The Philippine Ports Authority (PPA) on Wednesday said port charges remaining unchanged at its facilities helped stabilize the general cost of goods and services across the Philippines.
The PPA cited data from the Philippine Statistics Authority showing that after having consistently risen over six months, transport and logistics costs contracted to minus 0.2 percent this year versus the 3.6 percent expansion a year earlier.
The transport index, which posted a 3.6 percent annual increase in July, recorded a 0.2 percent decline in August. The PPA said the shift was influenced by factors including lower fuel prices, improved transportation efficiency, and competitive tariffs in the logistics sector. These developments proved crucial in easing the cost of moving goods, benefiting both businesses and consumers.
“The Philippine government’s infrastructure improvements have also played a key role in reducing transportation costs. Investments in road networks, enhanced public transportation systems, and upgrades to port facilities have contributed to smoother traffic flow and faster logistics operations,” the PPA said.
“The reduction in congestion has allowed for quicker delivery times and reduced fuel consumption,” it added.
Likewise, the steady port tariffs helped create a more predictable cost structure for businesses reliant on imports and exports.
“As logistics costs declined, consumer prices in various sectors also stabilized. Products ranging from food to electronics benefited from lower transportation costs, keeping prices in check despite persistent global inflationary pressures. For low-income households, which are particularly vulnerable to inflation, the easing of transport costs has provided some relief, especially in basic necessities like food and essential goods,” the PPA said.
Keeping transport fees competitive added a layer of predictability for businesses and encouraged more efficient operations, the PPA added.
Nevertheless, the PPA said challenges remain because of global uncertainties, such as supply chain disruptions, fluctuating fuel prices, and geopolitical tensions that could potentially reverse the trend.
“Economists caution that while the current slowdown in inflation is promising, vigilance is necessary. The government must continue its efforts to boost economic resilience, address food security concerns, and keep inflation under control to avoid potential price shocks,” the PPA said.
