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Philippines garment, furniture exporters urge government to address logistics issues


Garment and furniture exporters in Philippines have urged the government to address the deteriorating shipping and logistics situation in the country.

Robert Young, Trustee, Philippine Exporters Confederation, Inc. (Philexport) and President, Foreign Buyers Association of the Philippines (FOBAP), said the garment industry is incurring millions of dollars in losses due to the supply chain squeeze.

Exporters are facing transport issues, including vessel capacity constraints and surging freight prices, which are leading to cargo delays and revenue setbacks.

This situation is creating production space issues which are creating a domino effect, such as] continuing delays in our shipment. Even if vendors finish production of their orders, if they are not able to move the goods, they don’t get paid, creating a cash flow issue, he added quoting two exporters.

This, along with other issues such as the slow release of permits and import license, rising cost of natural materials, and shortage of raw materials, adds to manufacturing costs and leads to continuing loss of business in favor of Vietnam and Indonesia.

Meanwhile, furniture exporters have asked the Chamber of Furniture Industries of the Philippines to help them find slots on vessels and address soaring freight rates.

Sergio Orti-Luis, President, Philexport, urged the government and the private sector to work closely together to effectively address the logistics constraints.