The Philippines Third Party Logistics have been Heavily Dependent upon International 3PL Services

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Philippines logistics market has evolved in recent years with the rising globalization which is one of the key driving factors responsible for the growth of logistics market in the Philippines. Globalization has increased trade activities in the country and logistics has played a key role in connecting different export and import markets of various countries across the world.

The logistics service involves the movement and transport of the documents, parcels, goods, materials, products which include management of freight, storage, packaging and inventory. The goods are transported by the basic modes of transportation which includes land, water, air and rail. The technological advancements and trade together have contributed to the growth of logistics industry in the Philippines. The logistics industry plays a key role in the exports and import of commodities in the Philippines. The logistics market in the Philippines has witnessed a growing need of maritime, aviation and land transport systems to ensure efficient flow of resources and commodities within the country as well as to other countries globally.

Philippines logistics market is segmented by industry type and includes freight transport by road, sea and air, storage and warehousing, and value added services. The logistics market in the country was largely dominated by road freight forwarding industry during the review period. Freight transport by road has been mainly utilized for domestic transport of goods and commodities by various industry sectors in the Philippines.

The Philippines has been considered as one of the most strategic locations in the Indo-Pacific Ocean. The rapid evolution of its logistics industry has been credited to high trade traffic in both international and domestic market. The country has been considered as a trade hub due to the export of electronics, raw fibers and import of apparels and other products. The presence of such system of high volume exchange of goods has propelled the growth of the logistics industry in the Philippines.

The Filipino e-commerce industry has witnessed a moderate rise in the past five years with an increase in internet penetration into the country. The percentage of internet users in the country has risen from 9% in 2010 to 44% in 2015. Moreover, the escalation in the number of smart phones in the country has augmented the growth of e-commerce in the country. As a result, the demand for online services in the Philippines logistics industry has witnessed a steady rise in the review period. The demand of logistics services in which orders have been placed online through booking through the internet, has gained little popularity amongst the masses.