5 Tips for Choosing the Right Trucking Service Provider in the Philippines

The trucking industry has always been a vital part of the business economy with thousands of manufacturers, retailers, and distributors depending on effective transportation, and trucking services to ensure timely delivery of goods. However, as the need for better delivery and hassle-free logistics keeps rising, getting the right trucking service becomes overwhelming.

Whether you’re managing a small business or running a large-scale enterprise, partnering with a dependable logistics company in the Philippines really does make a significant difference. Let us help you find the right partner with the following five key tips on how to find an excellent trucking service provider.

Assess Their Experience and Expertise

In logistics, one size does not fit all. An experienced trucking service company is knowledgeable of the quirks of hauling goods around the Philippines, including dealing with high-traffic cities to challenging deliveries in the country.

Do a background check on the duration the company has been running in the business as well as the nature of the cargo they handle.

  • Are they handling small parcels, bulk, or delicate items?

With a service provider that has next level of expertise and experience you can ensure that the goods to be delivered will arrive at the destination safely and on time.

Determine Fleet Size and Equipment Quality

Trustworthy trucking companies rely on well-kept vehicles and up-to-date machinery. Check for the size of their fleet and if the trucks that they have can accommodate your needs volume-wise.

A good logistics company will invest in high-quality vehicles, tracking, and safety to operate efficiently. In addition, GPS tracking and refrigerated trucks can be a great plus point, if you have high-value goods or goods that can be damaged easily.

Check Their Network and Coverage

Prior to signing a contract, be sure that the provider is able to accommodate your delivery locations. Some trucking service providers serve regional routes, and some provide coverage nationwide. If cross-border transport is involved in your business, think of teaming up with firms that work together with international freight forwarders for smooth combinations of local and international logistics.

Choosing a provider with an extensive network ensures your goods reach their destinations faster and with fewer handovers, reducing delays and potential damage.

Verify Their Record of Performance & Trustworthiness

Trust is one thing but credibility is everything in logistics. Seek a trucking service company that has a history of timely deliveries and good service to the customers.

Check client reviews, testimonials, and industry certifications. Reliable companies are transparent about their processes and provide real-time updates on shipment statuses. The ability to consistently deliver as promised is a strong indicator of a trustworthy partner.

Compare Prices Without Compromising Quality

We all know service cost matters, but it shouldn’t be the determining factor by itself. Though it is tempting to select the company that has the lowest rates, making the selection purely on the basis of prices might result in unstable service and spoiled goods.

More than that, strive for value for money. Compare prices, inclusive services, and value-added services like insurance and warehousing. The Philippines’ best logistics company offers competitive prices without the compromise of safety, speed, and quality of service.

Make Sure Your Goods are Secure with Excelsior!

At Excelsior Worldwide Freight Logistics Corporation, we believe that trust, integrity, and exceptional service are the foundations of lasting partnerships.

For over 15 years, we have helped businesses keep their supply chains running smoothly by providing expert advice, reliable trucking solutions, and seamless coordination with international freight forwarding companies. Our clients trust us to deliver their shipments safely and on time, giving them peace of mind every step of the way. As we move forward, we remain committed to bringing you faithful service, optimized solutions, and unwavering support, every shipment, every time.

The Six Most Critical Issues In The Philippine Trucking Industry

5 Problems that the Philippine Trucking Industry is Facing Today

For the past decades, the Philippines has been undergoing some constant changes specifically in the trucking industry. Many trucking companies responded by allowing themselves to adjust in order to maintain their foothold in the growing competition.

Despite the recent improvements in the Philippine economy nowadays, the trucking industry seems to be on a race of its own, exerting a sense of pressure and urgency for everyone involved especially the drivers. This event leads to the emergence of new problems and issues that continue to bring detrimental effects on the nation’s trucking industry.

Below are six most critical issues that the Philippine trucking industry is dealing with today:

  1. Excise tax on Fuel

Together with the implementation of TRAIN Law in 2018, the Philippine government also added excise tax on fuel. Diesel users such as trucks will receive a 3-tranche increase which will occur in the following order: Php 2.50 per liter in 2018, Php 4.50 per liter in 2019, and Php 6.00 per liter in 2020. Taxes on fuel has the same effects as the oil price hike as it adds further encumbrance on the part of the truckers.

  1. Age Restriction on Trucks

In the latter days of November 2018, the Department of Transportation (DOTr) suspended the implementation that restricts the age limits of trucks to 15 years. Any trucks that are more than that age threshold will be phased out. Though this move by the government is highly beneficial for the industry, future truck phase-outs in other areas of the country are still in danger of this regulation.

  1. Traffic Congestion

While some people might say that heavy traffic means that the economy is currently adjusting as it grows, we can also see it as a double-edged sword. Traffic congestion has a large number of negative effects on the environment, health, and economy of a country in a variety of ways. It could hinder the productivity of truckers as they are forced to waste a significant amount of time. What’s even worse is that it could persuade the government to impose traffic policies such as a city-wide truck ban.

  1. Oil Price Hike

Oil price hike takes place when the cost of oil starts to increase by a certain percentage. There are a lot of factors that influence the oil prices in the Philippines, such as the currency exchange rate, the supply and demand, and the price of oil in the world market. Unfortunately, most trucking companies prefer not passing the cost to their clients, sustaining a great deal of financial loss in the process.

  1. Truck Ban

Several places in the Philippines particularly Metro Manila has already experienced truck bans because of severe traffic congestion. Because of the size of the trucks, the traffic management agencies often put their blame to such vehicles as the real culprit of congestion. Even some motorists have claimed that trucks are the actual initiators of the problem as they are normally perceived as slow-moving the usual cause of car accidents. The repercussions of this policy could endanger the whole trucking industry, as the banning of trucks can affect not only the providers of these services but also the overall Philippine economy itself.

  1. Implementation of Maximum Gross Vehicle Weight (MAGVW)

According to the Confederation of Truckers Association of the Philippines, the biggest challenge that they need to overcome this year is the implementation of maximum gross vehicle weight for the trucks. Though this regulation’s main purpose is to avoid overloading by limiting the weight of the trucks, the maximum weight allowed for truck codes 12-2 and 12-3 (41,500 and 42,000 kg respectively) could be a major problem indeed. This is because the average weight of containers that the trucks usually carry is around 30-36,000 kg, and if the average weight of the tractor head and trailer would be added (15,000 kg), the vehicle will reach a total weight of about 45,000 kg which is already a violation to the law.

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Importer Tips: How to Avoid Shipping Storage and Demurrage

If you’re new in the importing or exporting world, you might be surprised to receive an unexpected bill showing demurrage, storage & detention charges – terms that you haven’t even heard yet, let alone know the cause. Or you might have experienced this already for some time now, but either way, these costs might hurt your pockets big time. So, to clear up your confusion, let’s talk about when you might see these charges, and how you can avoid them.

Storage

Image from 2eastwest.com

Storage charges accumulate at port facilities, airline terminals, and bonded warehouses when a container remains at the site beyond the allotted “free days” provided by the airline, warehouse or Arrastre operator after arrival.

Storage Fee- with standard rate for FCL (see PPA memo). Standard Free time 5 days.

for LCL (see BOC CMO 41-15)

Cut your losses by following these tips to avoid storage cost:

  • Ensure that there are no issues with the shipping documents. It is the common reason for delaying the release of container.
  • For regular cargo, consider a Seaway Bill of Lading/Telexed Release instead of an Original Bill of Lading.
  • Always keep a keen eye over your shipment and the arrival of the vessel, so you will know exactly when you free time initiates and expires.
  • Advise broker for immediate releasing.

Demurrage

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Image from thewillnigeria.com

Demurrage fee is levied by shipping lines for containerized shipments only, however, this fee is charged when the containers are still full and has not been cleared up by the consignee within the seven (7) days free time & extendable as per approval of the shipping line.
Menacing as it is, here are some tips to avoid demurrage charges:

  • Talk with your freight forwarder and know in advance a number of free days granted.
  • Dispatch your shipment as early as possible. Excelsior Worldwide Logistics can help you clear your cargo ahead of time provided that all documents handed in a timely manner.
  • If your shipment comes in volumes, you may request an additional free time from your freight forwarder or carrier. (Most often, the volume of your shipments should be close to 1,000 containers per year to be granted for extended free time.)?
  • Ensure that your trucking company can pick up the shipments within the allotted free time, and a trucker has been assigned to your shipment. Set-up a backup or alternate trucker in the case of any circumstances that will prevent them from picking up your cargo in a timely manner.
  • Analyze all the papers containing the terms and conditions of your transportation, warehousing, and sales contracts to find out the situations under which your company may be held responsible for demurrage charges.

Detention

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Image from chinashippingaustralia.com

When the container has been picked up and out gated from the terminal, it must be returned within 72 hours otherwise detention charges will be imposed.

As always, it is important to seek the help of a licensed customs broker and freight forwarder to help you avoid or lessen this unplanned additional charges you might incur in importing/exporting process. They can help you understand the whole shipping process, and makes sure that you stay ahead of schedule and your cargo will move in a timely manner.

Allow Excelsior Worldwide to help you ensure a storage free -demurrage free clearance of shipments. Contact us today to learn more about our global logistics. Call (063) 5259775 or visit our website www.excelsior.ph

Importer Facts: What to Pay and Not Pay? (Infographic)

Importation is quite tricky, especially if you’re not aware of the costs that come with it. It is important to understand the basic charges you have and you don’t have to pay in order to come up with a solid figure you have to prepare when your goods have finally arrived in the port; cleared and delivered to your warehouse.

 

Aside from the product you have purchased abroad, here are some of the costs that you should assume from the importing process.importer-facts-what-to-pay-and-not-pay-hd

 

Advantages of Having an Honest Customs Broker

Advantages of Having an Honest Customs Broker

Professionalism and Integrity have always been an imperative aspect in every industry. In trading business, it is an utmost priority to choose an honest and capable customs brokerage firm to ensure that the import and export operations are done diligently and legitimately. Likewise, getting your shipments abroad or on the local shores without worrying about legal and ethical dilemmas is the core purpose of why customs brokerage are here to be present.

Check our thoughts below and see why a truthful and straight to the point customs brokerage company is going to be your greatest ally in your import and/or export business.

  1. They Will Take Proper Care of Shipping All Your Products

Steel Container on Container Dock

Image from Pexels

A genuine customs broker makes sure that all of your freights will arrive at your local warehouse on-time and with no legal requirements bypassed. A legitimate customs brokerage firm ensures that you are complying with various Customs Regulations. If these regulations are neglected or avoided, it may cause time delay on delivering the shipments, or worst, get the shipments confiscated by customs authorities.

If you leave your customs responsibilities to a non-seasoned and incapable customs broker, you might just be surprised to see your products all piled up in the port- seized by authorities, and you ending up paying a large sum of penalties or even face criminal liabilities, which can taint the reputation of your company.

An honest customs broker, aside from assisting you with all legal requirements, will give you advice on additional up-to-date Customs compliance on constantly changing trade rules and security requirements- thus protecting your business against costly penalties and customs audits.

  1. They Allow Your Company to Retain More Money Than Losing It.

Free stock photo of money, finance, bills, bank notes

Image from Pexels

Basically, doing the customs responsibilities in-house requires having various hardware and software to carry out the task. In addition, these installations will also incur periodical maintenance cost and other associated overhead related to having an in-house Customs expert. A customs broker firm who is dedicated to serving its clients truthfully and to the full extent is equipped with various programs and technology to help you perform your import and export task or communicate with Customs officials.

Also, although it is the basic duty of a customs broker to steer your company clear of shipments problems, they will also seek out and take advantage of applicable trade agreements opportunities. Trade agreements like ASEAN, JPEPA, and EFTA free trade agreement can reduce shipping duties and taxes, allowing your company to retain more money.

 

  1. An Honest Customs Broker Will Tell You Which Goods They Specializes In

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Image from Pexels

Truth to be told, some customs brokerage companies today doesn’t mind the type of product that your company is shipping. Having said that, it is important to get an honest customs broker that will tell what kind of products they specialize in or is at least familiar with the goods you’re shipping. For instance, if you’re shipping electronic components for export, you don’t want a broker a broker that mostly handles household commodities.

If your customs broker is honest with you, they will tell you right ahead that they are not yet capable handling the product you want to ship, but given that a professional relationship has been established, they will give you the best options on how you can ship your products with without worrying too much about its safety. Of course, this includes trust, formal agreements, and other arrangements that will ensure that your goods are handled properly.

  1. They Understand Your Goals and Reason for Shipping.

3 Women in Suit Sitting

Image from Pexels

Another thing that makes an honest customs broker investment worthy is that they analyze your goals and reason for merchandising such product. This not only enables them to form a much stronger partnership with you but also giving them the foundation for the proper distribution strategy that they have to employ.

A professional broker will take an interest in learning the mechanics of your business and asks questions about your business model- giving an outside yet fresh perspective and insights subsequently. To achieve this, a two-way communication must exist first, and a thorough understanding of your company’s key strengths and weaknesses must be established during the negotiation stage.

 

  1.  They Are Willing to Correct Mistakes and Prompt for What’s Missing.

 

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Image from Forbes

If you want to seek the help of a customs broker, you must first provide all the necessary paperwork to them. And because you are ultimately responsible for the filing and paying taxes and duties, you should look for a reliable and a sincere customs broker who are willing to correct mistakes and is quick in notifying you for missing important details. If it is your first time to ship products, an honest customs broker should recognize that you are right after you talk to them. They will assist on every aspect of customs along the way, and wouldn’t wait for you to give them what they need.
They are proactive, and will provide it because it is part of the relationship. Given that you have checked their credibility- some unique situations wherein they were able to help other companies on certain issues or their level of emphasis on details, accuracy, and compliance- it is guaranteed that a synergetic type of relationship will ensue between your chosen broker and your company.

In conclusion, a reliable and ethical customs broker should give you the peace of mind and confidence in every importing and/or export endeavors. At Excelsior Worldwide Freight Logistic and Excelsior Customs Brokerage, we ensure that your shipments will be able to cross international borders in a safe and efficient way. And because we strongly believe that your time is a critical element in your business strategy, we want to offer you a customs brokerage service that is  well-grounded on professionalism, integrity, and efficiency.

To know more about Excelsior, visit http://www.excelsior.ph.

Excelsior Worldwide Logistics Corp.