Robert Young, Trustee, Philippine Exporters Confederation (PHILEXPORT) and President, Foreign Buyers Association of the Philippines (FOBAP) has urged the government to address the deteriorating shipping and logistics situation in the country. Young said, the domestic garment industry is losing millions of dollars due to supply chain squeeze. Exporters are facing transport issues, including vessel capacity constraints and surging freight prices, leading to cargo delays of two weeks to two months and revenue setbacks.
This is creating production issues in the country besides delaying shipments delays and restricting cash flow, Young added. Besides slow release of permits and import license, rising cost and shortage of raw materials, it is adding to manufacturing costs and leading to continuing loss of business in favor of Vietnam and Indonesia. Sergio Ortiz-Luis Jr President, PHILEXPORT urged the government and private sector to work closely together to effectively address the logistics constraints.