THE logistics industry is likely to charge higher freight rates and prolong delivery timelines due to the Middle East crisis, though growth is expected to continue driven by e-commerce and import demand, according to CargoBoss Philippines.
In an e-mail replying to questions, CargoBoss said it remains bullish on Philippine logistics even in the face of shocks.
“The outlook for Philippine logistics remains positive, supported by sustained growth in e-commerce, increasing participation among micro, small and medium enterprises (MSMEs), and continued reliance on imports — particularly from key trading partners such as China.”
However, the Middle East crisis could make freight rates volatile and stretch out delivery timelines, especially if the cargo traverses areas near the fighting, it said.
“For trade lanes such as China to the Philippines, the impact is expected to be manageable, as these routes are relatively more stable compared to Europe-bound or transcontinental shipping corridors,” CargoBoss said.
As of March 31, the Maritime Industry Authority allowed domestic shipping companies, ship operators, shippers, charterers, and cargo owners to raise their charges by up to 30%.
Despite ongoing challenges, CargoBoss noted that the Philippine logistics industry is expected to stabilize in the long term, with shipping lines seen adjusting capacity, routes, and pricing.
“For the Philippines, demand for imported goods — especially among MSMEs — remains strong, which will likely sustain logistics activity despite external uncertainties,” it said.
MSMEs and online sellers account for up to 90% of CargoBoss’s freight activity, it said.
The regional logistics industry will be shaped by real-time tracking and automated updates to shipping; supply chain diversification; and businesses’ growing demand for pricing clarity.
Over the next 12 months, the company said it is optimistic about growth, as clients demand simplified logistics solutions, as more of them engage in international sourcing.
CargoBoss is also looking to expand its warehouse capacity and route optimization to cater to clients’ needs, it said. — Beatriz Marie D. Cruz
