Does The Philippines Need a Sustainable Freight Program For Trucks?

Truck shipments account for the biggest share of freight transportation by land in the Philippines, hence making some sustainable changes would have a noticeable impact, according to a study. It’s also important to choose the best freight forwarder in the Philippines that recognizes the importance of sustainable logistics. As logistics costs in the country are quite expensive, it makes sense for the freight truck industry to adopt a “green freight” mindset.

Dominant Sector

Clean Air Asia’s study showed that trucks account for 58% of freight shipments in the country. Hence, they have the largest carbon footprint and higher operational costs worth up to 53% of the product’s value. In other regions such as Mindanao, the total cost is 73% higher than the rate in Luzon. New fleet management systems could be a solution to improve the efficiency of trucks, and this includes a routine maintenance schedule, according to the study. By implementing this periodic system, trucks can perform better and reduce their emissions levels. However, the study noted that something must be done about poor road networks and traffic congestion. The government’s Build, Build, Build project could be the long-awaited solution.

Optimistic Outlook

Despite high costs and infrastructure challenges, logistics companies in the Philippines remain positive on this year’s growth prospects. Nestor Felicio, Supply Chain Management Association of the Philippines, attributed the bright outlook for 2018 to a strong economy and consumer spending. These factors indicate that freight shippers need to distribute more products, which means more business for them. The emergence of e-commerce also contributes to an expected growth in activity, according to Felicio. While there is a generally upbeat business sentiment, companies need to prepare for certain challenges such as the truck modernization program and higher excise taxes on fuel.

Conclusion

A sustainable freight program will not only improve a company’s corporate social responsibility but also improve its bottom-line. What is your industry outlook for this year?