Millennials and GenZs who are internet savvy will make a significant increase in parcels and shipments. We see that e-commerce rapidly changed the environment, and so we are adapting to the rapid change of e-commerce.
The sale of apparel sold in various e-commerce platforms, as well as electronic gadgets, are the top trends that are seen to rise in terms of shipments this coming holiday season, a top official of the local subsidiary of global logistics firm FedEx said on Friday.
In a media interview after a site visit to its Clark Airport base in Pampanga, FedEx Philippines’ managing director Maribeth Espinosa said the company expects a rise of apparel shipments coursed through various e-commerce platforms and electronics.
“Millennials and GenZs who are internet savvy will make a significant increase in parcels and shipments. We see that e-commerce rapidly changed the environment, and so we are adapting to the rapid change of e-commerce,” she said.
“Of course, the semiconductor company plays the role as customers will need a computer set or laptops they produce before they can go to the Internet. Also, we see seasonal goods being shipped by sellers during the Christmas season,” she added.
The top three countries that are being catered to by FedEx Philippines in terms of imports are the United States, Singapore and China.
Earlier, FedEx signed an agreement with Luzon International Premiere Airport Development (LIPAD), the operator and manager of Clark International Airport, to expand and upgrade its gateway in Clark, Pampanga in the Philippines.
Upon completion, the new FedEx facility will be more than double the size of the company’s current facility and will offer enhanced capabilities to support the growing demand for e-commerce, freight, and cold-chain shipments across the Asia-Pacific region.
Espinosa, however, cannot give a timeline for when the agreement will start, saying that the deal is still being finalized.
In terms of raising freight rates, Espinosa said their management is carefully evaluating the cost drivers in their facilities and prevailing market conditions before raising freight prices.
“We wanted whatever we offer to have some value to the customers. We assess those needs, and then our marketing team would say, do we need to raise it and just maintain it? But we are announcing the freight rates every January of every year,” Espinosa said.
DHL rising
Meanwhile, FedEx’s competitor, DHL Express, on Friday announced price adjustments that will take effect on 1 January 2025.
The average increase in the Philippines will be 5.9 percent from 4.9 percent in January 2024.
“We are committed to delivering stable and dependable services globally despite the ongoing impact of geopolitical dynamics and supply chain disruptions on the logistics landscape,” DHL Express Philippines country manager Nigel Lockett said.
“With the annual price adjustment, we can continue to invest in our network to enhance its resilience and adaptability, ensuring consistent support for our customer’s businesses regardless of external circumstances,” he added.
