Philippines: Strong domestic trade drives cargo volume higher in Q1

• Apr 26, 2022

MANILA, Philippines — Cargo volume handled by the country’s ports grew in the first quarter, driven by strong domestic trade which offset a slight decline in foreign cargoes.

Data provided by the Philippine Ports Authority (PPA) to The STAR showed that cargo throughput reached 58.24 million metric tons (MMT) in the first quarter, up 2.66 percent from the 56.73 MMT in the same period last year.

The agency attributed the growth to the continuing positive effects of pandemic restrictions and reopening of global and domestic markets, which improved trade activities in and out of the ports.

Domestic cargo saw a 6.86 percent increase during the period to 25.42 MMT from last year’s 23.79 MMT.

Foreign cargo, on the other hand, declined by 0.38 percent year-on-year to 32.82 MMT in the first quarter as a result of a drop in export trade by 5.03 percent.

Citing reports from various ports nationwide, the PPA said among the major reasons for the drop in export volume include decreased export transactions for sand industry in Botolan, Zambales going to mainland China; decreased operations and transshipment of mineral fuels, metal products, and refined petroleum products from Batangas Port to other trading countries like Korea, Japan, China, and Taiwan; and lower exports of limestones coming from the ports in Bohol.

“Overall foreign cargo was somehow affected by Russia-Ukraine war since the country is a net importer of fuel, which further pushed inflation, thus making both import and export trading more expensive,” the PPA said.

For the second quarter, the PPA is projecting a conservative three percent growth in cargo volume given that the period is the start of the rainy/typhoon season in the country.

“The slow demand and supply of commodities because of the continuing higher fuel prices was likewise considered in the assumption,” it said.

The PPA is looking at a 7.5 percent growth in cargo volume for the entire year after volume returned to pre-pandemic levels in 2021.

Source: https://www.philstar.com/business/2022/04/26/2176689/strong-domestic-trade-drives-cargo-volume-higher-q1