Domestic trade in the Philippines contracted sharply in the first quarter of 2026, with both shipment volume and trade value declining as weaker cargo movement by sea weighed heavily on overall interregional commerce.

Data from the Philippine Statistics Authority (PSA) showed total domestic trade volume fell 35.3 percent to 10.17 million tons from 15.72 million tons in the same period last year.

Road transport remained the country’s dominant mode for moving goods, accounting for 50.6 percent of total domestic trade volume, followed closely by water transport at 49.3 percent, while air cargo represented only a marginal share.

Cargo transported by road reached 5.15 million tons, down 20.1 percent year-on-year, while commodities moved by water plunged 45.9 percent to 5.02 million tons. Air cargo volume also declined 19.9 percent to 4.57 thousand tons.

Mineral products emerged as the largest commodity group traded domestically, accounting for 3.07 million tons or 30.2 percent of total trade volume during the quarter.

Prepared food products and vegetable products followed, contributing 24.6 percent and 23.6 percent, respectively.

Among regions, the Davao Region posted the highest outflow volume at 1.94 million tons, representing 19.1 percent of total domestic trade.

Central Luzon and CALABARZON followed with shares of 15.8 percent and 15.1 percent, respectively.

Meanwhile, the National Capital Region remained the country’s largest destination for traded goods, recording the highest inflow volume at 2.36 million tons.

SOCCSKSARGEN and Central Luzon were the next largest recipient regions for commodities.

Davao Region also recorded the most favorable domestic trade balance in terms of volume at 1.40 million tons, followed by Ilocos Region and Central Luzon.

On the value side, total domestic trade fell 19.8 percent to P820.81 billion from P1.02 trillion a year earlier.

Road transport accounted for the largest share of trade value at 64.1 percent, equivalent to P526.11 billion, slightly higher than last year’s level.

In contrast, the value of goods traded by water dropped 41.6 percent to P294.12 billion.

Machinery and electrical equipment registered the highest trade value among commodity groups at P200.96 billion, accounting for nearly a quarter of total domestic trade value.

CALABARZON emerged as the top source region in terms of trade value, with outbound commodities valued at P331.62 billion or 40.4 percent of the national total.

The NCR remained the largest destination market, posting an inflow value of P357.73 billion.

CALABARZON also posted the country’s largest favorable trade balance by value at P247.82 billion, followed by Central Visayas and Davao Region.