Rising freight and packaging expenses alongside disrupted shipping routes are complicating Philippine exports and consumer prices, industry leaders said Thursday.
Association of International Shipping Lines president Patrick Ronas said a combination of war-related surcharges and limited vessel access is making shipments to the Middle East increasingly difficult and expensive.
“The exports to the Middle East are our problem. If you look at the routes and the cost, there are options, but they are all more expensive,” Ronas said on the sidelines of a United Port Users Confederation meeting.
Shipping lines have begun imposing “war risk” and emergency surcharges after the withdrawal of insurance coverage for vessels transiting conflict-affected areas. The shift has pushed up overall freight costs and forced cargo bound for the Middle East to be diverted to alternative ports, the group said.
Exporters are now relying on longer, more complex routes. Ronas said that while ships are usually the cheapest option, many must now use trucking. Trucking rates alone have increased by around 30 percent.
Agricultural exports, particularly bananas, are among the most vulnerable due to their dependence on timely delivery and competitive pricing. Ronas warned that Philippine goods risk becoming less competitive in key Middle Eastern markets, noting that “everybody will take a hit even if the war is happening somewhere else.”
Rising global oil prices and supply chain disruptions are also expected to push up packaging costs. Packaging Institute of the Philippines (PIP) representatives said the industry remains highly exposed to geopolitical tensions that drive up crude oil prices, which determine the cost of petrochemical-based materials.
The global packaging market is valued at about $1.11 trillion in 2026, while the Philippine packaging industry is estimated at around $78 billion. Both are at risk as raw material prices climb.
In the Philippines, the heavy reliance on “tingi” consumption—single-use sachets for products like instant coffee and toothpaste—makes the market sensitive to price hikes. A 2020 report estimated that Filipinos use about 164 million sachets daily.
PIP said essential consumer goods could be affected, including coffee, cooking oil, chocolate and canned products. Even fresh items such as seafood and vegetables may see price adjustments due to rising logistics and refrigeration costs.
To mitigate these risks, PIP is promoting sustainable packaging by optimizing designs to reduce material use and exploring fiber-based or biodegradable options. As a member of the Asian Packaging Federation, the institute said Asia remains highly exposed to global oil price shocks.