THE Mandaue Chamber of Commerce and Industry (MCCI) has teamed up with the stakeholders in the logistics sector to address issues affecting the province’s supply chain.
At present, the logistics sector is facing pressing challenges such as high inflation, congestion and lack of manpower, among others, according to MCCI president Mark Anthony Ynoc on Thursday, Sept. 12, 2024.
Ynoc said that logistical congestion is a major factor driving inflation. When the supply chain faces challenges—such as port congestion, transportation delays or inadequate infrastructure—these disruptions increase the cost of moving goods. As a result, these added expenses are passed down to consumers, contributing to the overall rise in prices.
“Logistics is the facilitator of trade. It is the backbone of our economy and the driver of economic activities. So whatever happens to logistics or supply chain, it affects the prices of our consumer goods. It affects the inflation rate,” said Ynoc during the chamber’s first Logistics Conference which is in partnership with the Chamber of Customs Brokers Inc. -Cebu Chapter and the Visayas Unified Trucker Association Inc.
“And whatever happens to the logistics sector we pass it on to the consumers. But we also don’t want our consumers to be plagued by high prices,” he added.
Inflation in Central Visayas eased to 3.4 percent in August 2024 from 4.5 percent in July. Cebu’s inflation for the month declined to three percent from four percent in July.
“Right now, we are losing billions of pesos due to traffic congestion, port congestion and the unstable rise and fall of gasoline prices. We also face a shortage of manpower in the sector,” said Ynoc.
He said that conferences like this provide a platform for industry leaders to discuss critical challenges, exchange best practices and advocate for policies that promote investments in transportation infrastructure, digitalization and regulatory reforms given the continuous growth of e-commerce, which requires more robust and efficient logistics networks.
He explained that policies supporting the development of modern infrastructure, like well-maintained roads and ports, help speed up the movement of goods and lower operational costs. However, a lack of investment or delays in customs and trade processes can create obstacles, slowing down the supply chain and hindering economic growth.
“While some policies have facilitated growth by reducing trade barriers or improving the ease of doing business, others have added complexities that have required us to adapt quickly. For instance, stricter emission standards, while essential for a sustainable future, have required investments in cleaner technologies and more efficient transportation methods. Likewise, changes in duties and fees can influence how competitive we remain in the market,” said Ynoc.
Cebu’s logistics sector, according to Ynoc, continues to thrive, with businesses showing resilience and strong growth in the post-pandemic landscape.
“Congestion is actually a good problem but there are also challenges that we need to accomplish, otherwise will be left behind by so many other regions and our consumer prices will be out of control,” he said.
The Philippines landed at the 43rd spot in the World Bank’s (WB) Logistics Performance Index (LPI) 2023, the country’s highest ranking in the logistics report since 2007.
The country leapfrogged by 17 spots from its ranking in 2018 at 60th place.
The LPI ranks a country’s logistics performance in terms of customs efficiency, quality of trade and transport infrastructure, ease of arranging competitively priced shipments, competence, quality of logistics services, tracking system and timeliness.
In Southeast Asia, the Philippines’ ranking is tied with Vietnam but is higher than Indonesia (61st) and Cambodia (115th). However, it is behind Thailand (34th), Malaysia (26th) and Singapore (1st). / KOC