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Top 5 Products Exported by The Philippines

excelsior on September 15, 2019

Top 5 Products Exported by The Philippines

The Philippines is a country in Southeast Asia that is rich in natural resources. Several of these resources are quite rare in some areas of the world, which gives the Filipinos an opportunity to earn a living by converting it into products that we export today.

If you’re one of those business folks who are either looking for an ideal line of products to sell in an international scale or in the verge of expanding your business internationally, this article is for you. In addition to looking for a suitable freight forwarding company to keep your supply chain up and going, you must also familiarize yourself in five of the top-selling products exported by the Philippines:

  1. Gems, and other precious metals

As recent as last year, the Philippines was able to accumulate an amount of $1.5 billion in exporting precious metals and gems on international markets. According to records, the leading and most expensive precious metal in the country is gold. The amount of gold exported from the Philippines is ten times greater than the amount spent by importers who bring gold into the archipelago.

Additionally, there is also a growing demand in pearls found in various seas of the Philippines. Those that were produced by the largest immobile bivalve mollusk in the world, Tridacna Gigas can weigh over 34kg and can be a couple of feet long. Filipino pearl exporters earned an amount of $15.3 million by selling pearls globally. As for gems, organic gemstones are also on the rise, with exporters making a million dollars per year.

  1. Fruits, nuts

Examples of fruits and nuts that are widely exported in the Philippines are coconut, banana, pineapple, soursop (guyabano), papaya, guava, calamansi, tamarind, peanuts, among others. Filipino cultivators of these fruits earn a total amount of $2.1 billion, which comprises 3.3% of overall exports from the country. The Philippines is the second-largest coconut user on the world, next only to Indonesia.

  1. Optical, technical, and medical apparatus

Aside from natural resources like fruits nuts, gems, and other precious metals, the Philippines is also a competitive exporter of tools and equipment used in the medical field. Filipino manufacturers of these products gained a whopping $2.2 billion from international buyers around the globe.  Examples of this equipment are:

  • Optical Fibres, Optical Fibre Bundles, and Cables
  • Photographic Cameras; Photographic Flashlight Apparatus
  • Oscilloscopes, Spectrum Analysers
  • Liquid Crystal Devices, Lasers
  • Other measuring or checking instruments and machines

  1. Machinery, i.e., computers

Machinery and computers that are widely used in some parts of the world actually came from the Philippines. These can range from office machine parts, integrated circuits, semiconductor devices, insulated wires, and even whole computers itself. Companies selling machinery and computers in the Philippines earned $9.6 billion in the year 2018 alone.

  1. Electrical machinery, and other similar equipment

Based on the 2018 records, electrical products are still in leading products exported by the Philippines. Even the government acknowledged this fact as the Department of Trade and Industry (DTI) stated that such products are the key exports of the country. The Philippines exported $32.9 billion worth of electrical machinery and other similar equipment which account for almost half (48.7%) of the country’s total exports for last year.

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The Six Most Critical Issues In The Philippine Trucking Industry

excelsior on August 15, 2019

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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Current State of Port Congestion in the Philippines

excelsior on March 18, 2019

Current State of Port Congestion in the Philippines

Basically speaking, port congestion refers to the situation wherein a growing number of vessels are starting to queue up outside the port in order to wait for any available space where they can load or offload their cargo. And speaking of the Philippines, maritime-related problems such as port congestion can be quite inevitable, considering the fact that vast oceans and seas geographically surround the country.

Before the advent of their colonizers, the settlers of the Philippines once created wide trading networks within every island that stretches as far as to other neighboring countries like China, Japan, Cambodia, India, Borneo, and the Moluccas.

During the Spanish rule, the trading relations with the said countries continued to flourish, only this time the Philippine capital of Manila has been turned into the center of commerce in the east closing its ports to any countries except Mexico, establishing the what was known as the Manila-Acapulco Trade or the Galleon Trade.

But enough with the history, for this article, will be discussing all about what’s the current situation of the ports here in the Philippines. Intense congestions concerning our harbors can bring detrimental effects for the overall economy of the country in the long run. This is because time is extremely precious for importers, exporters, freight forwarders and other logistics services provider. And with the long delays brought by the port congestion, their operations will surely be disrupted indeed.

How’s the port congestion in the Philippines nowadays?

Based on the most recent news published on various trusted news sites, it seems like there’s some occasional fiasco going on with the government and the Local Truckers Association of the Philippines. This implies that the problem does not lie on the number of the vessels, but on the long queue of trucks waiting inside the terminals. According to PortCalls Asia, the government denied the allegations of any cases of port congestions, for this issue’s roots, can be traced back to a separate problem about by “the high number of empty containers clogging the  terminals and this gave the impression of port congestion by the policy of port operators to limit the entry of empty container vans.”

Lest according to the government, the flow of operations within the Philippine ports especially Manila is still within the threshold of being manageable under international standards. As recent as the previous years, they stated that the average dwell time of the ports are seven days, and the utilization level of yards goes in for over 85%. Meanwhile, the quay crane production rate still holds on to 24.84 moves per hour even bearing the international standard of 25.

How this “empty containers” type of port congestion affects the economy?

While there it can be implied that there is nothing to worry about, the congestion of the empty containers in some ports in the Philippines can pose problems like late deliveries of several kinds of goods. It seemed clear that limited space for container yards somehow affects the cost of trucking in the country.

The Conclusion

It can be true that port congestion in the Philippines does exist in a way or two.

However, as stated in the book “Easing Port Congestion and Other Transport and Logistics Issues,” the best way to deal with it is to accept the fact that in most cities like Manila, factors such as port traffic, economy, and human population far outgrows the infrastructures that help connect the ports to nearby provinces that host industrial and commercial estates.

As of now, what we can do now is to trust the government’s figures and hope for the best.

 

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The Importance of Being an Accredited Importer and Exporter in the Philippines

excelsior on September 14, 2018

The Importance of Being an Accredited Importer and Exporter in the Philippines

Over the last five years, the Philippines has become one of the most competitive economies being the 38th largest export economy worldwide and forecasted by HSBC as a potential 16th largest economy by the year 2050. Given the fact that the country’s economy itself has advanced, the implementation of trade policies is stricter and the standards, higher. Having that said, here is a detailed list and account of the importance of being an accredited importer and exporter in the Philippines:

Recognition

Businesses who aspire to be accredited are carefully assessed and evaluated by a neutral accrediting body based on numerous requirements and conditions, providing clients with a reliable and fair basis when choosing an import and export company and a guarantee of quality service. After getting accredited, chances are you will be a premier choice in the import and export industry.

Promotion and advertising

Getting accredited is an excellent marketing strategy because after passing the accreditation assessment, you will be awarded a certificate of accreditation that you can publish in your website to demonstrate your commitment to providing quality to your present and potential clients.

Keeping ahead of the competition

Not every import and export business volunteers to undergo the accreditation process because they lack knowledge of its importance and only a few passes the assessment done by the accreditation body.  That is why getting accredited gives you an edge over your competitors.

Exemptions

As an accredited importer, you have the privilege of getting exempted from payment of import duties upon the observance of formalities and regulations, while an unaccredited business doesn’t.

Minimized expenses

If you have numerous shipments to be made, you can reduce your expenditures by directly processing your entries with the Bureau of Customs instead of paying third-party consignees to do the job.

The main objectives of accreditations in the Philippines are to prevent smuggling, combat tax fraud, and evasion, and to transform the Philippines into an exporting nation through cooperation between government and private entities.

But, as you can see in this article, it is just as beneficial to every business inside the country because it encourages each business to improve and excel in their chosen industries constantly.

Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import and export legalities and are willing to help you get accredited.

We also conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. 

Contact us today at (063) 525-9775 or email us at wecare@excelsior.ph

To learn more about the importance of being an accredited importer in the Philippines, see this infographic on the advantages of being an accredited importer.

 

Sources:

Excelsior Worldwide Logistics Corp.