Logistics Industry Philippines, Logistics Market Philippines: Ken

Future of Philippines Logistics Market Growth: Ken Research

How Is the Philippines Logistics Market Positioned?

Overview: Philippine is an Import oriented country that comprises 7000 Islands and is dominated by sea freight due to archipelago geography. The operations of the whole country are highly cantered in Luzon Island with major congestion at Manila Ports, working with almost 90% capacity in comparison to the ideal capacity of 75%.

Due to high growth in the manufacturing and industrial sector, players have begun turning to 3PL (Third Party Logistics) for warehousing and distribution to focus on their core business activities. The government is improving its Cold chain facilities and heavily investing in road infrastructure and new ports using Public-private partnerships to reduce congestion.

Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during 2014-2019 primarily due to increasing infrastructure investment, e-commerce, and cold chain facilities in the Philippines. The Logistics sector performance is still not very good in comparison to other South Asian countries such as Indonesia and Thailand but has improved in the past 5 years, currently holding 60th rank in 2018 according to the World Bank.

The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. The other sectors include value-added services, e-commerce deliveries, and the 3PL market.


Philippines Logistics and Warehousing Market

By Service Mix: Freight forwarding segment has dominated the logistics industry of the Philippines and has grown at a five-year CAGR of ~% during the period 2014-2019P. The market was witnessed to grow from PHP ~ Million in 2014 to PHP ~ Million in 2019P. This is primarily due to infrastructural investments, increasing foreign trade, increasing export, and imports by the sea which has positively impacted the freight forwarding industry of the country. The demand for cold storages is increasing in Manila and Other islands due to the rising demand for meat, seafood, and other perishable products.  The warehousing sector is even expected to boost by e-commerce companies opening their fulfilment centres across the Philippines. Courier Express and Parcel market acquired a revenue share of ~% in 2019E which was an increment from 2014. VAS is being popular with all companies providing VAS as part of their service portfolio to give all possible services to their clients under one roof.

Philippines Freight Forwarding Market Segmentation

By Mode of Service: Philippines freight forwarding market was dominated by sea freight in terms of revenue and volume due to its archipelago geography and it is an import driven economy. It is followed by road freight which is facing a lot of challenges due to Congestion and bad road infrastructure.

By Road Freight:

The road freight is only done domestically due to its geography. The movement is done by RORO between Inter Island and Intra Island by road. The number of trucks is increasing at ~ rate between 2014-2019P. The average freight rate is one of the highest among Southeast Asian Countries.

By FTL/LTL: Majority of the Volume transported by the road is done on LTL basis by Revenue and Volume with Average prices charged in case of LTL is ~% higher than FTL basis.

Cost Component analysis:

Out of the total operating cost, ~ % is held by Fuel, ~% is held by salary and ~% by Toll earning ~% margin by trucking companies.

Philippines Warehousing Market Segmentation

By Business Model: The industrial and retail warehouses dominated the overall Philippines warehousing market with area share of ~%, with average price ~ and occupancy rate of ~ in 2019. This is primarily due to increasing Industrial parks and real estate developers’ investments in logistics space. This is followed by ICD’s /CFS near the ports.

By End Users: The major end-users of warehousing services in the Philippines include Food and Beverages which provides maximum revenue. The pharmaceutical companies generally prefer their own warehouses due to the extra precaution’s measures needed.

Industrial Warehouses by Grade A, Grade B, and Grade C Warehouses: Grade A warehouses accounted for ~% of the total industrial warehouses and Grade B accounts for the ~% with remaining ~% Grade C warehouses. Philippines is seeing an increasing demand for Grade A warehouses in the country.

Philippines Cold Chain Market

The overall revenue generated by the Cold Chain Market has increased from PHP ~ Billion in 2014 to PHP ~ Billion in 2019 at a positive CAGR of ~%during the period.

By Service: The majority of revenue is done by Cold storages and contributes ~% revenue with the number of reefer trucks increasing every year.

Cold Storage by Temperature: Freezers- chillers convertible pallets dominated the revenue in the cold storage market, both in terms of number of pallets as well as Revenue

Cold Storage by Ownership: Almost ~% of the warehouses are captive owned by food and beverage companies and ~% warehouses are held by Non-Captive warehouses.

Cold storages by region:

Majority of cold storages are in Metro Manila due to the very high population and presence of more companies.

Competitive Scenario in Philippines Logistics and Warehousing Market

The logistics and warehousing market in Philippines are highly fragmented in nature. Companies are focusing on providing value-added services along with trucking and warehousing. Trucking, warehousing and cold chain market are dominated by Domestic companies. The major players in the Philippines logistics and warehousing market are Royal Cargo, W Express (DHL), 2GO Logistics, Yusen Logistics, AAI logistics, FSTA Trucking, LF Logistics, Fast cargo logistics, and many more.

 The parameters at which the companies are competing are Pricing, Location, fleet size, and Warehousing space, Additional services such as kitting, assembling, labelling etc and technological advancements.

Philippines Logistics and Warehousing Future Outlook and Projections

Philippines Logistics and Warehousing Market is expected to rise at a CAGR of ~% during 2019-2024F. The logistics and warehousing are expected to rise from ~ PHP Million in 2019 to ~ PHP Million in 2024. The Logistics is expected to increase in the future with the rising e-commerce market due to online payment options. The government is even investing in building bridges using PPP projects aimed at reducing congestion in metropolitan cities. The cold storages are expected to increase due to the high consumption of meat and seafood products in the Philippines. COVID-19 will have a significant impact on the logistics sector but is expected to revive back by 2021. Trucking Aggregators, innovations such as AI, Electric cars, ASRS and more will soon revolutionize the logistics space in the future.

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)

Warehousing Market

By Business Model (Revenue, Price/sqm, warehousing space, Occupancy rate)



Cold Storage


By Industrial warehouses (Revenues)

Grade A

Grade B

Grade C and others

By End Users (Revenues)

Food & Beverages

Textiles and Footwear


Pharmaceuticals and Medical consumables


Others include agricultural products, frozen meat and more

Cold Chain Market

By Service

Cold Transportation (Revenues)

Cold Storage (Revenues, Number of Cold storages, Number of pallets, Price/ pallet/day, Occupancy rate)

By Mode of cold transportation

Road (Revenue, reefer trucks)

Air (Revenue)

Sea (Revenue)

Revenue by Temperature Range (Revenue, Price/pallet/day)




By Regions (Number of Cold storages)


Cagayan Valley

Central Luzon

Calabarzon and Mimaropa


Western Visayas

Central Visayas

Eastern Visayas


Northern Mindanao





By type of ownership (Number of cold stores)


Non captive

Companies Covered

Royal Cargo

W Express (DHL)

2GO logistics

Yusen logistics

AAI logistics

FSTA Trucking

Inland Logistics

Chelsea logistics

RLH Trucking

Cartrex trucking

2SL Services

Air speed

Orient Freight International

Ernest corporation

Cadano Cargo



Mercury Freight

All Transport Network

Legalas International



ISA Trucking

Asia world

Fast cargo logistics

Panalpina DSV

Rhenus logistics

Nippon Express

Kerry freight


MMG Freight

Antrak logistics

PRC Food Logistics

Pacific Road link logistics

EVFTC transport

Igloo supply chain

Dinotrans Transport

Refrigerated Truck Door To Door Delivery

Jentec Cold Storage

Glacier Megafridge

Mets Logistics

ORCA Cold Chain Solutions

Big Blue Logistics

Royal Cargo

Vifel cold facility

Royale Cold Storage

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 – 2014-2019

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, Philippines, 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 Market Segmentation

Philippines Trucking Market Future Outlook

Philippines Trucking Market Future Segmentation

Innovations in Transportation Market

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

Philippines Logistics Market Growth

Related Reports by Ken Research: –

India Logistics Market Outlook to FY24–Driven By Government Infrastructure Push, New Age Logistics Startups, And Technology Innovation

Philippines Cold Chain Market Outlook To 2025: Driven By Rising Processed Food Consumption Owing To Growing Millennial Population Albeit Infrastructure Challenges

Turkey Logistics And Warehousing Market Outlook To 2025 – By Domestic And International Freight Forwarding Throughput, Revenue & Flow Corridor (Road Freight And Pipelines, Sea, Air And Rail Freight), By Warehousing (Industrial / Retail, Container Freight / Inland Container Depot & Cold Storage), By 3PL, Courier Express & Parcel, Domestic And Cross Border E-Commerce Logistics

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications

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