousing services.
The Global Contract Logistics 2024 Report by market research firm Ti Insight noted that the logistics market would be mainly driven by the Asia Pacific region, which is estimated to grow by 7.1 percent this year.
Globally, the market is projected to improve by 4.2 percent this year, faster than the 3.5 percent growth it registered in 2023.
“Growth is being driven by emerging economies. In 2023, the Asia Pacific region saw growth of 7.5 percent year-on-year, versus North America and Europe which grew by 1.6 percent and 0.2 percent year-on-year, respectively,” the report noted.
According to the United Nations Economic and Social Commission for Asia and the Pacific, merchandise trade in the region will likely rise this year, forecasting growth of 3.2 percent for exports and 3.4 percent for imports.
Localized warehouses
The increasing demand for logistics is in line with the growing e-commerce industry, which heavily relies on cross-border shipments of goods. A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.
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Article continues after this advertisementThe growing online shopping sector also created the need for more localized warehouses where merchants can place inventory near their customers.
Such facilities can help bring down costs because they eliminate the need for additional inventory transfers, which also means a shorter time for parcel deliveries.
Locally, President Marcos recently ordered the Bureau of Customs and the Department of Agriculture to implement round-the-clock processing of inbound shipments at seaports to hasten supply chain movement. Doing so is also seen to accommodate more ships carrying containers.
READ: Marcos orders DA, BOC to implement 24/7 shipment processing
The President said the same amount of workers should be working at all times to ensure continuous screening and checking of imported goods, raising the need to implement three eight-hour shifts to realize the mandate.
Private Sector Advisory Council lead convenor Sabin Aboitiz, who also heads the diversified conglomerate Aboitiz Group, said this move by the government would make the country’s supply chain management more efficient.
Data from the Philippine Ports Authority showed that cargo throughput grew by about 5 percent to 271.97 million metric tons (MT) last year from 259.14 million MT in 2022, surpassing the prepandemic volume of 265.88 million MT.
