THE absence of “backloads” in transporting goods within the country was considered as one of the factors that is driving the logistics costs high, the European Chamber of Commerce and Industry, Inc. (ECCP) has noted.
Among the issues that were brought up during the logistic conference late January are that shipping and logistic companies tend to charge the customers double for a round trip since trucks no longer carry a load when it returns to its base.
“They said that a lot of vessels coming this way and going back empty, and I agree that that really influences your pricing kaya mahal (that’s why it’s expensive). That is really the backload,” ECCP executive director Antonio Peralta said in an interview with SunStar Davao.
He said one of the solutions being suggested was the establishment of an integrated information database on the production on the farm level and the requirement of the markets.
“Somebody brought up ang kulang sa information. The government should have this information,” he said, adding that he has told the representative of the Mindanao Development Authority (Minda) who was present in the conference, about it.
Davao City Chamber of Commerce and Industry, Inc. president John Carlo Tria said he knew some companies that are developing applications that can book cargo space.
“That will help the uncertainty of return cargo that some of the cargo handlers and forwarders always like to raise. That if they know that there is a booking on the cargo space especially in the less container load segment, then it is possible not to charge for the full trip,” he said.
“I think that is also one thing that we will challenge with our information technology sector. It can provide a solution,” he added.
Meanwhile, Department of Trade and Industry in Davao Region trade and industry development division chief Arriel Nengasca urged the logistic companies to link with the agribusiness sectors in the region.
“We are implementing the industry cluster approach. We organize every sector in a group the whole of the supply chain. I would like to ask the logistics companies to join these clusters because you are part of the supply chain,” he said.
Peralta said the logistic conference, which gathered representatives from the government and logistic companies in the city, is a preparation for a bigger convergence they will organize to address the issues.
“This is just the start of a bigger conference. As we see it, it will look at trading from the perspective of the domestic shipment and international shipment hoping to come up with resolutions that we can forward to the different chambers of commerce, and to the government to act on,” he said.
He urged the government to align their programs to the need of the private sectors most especially the micro, small, and medium enterprises (MSMEs) and for the private sectors to let the government know of their requirements.