Co-loading: To save fuel, retailers urged to share delivery systems
MANILA, Philippines — One of the Philippines’ largest logistics providers is urging retailers to adopt shared delivery systems to cut transport costs, as fuel price spikes driven by the Iran war threaten to raise consumer prices.
In a statement on Wednesday, FAST Logistics Group said the widespread use of dedicated trucks for each delivery is inefficient and increasingly unsustainable. This setup, it added, contributes to congestion at retail receiving bays.
READ: Crude prices surge, Asian stocks sink as Iran warns of regional energy strikes
Citing internal data, FAST said 56 percent of trucks delivering fast-moving consumer goods (FMCG) operate at only 32 percent to 40 percent capacity, leaving much of the space unused.
Additionally, many retailers rely on smaller vehicles, which can cost up to 61 percent more than using larger six-wheeler trucks.
During a consultation with the Department of Trade and Industry on Tuesday, FAST said rising fuel costs have further exposed these inefficiencies.
Practical measure
With diesel prices breaching P100 per liter and no immediate relief expected, the company said co-loading offers a practical solution by allowing multiple retailers to share space in a single truck and pay only for what they use.
“Every direct-to-store delivery should create value, not waste,” said Manuel Onrejas Jr., CEO for logistics at FAST. “We eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods to retail stores more efficiently, lower logistics costs, and keep shelves stocked despite rising fuel prices.”
FAST said co-loading reduces empty miles and fuel consumption. It also improves turnaround times at receiving bays and allows the use of larger trucks for more efficient deliveries.
“Beyond cost savings, FAST said wider adoption of co-loading could also help reduce traffic congestion and carbon emissions while improving the availability and affordability of goods, particularly in Visayas and Mindanao, where transport costs are higher,” it said.
READ: Middle East war: global economic fallout
Not just land movers
Beyond trucking, cargo shippers are also bracing for higher costs.
Major container shipping lines have begun imposing emergency fuel surcharges as the Middle East conflict drives up bunker fuel prices, adding pressure on exporters across Asia, including the Philippines.
Despite the strain, the DTI said prices of basic goods would remain stable for at least 30 days.
The agency said it secured commitments from about 21 manufacturers, with some pledging to hold prices for up to 60 days. /dda
