Tough Year Ahead for Logistics as World Deals with Trump 2.0

The Philippine logistics industry is sailing into challenging waters this year as it has to deal with another wave of global uncertainty with the return of known protectionist Donald Trump as US president.

- By ELIJAH FELICE ROSALES

But for state-run regulator Philippine Ports Authority (PPA), the country can withstand the logistics impact of new tariffs that Trump may impose in his new term.

PPA general manager Jay Santiago said the industry is riding high from its performance last year, when the agency raised a record P27.3-billion revenue on the growth of shipping activities.

The PPA pulled off its historic revenue partly because of the 17 percent spike in wharfage dues, reflecting the increase in exports and imports. In addition, the agency handed over a number of ports to the private sector, signaling business confidence in logistics.

As such, Santiago believes the industry can overcome this new wave of trade uncertainty coming from the US.

On his first day in office, Trump announced plans to impose new tariffs in February, beginning with a 10 percent strike on Chinese and Mexican goods.

"I don't think there will be any material impact on our trading position on account of the change in the US government, and besides, our export volume to the US is negligible," Santiago told The STAR.