A recent study by an international advisory services company has highlighted customs duties and maritime transportation costs as significant factors contributing to the high logistics expenses in the Philippines. The report indicates that these costs are major contributors to the overall expenses for both imported and domestic containers, affecting the prices of products in the country.
According to Pablo Corralo Llorente, an advisor at Bluefocus Infrastructure, maritime transportation is notably costlier in the Philippines compared to neighboring Southeast Asian countries, with destination charges playing a substantial role. The study found that customs clearance processes can contribute to 35% to 60% of the total logistics cost, followed by maritime transportation, which includes shipping line freight rates and surcharges, at 20% to 40%.
Inland logistics, which encompasses trucking and warehousing charges, represents 10% to 25% of the total costs. Meanwhile, port and terminal charges at the destination contribute only 5% to 10%. The average logistics cost for an imported container in the Philippines is estimated at $5,300, or approximately P311,372.
The study also noted that food-related products, including processed goods and agricultural produce, make up 40% of outbound containers from Manila. Other significant commodities include clothing and textiles, construction materials, and healthcare supplies.
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