Port users expect as much as 10 percent decline in revenues this year on slowing trade volume due to weakening global economy.
Nelson Mendoza, executive vice-president of United Portusers Confederation of the Philippines, told the media at the press conference for the Metro Manila Business Conference on August 7-8 at SEDA Vertis North in Quezon City that despite the threat of the Trump tariffs, the global economy is really slowing down.
“Normal bookings are really slowing down,” he said. Port users, including truckers, shippers, and shipping lines, are adjusting their projections for the second half.
“Everybody is adjusting,” Mendoza said noting that if an exporter who used to export 10 container vans reduces his volume, it will affect all others in the supply chain.
This is compounded by the slowdown in domestic manufacturing for the exports market, resulting in lower exports volume although import volume is going up.
“Some manufacturers are just operating for the domestic market, unlike before when we had furniture,” he said.
The country’s exports are largely electronics products. But, the agriculture sector is also contributing more particularly the country’s indigenous exports, such as bananas, pineapple and mangoes, and other food products, are growing.
“Tuna export is also up,” he added.
But Mendoza downplayed the US tariff threat, calling it a temporary hiccup. He said that exporters seemed to hold some of their operations in March this year because of the Trump tariffs, but trade has somehow stabilized following the suspension of its implementation and negotiations happening on a bilateral basis.
