10 Benefits of Logistics Company in the Philippines On Inter-Island Shipping

What is Inter-Island Shipping?

It refers to the transportation of goods domestically between islands. Inter-island shipping is a popular mode of shipment in archipelagic countries like the Philippines. Because it is essential for moving small and large quantities of products from port to port, a logistics company in the Philippines usually offers a wide variety of cost-efficient solutions for businesses and individuals.

How is Inter-Island Shipping Done?

Goods can be transported inter-island through two kinds of services: tramp or liner. Tramp services allow chartering of a whole vessel to transport cargo, and is usually inclusive of stevedoring and fuel. Its operation is flexible and sails according to the availability of cargo. 

Liner services, on the other hand, relies on a specific schedule and route, the same way roll-on/roll-off/RoRo vessels do. A similar logistics company in Metro Manila charges cargo on a per ton basis rather than a comprehensive cost. Liner services are flexible and predictable, making it a good option for individuals, SMEs, rolling cargo, and irregular shipments.

Industries that Benefit the Most from Inter-Island Shipping in the Philippines

There is no doubt that domestic maritime shipping routes are crucial drivers of the Philippine economy. From agriculture and manufacturing to ecommerce, it mobilizes various sectors and boosts income by cutting down travel time and expanding coverage of regional markets. A 2017 study by the Philippine Institute for Development Studies (PIDS) reported an increase of about 7% in household income of agricultural households located near a port. They also cited that travel time between Luzon and Mindanao had decreased by 12 hours and costs were lowered by 30%, thanks to RoRo improvements. 

By utilizing the broad services of a logistics company in the Philippines, the following industries can experience a significant business growth:

• Agriculture
• Ecommerce
• Food and Beverage
• Energy
• Retail
• Construction
• Automotives
• Manufacturing
• Pharmaceutical

10 Benefits of Outsourcing a Logistics Company for Inter-Island Shipping

• End-to-end fulfillment capability

A logistics company in the Philippines has the complete resources to manage the logistics process from start to finish — from warehousing and inventory management, to order fulfillment, and nationwide transportation. Best of all, if your business only requires first, mid, or last mile fulfillment, this can also be achieved through the help of logistics experts.

• Improved business connectivity

Shipping to various major and secondary ports in the country can bring economic benefits to local businesses. It links manufacturers, suppliers, and distributors, at the same time, improves access to raw materials, enables faster assembly, and ensures consistency within the supply chain.

• Good value for money

Partnering with a logistics company in the Philippines allows you access to their all-inclusive solutions and value-added services. This way, businesses can minimize the costs of in-house logistics manpower and infrastructure. Additionally, shipping companies consolidate and manage large volumes of shipment from multiple clients, which allows them to charge lower rates for small shipments. This provides substantial cost-cutting advantages for small and medium-sized companies.

• Customizable solutions

Different cargo types require diverse handling, storage, and shipment conditions. While the services of a logistics company in Metro Manila may be standardized across its clients, it can also configure these provisions according to one’s business needs.

For example, cold chain transport can be optimized according to the urgency of a time-sensitive product, such as in pharmaceutics. Oversized, bulky industrial equipment can be disassembled before loading on a voyage from Manila to Mindanao, and reassembled once it arrives.

• Streamlined shipment process

Whether your business operates its own truck deliveries or outsources a trucking service, it can seamlessly transition from land to sea thanks to the convenience of roll-on/roll-off shipping. With less points of contact, the entire process protects your products from potential risks of damage. It also enables direct door-to-door delivery or to a distribution center after ‘roll-off’ from the vessel.

• Expert cargo handling

A reputable logistics company in the Philippines trains its professionals to be highly skilled at stowing, securing, and carrying cargo units. To prevent untoward incidents caused by improper cargo practices, these companies abide by international and domestic maritime guidelines and codes when handling all types of cargo.

• Cargo risk assessment

No matter the nature of your commodity, it will be susceptible to various hazards during handling, stowage, and voyage. It is wise to consult with a logistics company in Metro Manila, especially if your business is new to cargo shipping, as industry experts can perform a thorough risk assessment and mitigation strategies to prevent damage to cargo. This can also prevent you from sudden financial losses.

• Reduced transit times

Logistics services like RoRo allow continuous delivery on the road upon reaching the destination port. On-demand tramp services assure flexible lead times, while fixed liner services provide continuous, frequent, and predictable dispatches. An advanced logistics company in the Philippines also integrates technology to optimize its routes and monitor cargo that is under way. By utilizing this service, businesses can meet strict deadlines, fulfill faster lead times, and build customer trust.

•  Opportunity for business expansion

With its diverse port links to major economic hubs across the country, logistics companies can leverage your business by bridging you to wider markets. Merchants that operate within the Visayas region, for example, can distribute their products to Luzon via the Batangas Port, and vice versa. This is the primary reason why inter-island shipping is one of the main drivers of economic progress in the regions.

•  Overcome complex regulatory requirements

Cargo of certain nature, such as hazardous chemicals, fragile goods, agricultural and aquatic items, and regulated items require specific permits and clearances. To save you the hassle, a reliable logistics company in the Philippines can obtain the necessary documentation on your behalf. As part of their services and compliance to shipping regulations, logistics experts are knowledgeable at supplying the right permits to allow you to ship your products.

The intrinsic value of inter-island shipping is what makes it a desirable mode of transport for many successful businesses in the country. With the varied services offered by logistics companies, there is always an option to suit businesses of any size. Choose the right logistics service provider that will help you achieve meaningful growth wherever you are in the Philippines.

ALSO READ: All You Need to Know About Local Courier Services in the Philippines

Chelsea Logistics offers an array of maritime and multimodal transportation services for corporate clients. We deliver liquid bulk, containerized, and loose cargo around Luzon, Visayas, and Mindanao. Our subsidiaries also accept express shipments alongside passenger travel for a swift and smooth inter-island shipping. Connect with us today and let us know how we can help you.