Philippines Road Freight Market Outlook to 2024

The report titled “Philippines Road Freight Market Outlook to 2024 – Driven by Government Spending on Road Infrastructure and Technological Advancements” provides a comprehensive analysis of the status of the logistics sector in the Philippines. The report covers various aspects including the current logistics scenario in the Philippines, its components viz, freight transportation, warehousing, CEP, and VAS. The report especially focuses on Road freight market highlighting its issues and challenges, major growth drivers, investment in infrastructure, tech disruptions and innovations, and competitive benchmarking. The report concludes with market projections for the future of the Road freight market including forecasted industry size by revenue and Volume.

Philippines Logistics Market Overview and Size:

Philippines Logistics Sector has witnessed a robust CAGR with highest share to freight forwarding Market followed by Warehousing, Courier parcel and Express market and VAS Market. Sea and Road are dominant modes of transportation with road transportation only possible domestically due to its Archipelago location. Many real estate developers such as Metro pacific, Ayalaland, Filinvest, and SM Corporation are entering in the warehousing market through Mergers & Acquisitions. With the help of infrastructural developments, the LPI index of the Philippines reached 60 in 2018. Competence and quality of logistics services also saw an increase from the 77th position (2016) to the 69th position (2018).

Philippines Road Freight Market Overview and Size:

Philippines Road Freight Market has witnessed an average CAGR during 2014-19 due to favorable laws from CTAP, continued investment on building bridges, road congestion in metropolitan cities, and development of ports both by the government and with Public Private Partnerships. The influx of foreign players in the market in recent years, increasing consolidation, and investing in innovative technologies has stimulated growth in the market.

Philippines road freight market has been dominated by Medium Fleet Owners with around 45-50% of Fleets. Freight rates usually remain high during the festive season in September, October, November, and December with WAFC being PHP 7.5 /tonnes/km, 2019. The business flow and corridors are shifting in road freight market of Philippines. Shift towards the Ro-Ro facilities from containerized transportation of goods; helps in reducing freight time with cost reduction by 30%.

Philippines Road Freight Market Segmentation

Road Freight Market Segmentation by LTL and FTL

The Road freight market is dominated by LTL by revenues and by Volume. The average freight cost charged for LTL is higher than FTL due to additional risk in carrying multiple loads, higher insurance costs, and more. Transportation rates are high which enables small companies to charge less and win projects even via substandard services. Generally, the LTL freight prices are 15-20% higher than FTL rates due to less volume and more risk involved. Emerging technologies such as GPS tracking on LTL freight is transforming the segment to ensure more reliability and efficiency.

Road Freight Market Segmentation by type of trucks

The Country is dominated by Non-reefer trucks in comparison to reefer trucks. The ratio of reefer and non-reefer trucks is around 2:5. The reefer trucks are expected to increase in future due to more companies providing these facilities.

Competitive Landscape of Major Players Operating in the Philippines Road Market

The Trucking industry in Philippines is extremely fragmented in nature. The trucking industry is dominated by local domestic players who has large number of fleets and warehousing space providing competitive prices. The Road freight players are providing Value added services such as Kitting, Assembling, packing and other which are very important in road freight market. Online platforms such as Lalamove, Ezyhaul, Transpotify and many more are disrupting the logistics space. The major players in the Philippines Road freight market include Royal Cargo, AAI logistics, F2 logistics, LF logistics, 2GO Logistics, Kerry Logistics and many more.

Philippines Road Freight Market Future Outlook & Projections:

The Trucking Industry in Philippines will be impacted by COVID in the country and is expected to revive back in 2021 with faster growth rate. The Road freight market will experience increase in government projects for road infrastructure, increasing industrial output, and booming of e-commerce. The growing demand of perishable products such as meat and seafood industries & agricultural output will increase the cold transportation facilities in Philippines. The companies will shift focus from price wars to better quality of services with technical innovations such as E vehicles, Fleet Management Software and more disrupting the competition space.

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)

Reefer trucks

Non reefer trucks

Companies Covered

Royal Cargo

AAI logistics

F2 logistics

LF logistics

Rhenus logistics

Orient logistics

2GO logistics

Kerry logistics

RLH Trucking

MMG logistics

2SL services

Inland logistics

A3 logistics

Fast cargo Logistics

Chelsea Logistics

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 – 2014-2019P

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, 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

Regulatory Environment

Issues and Challenges

For More Information on the research report, refer to below link: -

Philippines Road Freight Industry Growth

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