Cargo shipping is alive and well this year, as reflected by new entrants in the field. While higher fuel taxes may pose a minor impediment to the segment, it appears that Philippine services in cargo shipping are unstoppable and will only see their operations grow this year.
Emergent logistics companies are gaining ground in the field, and many are to follow as economies in Southeast Asia grow. Detailed below are the reasons the sector is experiencing such unprecedented growth.
Giving the year a fitting start is the computerization program of the Bureau of Customs, which aims to provide its staff, as well as citizens and businesses, the convenience of processing licenses and obtaining government documents.
Another new service under this initiative is TradeNet platform, connected to the gateway of the ASEAN Single Window (ASW). The effort started during the last quarter of 2017 and aims to ease processing time for cargo clearances of businesses and shipping lines.
Thriving online retailing environment
The technological gap between millennials and baby boomers is narrowing as the latter become savvier in using mobile devices and Internet-connected technologies. Contrary to popular belief, baby boomers are the most motivated online shoppers among the three age groups, followed by Gen-Xers and millennials.
Philippine services in cargo shipping are reaping the benefits of this growth, propelling some of them to add more workers and fleets to their operations.
The Maritime Industry Authority (Marina) has also been a crucial player in boosting the segment through its research and policymaking initiatives. While primarily focused on supporting domestic shipping lines, their studies on preventing maritime accidents and documentation also benefit the industry.
The reforms Marina is introducing to the field, such as stricter safety policies and those in regard to fleet modernization financing, positively impact domestic shipping lines that are mostly linked to cargo shipping sister companies.
Thanks to these three developments, the cargo shipping industry continues to expand its reach. Many more shipping lines indeed prosper this year.