Understanding the Predominance of Sea Trade in Philippine International Commerce
The Republic of the Philippines, a key player in Southeast Asia, has a dynamic and diverse trade landscape. A significant portion of its international trade, including both imports and exports, is conducted through sea trade. This article delves into the extent of sea trade in the Philippines, its implications for various regions, and the factors influencing its predominance.
The Dominance of Sea Trade in Philippine International Commerce
Sea trade stands as the backbone of the Philippines' international commerce, particularly when compared to air cargo. Over 99% of the international trade activities in the Philippines are conducted via sea, a figure that underscores the importance of maritime routes in the country's economic ecosystem. While there are exceptions, such as perishable items which are transported by air, the dominant role of sea trade is evident in the logistics and operations of the logistics and trade sectors.
Perishable Goods and Air Cargo
The transportation of highly perishable goods, such as fresh produce and live animals, often requires the use of air cargo due to time constraints and cold chain requirements. For instance, the major cities in Metro Manila, Cebu, and Davao see a significant portion of their perishable imports arriving by air. This ensures that the goods are of the highest quality and freshness upon arrival. However, in cities without international airports, only a small amount of perishable goods may arrive by air, typically timely periodicals and medicines.
Challenges in Small and Remote Areas
In smaller and more remote areas of the Philippines, the reliance on sea trade becomes even more pronounced. The logistics involved in sea trade can be prohibitive, with sea shipments often costing less than air cargo but taking much longer to arrive. For example, a small package to the U.S. might cost around $70 via air, whereas a sea shipment might cost only about $3 but would take three months or more.
In these smaller regions, delivery schedules can be unpredictable, with items often out of stock or stock arriving only on the next ship. This can lead to longer wait times for essential goods, impacting the daily lives of residents. To combat this, many chose to order items well in advance, such as ordering a Christmas-specific good like a real Virginia ham months before the holiday, to ensure timely delivery.
Effect on Consumer Behavior
The nature of sea trade influences consumer behavior in smaller areas. Island living in these regions means that shoppers have to consider the availability and timing of goods more carefully. Unlike in the U.S., where consumers can often rely on same-day or next-day delivery services, the logistics of sea trade demand patience and forward planning.
Conclusion
Sea trade plays a crucial role in the Philippines' international commerce, supporting the country's diverse economic activities. The predominance of sea trade is evident in the logistics and operations of both import and export activities, with only a small portion relying on air cargo for time-sensitive or perishable items. As the Philippines continues to grow, the importance of optimizing sea trade routes and enhancing logistics infrastructure becomes increasingly vital.