Philippines Freight Forwarding Market Overview, 2029

The freight forwarding industry in Philippines acts as the unsung hero in international trade, precisely arranging the consignment through the knotty network of logistics and regulations to transportation networks. As these businesses increasingly spread operations beyond their domestic borders and engage in international trade, the demand for efficient and dependable freight forwarding services has considerably improved in Philippines. With businesses expanding into the Philippines marketplace comes a variety of logistical difficulties and intricacies. These have their origin from differences in regulations, customs procedures, modes of transport, and geographic distances across international trade borders. Such complexities therefore require the ingenuity and services of freight forwarders, who best understand the dynamics of international logistics in order to surmount these barriers. In Philippines, the freight forwarding industry has undergone several severe impacts from the COVID-19 pandemic, affecting immediate operations and having the potential to influence longer-term trends. The first and most immediate, very noteworthy result was the disruption of Philippines supply chains. These controls, such as lockdowns, factory closures, and restrictions on movement, disrupted the flow of goods worldwide and posed substantial problems for those involved in freight forwarding. This meant quickly adapting and finding new routes and methods of transportation that would keep cargo moving while often waiting unexpectedly and dealing with congestion. The pandemic caused immense shifts in the demand for many different commodities. There was an increase in demand for necessities like medical supplies and personal protective gear.

According to the research report "Philippines Freight Forwarding Market Overview, 2029," published by Bonafide Research, the Philippines Freight Forwarding market is expected to reach a market size of more than USD 600 Million by 2029. The rapid expansion of e-commerce has also profoundly impacted the Philippines market's growth. Online retail and digital marketplaces have experienced significant growth as consumers increasingly prefer to shop online, transforming how products are sourced and sold. This shift towards digital commerce often involves international trade, which presents intricate supply chain logistics challenges that are met by freight forwarders. Online retailers and e-commerce platforms rely heavily on freight forwarders to efficiently move goods from manufacturers, often located in different countries, to consumers spread across the Philippines. The shipment of the goods occurs via air, land or sea. The company responsible for organizing the shipment is known as freight forwarder. Freight forwarders manage the risks and benefits of shipping both nationally and internationally by performing the required tasks such as freight rate negotiations, container tracking, customs documentation and freight consolidation. Moreover, freight forwarding comprises numerous stages such as export haulage, export customs clearance, origin handling, import customs clearance, destination handling and import haulage. Freight forwarding is the process of organizing, coordinating, and shipping of goods from one place to another across international borders through a single or multiple carriers. The shipment of the goods occurs via air, land or sea. The company responsible for organizing the shipment is known as freight forwarder. Freight forwarders manage the risks and benefits of shipping both nationally and internationally by performing the required tasks such as freight rate negotiations, container tracking, customs documentation and freight consolidation.

The industrial and manufacturing segment is the biggest in the freight forwarding market in Philippines, given the large volume of freights in the process between production sites, distribution centers, and end-users. Coupled with heavy machinery and raw materials, finished goods are also part of the process, so it involves robust logistical support. This is because the supply chains of these industries are geographically spread and demand effective and cost-friendly transportation services. The Healthcare segment is gaining momentum, driven by the growing need for drugs, medical appliances, and other healthcare products. This is largely based on shifting demographics, advances in medical technology, and a rise in chronic diseases. Specialized logistic services, such as temperature-controlled shipment of products and strict adherence to regulatory requirements, further fuel innovation and investment in the freight forwarding market. Another key sector is Retail and E-commerce, driven by exponential growth in online shopping and the need for efficient last-mile delivery solutions. It will also demand flexible and responsive logistic services to meet consumer expectations of fast and reliable delivery. For the Automotive segment, it would be vehicle, parts, and component transport and just-in-time delivery will be vital to keep up production schedules. The consumer goods segment ranges from electronics to FMCG and requires flexible, scaled-up logistics solutions to manage fluctuating demand.

It is expected that the Transportation and Warehousing segment is likely to dominate the freight forwarding market in Philippines since it forms the core of the physical movement of goods from one place to another and the storage solution. This segment acts as the backbone of any supply chain, whose dominance can be attributed to rising global trade volumes and a subsequent demand for efficient, multi-modal transportation and warehousing services. The value-added services segment is on a fast growth track, as freight forwarders increasingly expand to meet customer needs against the highly competitive market. These represent customs brokerage, cargo insurance, supply chain visibility, inventory management, and others. It is founded on the steeply rising complexity of supply chains, the requirement for the smoothness of processes, and the digital technologies allowing improved traceability, transparency, and effectiveness in general. The Packaging segment caters to the preparation and protection of goods during transportation. This includes special packaging for fragile, hazardous, and perishable goods. This industry is important to the integrity of cargo in transit and is changing with innovations in sustainable and smart packaging solutions. The Documentation segment deals with the preparation and management of shipping documents such as bills of lading, commercial invoices, and certificates of origin. This sector, hitherto dominated by paper, is headed toward digital ways through the adoption of digital platforms that automate and simplify documentation processes.

In Philippines, the Ocean Freight forwarding segment that is leading, which is due in part to cost effectiveness and its appropriateness in the handling of huge volumes of cargo across long distances? In global trade, this is the leading way in which cargo is being moved, and invariably the majority of it. The economies of scale attributed to containerization and the extensive network of sea ports connecting the world markets could be the reasons behind these facts. The Air Freight Forwarding segment increasingly grows with the accelerated demand for the carriage of time-sensitive, high-value goods. The segment prevails for its speed, reliability, and security in the carriage of perishable items, pharmaceuticals, and high-tech products. The growth in e-retailing is promoting the requirement of inventory replenishment at rapid speed, and the need for fresh produce and requirements for temperature-controlled cargo are on the rise. The Road Freight forwarding segment forms a critical part of domestic and regional transport with flexibility, door-to-door delivery, and achieving short transit time. It is also important for connectivity between production sites, distribution centers, and retail outlets, enabling an increase in just-in-time manufacturing and quick commerce. The Rail Freight forwarding segment provides a green and efficient alternative for overland transportation, particularly in the case of bulk cargo and long-haul routes. It has been picking up because of lower emissions, reduced congestion, and cost advantages over road transport.



The reason the Business-to-Business segment leads the freight forwarding market in Philippines is the high volume of goods that are exchanged between companies, be it raw materials, intermediate products, or finished products. Within the core of worldwide supply chains can be included the flow of goods between manufacturers and suppliers at one end, and those of distributors and retailers at the other, which freight forwarders manage. Its dominance is attributed to the rising interconnection of businesses and an ever-growing requirement for effective, trustworthy, and economical solutions for logistics. The Business-to-Consumer (B2C) segment is growing at a fast pace, and e-commerce is growing at an exponential rate as consumers demand speedier delivery options more and more. This implies direct delivery of products to individual consumers, which is powered by factors such as increasing preference for online shopping, emergence of brands going directly to customers, and efficient solutions in last-mile delivery. This adds a number of unique challenges and opportunities within the B2C segment for freight forwarders in areas such as real-time tracking, flexible delivery options, and methods to accommodate small, frequent shipments.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Freight Forwarding market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End-User
• Industrial & Manufacturing
• Retail and E-commerce
• Automotive
• Consumer Goods
• Healthcare
• Others

By Service Type
• Transportation and Warehousing
• Packaging
• Documentation
• Value-added Services

By Transport Mode
• Ocean Freight forwarding
• Air Freight forwarding
• Road Freight forwarding
• Rail Freight forwarding

By Customer Type
• B2B
• B2C

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Freight Forwarding industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.