Unpredictability, not cost, is Cebu’s real logistics problem

**CEBU CITY, Philippines** — While rising logistics costs and fuel prices remain a concern for businesses in Cebu, supply chain unpredictability and disruptions pose a significantly greater challenge, according to the Cebu Chamber of Commerce and Industry (CCCI).

“People often say the main issue is cost, but it’s not just cost. It’s really about predictability,” said CCCI President Regan Rex King during the 2GO Business Forum held at a hotel in Cebu City on August 6.

King noted that businesses are generally capable of absorbing higher expenses when costs are anticipated, but sudden disruptions can destabilize operations. “If goods are moved efficiently and predictably, businesses grow,” he said. “There are many unpredictables, but they can be managed.”

External shocks, such as the recent escalation between Iran and the United States, demonstrate how quickly global events can ripple through supply chains, drive up fuel prices, and generate uncertainty.

“Who would have known that while we were just going about our business, suddenly Iran and the US would be in conflict and we’d have a fuel crisis?” King said. “Everything changed overnight. Everybody panicked.”

He added that this incident exposed Cebu’s vulnerability stemming from its heavy reliance on imported raw materials. To mitigate the impact of such external shocks, King emphasized the need to strengthen regional and local supply chains.

“If we had addressed supply chains more seamlessly—for instance, if we weren’t overly dependent on imported raw materials, and instead looked at regional and local sources in neighboring cities and municipalities—then we wouldn’t have been as affected,” he explained.

To illustrate a model of predictability and efficiency, King pointed to Singapore, noting, “You know what time the train arrives, you know how much to pay, you know where to go.” He stated that Cebu could attain a similar level of efficiency through collaboration between the government and the private sector.

King also highlighted digitalization as a crucial area for improvement within Cebu’s logistics sector, advocating for online capabilities for transactions such as shipment bookings and securing bills of lading.

“It should be possible to do everything online without having to send somebody to the port to get a bill of lading,” he said, comparing the objective to the convenience of e-commerce platforms like Lazada, Shopee, and Temu.

“Why do people love to buy on Lazada, Shopee, Temu? Because you can just click—it’s fast and easy,” King said. “It looks easy to us because we only click, but in the back end, there is a lot of work and collaboration to make that happen.”

Furthermore, King asserted that government agencies and businesses must align their efforts—spanning local systems to international trade processes—if Cebu is to solidify its position as a logistics gateway for the Visayas.

“If we’re all aligned, from local to international, we will really attract more business and investments,” King said.

Article and image source: cebudailynews.inquirer.net