DUTIES, SHIPPING COSTS HAVE HIGHEST SHARE IN LOGISTICS EXPENSES IN PH —STUDY

Import duties and maritime transportation costs account for the lion’s share in the logistics expenses of imported and domestic goods in the Philippines, which drive an increase in the prices of products in the country, according to a study by Bluefocus Infrastructure Advisors —a Spain-based logistics service provider.

Citing its study Analysis of Logistics Costs for Imported and Domestic Containers in the Philippines, Bluefocus’ Pablo Corralo Llorente said that “in both international and domestic logistics, port and terminal charges comprise the smallest portion of the total logistics cost…”

“While the highest cost is represented by customs clearance and maritime transportation expenses,” he said.

Llorente said that customs clearance processes 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%.

“Maritime transportation is costlier in the Philippines than in neighboring countries in Southeast Asia, with destination charges playing a larger role,” Llorente said. 

He added that inland logistics represent 10% to 25% of the total logistic costs due to trucking and warehousing charges. 

While port and terminal charges at destination contribute only 5% to 10%.

Bluefocus’ Llorente said the average logistics cost for an imported container in the Philippines is at $5,300 or around P311,372.

The study also found that food-related products —processed goods and agricultural produce —make up 40% outbound containers from Manila. 

Other significant commodities include clothing and textiles, construction materials, and healthcare supplies.—AOL, GMA Integrated News

This article Duties, shipping costs have highest share in logistics expenses in PH —study was originally published in GMA News Online.

2024-07-03T06:12:03Z dg43tfdfdgfd