TRANSPORT DEPENDENT ECONOMY
The Philippine economy is highly dependent on the transportation scheme. With 4 years to go, there may be enough time to avoid a crisis of truck shortages.
The economy in the Philippines continues to grow as domestic consumption is rising, driven by an ever-increasing population. GDP amounts to 6.9 percent for the first six months of 2016, one of the best in the region, if not the world. There is more space for growth as a developing nation of over 100 million individuals.
With the increase of the economy, there is also the increase of the economy's blood vessels, the logistics and transport industry. As products are being manufactured and distributed, so is the need to transfer these products. The Philippines ' geographic design is a very complicated one: thousands of islands linked in one huge archipelago through hundreds of connections. In this supply chain phase, the trucking industry plays a very important role.
In 2017, at the height of the issue of port congestion, Truckers came to the center stage as the main trucking organizations (CTAP, INTHA, ACTOO, ABC) staged a shutdown of all transport facilities as a protest against the City of Manila's unfair daytime truck ban policy. The main ports were paralyzed and all understood the significance of trucks and the role they played in the domestic economy by the end of the 5-day strike. According to LTFRB Statistics, by 2019, there would have been more than 90,000 units phased out without a definite plan as to how the carriers would go about this change.
While no one is really paying attention to the trucking industry, there are latest developments and policy shifts that would quickly put the truckers back in the spotlight, the Land Transportation Franchising & Regulatory Board (LTFRB) published a circular memorandum (Board Resolution 006-2015) placing an age limit on vehicles, stripping them of their license to function or more frequently referred to as the' Certificate' The CPC enables a carrier to start and carry out operations linked to trucking. Without the said document, a heavy penalty is imposed on a carrier.
The primary foundation for justifying this strategy is two things:
- Road Safety
- Preservation of the environment
It is assumed that older trucks are unsafe and not roadworthy. In so many respects, this hypothesis is fallacious and is only a short-term, unsustainable solution. If maintained incorrectly, new trucks could cause more harm than older trucks that were properly maintained and maintained. Road-worthiness is the primary problem here.
We must bear in mind that the issue resides primarily in the failure of the government to audit truck safety and road safety. There are currently only 2 DOT operating facilities capable of inspecting and checking trucks: LTO Main Office (Quezon City) and LTO Pasay. Both installations are unable to accommodate the sheer amount of Jeeps, Busses and Trucks that would be subject to their inspection service for motor vehicles. Often they can get away at the cost of road safety by paying a certain fee for the comfort of not being checked.
The failure of the government to audit trucks will simply be swept under the rug and instead they have chosen to apply a much harder strategy of simply forcing operators to re-fleetby purchasing fresh trucks and disposing older trucks without a definite plan on how to do it. By 2019, most operators will not be able to re-fleet all their ancient trucks and serious shortages may emerge by the deadline.
30 Surprising Facts About Trucking Business Industry in The Philippines
1. There are 7,000 islands in the Philippines off Southeast Asia, with Luzon and Mindanao being the two largest islands. The terrain involves volcanic mountain masses, a few plains and narrow coastal strips. There is a tropical climate in the Philippines. It is susceptible to natural disasters such as typhoons, floods, landslides, volcanic eruptions, earthquakes and tsunamis. Overall, there is a dense population in the Philippines, with no large distant regions. The road network's quality differs extensively.
2. 60 percent of highways are village roads that are unpaved. Most of the highways in the country are paved. Congestion in traffic is prevalent (particularly in Manila) and is one of the worst in the world. A few miles can take hours to go.
3. Traffic rules are rarely enforced. Driving conditions can be difficult. Roads carry automobiles, trucks, buses, tricycles, handcarts and pedestrians. Many roads have large potholes and need repair. Roads under repair are often not clearly marked and may be hazardous. Driving at night can be dangerous; some vehicles travel without lights and most rural roads are unlit. Low altitude roads frequently flood even after light rain, covering holes. During the rainy season, roads at higher elevation sometimes experience landslides.
4. While Filipino is the official language, English is commonly understood and is the medium of business communication.
5. As a catalyst for economic development, the Philippine economy is strongly dependent on the transport scheme. Road transport plays an significant role alongside rail and inland water transport. Companies with 20 or more units are regarded by Philippine norms to be "big."
6. Many freight forwarders have moved to smaller trucks, partly because of a Manila-based ban on heavy trucks.
7. Trucks can be categorized as three primary kinds in the Philippines: trailer trucks (58%), ten-wheeler trucks (37%) and dump trucks (5%). The market is dominated by Toyota (42%), followed by Mitsubishi (22%). Many trucks are 30 years old or even older in the nation. It's normal to drive for up to 14 hours a day (8 am to 10 pm), six days a week.
8. For loading and unloading, drivers can be followed by three assistants.
9. All staff become Social Security System (SSS) members. Benefits include pensions for disability, pensions for retirement, funeral benefits, sickness benefits, maternity and paternity leave, and various loans.
10. Annual payment of a 13-month wage is compulsory, and in preparing for Christmas individuals look forward to getting this.
11. The average driver age is 36 with a truck driving experience of about 10 years. Most drivers are masculine, high school graduates, married, and take about six weekly journeys. With only about 5 hours of sleep, many drivers are deprived of sleep.
12. Driving at night and using prohibited paths to speed up activities are regarded as the most prevalent causes of accidents.
13. BLOWAGA–A term used to train on what to do before riding: battery and brakes, lights and leaks, oil, water, wheels and warm-up, air, gauges, accessories and looks.
14. Coding–Metro-Manila's scheme to restrict congestion, with day-to-week limitations on driving based on license plate.
15. The Department of Transportation and Communications (DOTC), Metropolitan Manila Development Authority (MMDA) Confederation of the Philippines Truckers Association (CTAP) issues driver's permits to the Land Transportation Office (LTO) — Government organisation for Truckers
16. Metro Manila's truck ban regulations prohibit freight cars during peak hours from main highways. This has reduced the truck window and reduced the earning ability of truck drivers.
17. It is a severe issue to drink and drive. Recently, the law has been modified to set a legal cap on blood alcohol. Enforcement, however, is incoherent.
18. A written examination and practical test as well as a medical certificate and adverse drug test outcome are required for professional licenses.
19. A licence can be confiscated by an MMDA Traffic Enforcer in some situations. Categories of licences include:
- Code 2: Vehicle up to 4500 kg GVW, or Code 4: (Automatic).
- Code 3: Vehicle above 4500 kg GVW, or Code 5 (Automatic).
- Code 6: Articulated vehicle 1600 kg GVW and below.
- Code 7: Articulated vehicle 1601 kg up to 4500 kg GVW.
- Code 8: Articulated vehicle 4501 kg and above GVW.
20. Drivers are often needed to attend seminars at the Traffic Academy (MMDA) to clear a suspended license.
21. The Technical Education and Skills Development Authority (TESDA) provides a brief driving NC III training course in Codes 3 to 5 restriction straight trucks. TESDA also offers a 140-hour fundamental driving and safety training program for heavy-duty vehicle drivers, buses and trailer trucks. This certification has become a necessity for Filipinos to work as drivers to go abroad.
22. Private oil companies (such as Total, SeaOil, and Shell) involve and provide their employed drivers with continuing driver training and safety programs. Common driving behaviors include stopping rolling, not wearing a seat belt, swerving, and horn honking. As part of their security policies, some businesses guarantee trip scheduling.
23. Shell Philippines enables only 10 hours of driving per day and 12 hours of job per day for drivers. There are pre-determined authorized paths.
24. Total Philippines, another oil and gas firm, has a safety mechanism including a "secure to load" checklist every time a truck enters its warehouses where tires, seat belts, engine, discharge valves, safety equipment and electrical cables are checked.
25. Protestants, Muslims and Buddhists are predominantly Roman Catholics. Strict Holy Week observance (Monday to Easter Sunday). All Saints Day (Nov 1), Christmas and New Year are also observed by Catholics.
26. Filipinos see their job as a reflection of themselves, thus providing the greatest possible customer service.
27. It is essential for the Filipinos to build confidence. It may be difficult for Filipinos to handle criticism. They may withdraw if offended.
28. They're fast smiling-which can mean being pleased, or uncomfortable, or not willing to answer a question, or not understanding what's going on. Generally speaking, Filipinos don't say "no" (check that "yes" means "yes"). Working overtime is prevalent in order to satisfy deadlines.
29. Generally speaking, Filipino drivers prefer to receive particular directions and may not be happy to give their view unless the supervisor is specifically open to suggestions.
30. BC has over 135,000 individuals in a big Filipino society, mainly focused in the Lower Mainland.