FAST Logistics optimistic on 2026 growth prospects

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December 15, 2025 | 12:00am

MANILA, Philippines — FAST Logistics Group is bullish that business opportunities in the country’s logistics industry next year will far offset persisting market pressures, with logistics providers pivoting toward more efficient operations.

It expects 2026 to become a “pivotal” year for Philippine logistics as companies are poised to innovate and become resilient amid mounting cost pressures and supply chain volatilities.

“2026 will not be a year for complacency. Costs will continue to rise, competition will intensify and disruptions will persist,” the company said.

It noted that logistics providers that will capitalize technology, streamline networks and create right partnerships would “withstand” market challenges toward growth trajectory.

“(It) will be a year where agility and foresight separate market leaders from followers. Our role as a logistics partner is to provide strategic solutions that enable businesses to scale efficiently despite uncertainty,” said Manuel Onrejas Jr., the company’s CEO for logistics.

The firm noted that the country’s economy is poised to recover next year with a 5.3 percent projected growth based on World Bank estimates, making the Philippines one of the fastest-growing economies in Asia.

The Philippine logistics market is expected to grow from $55.65 billion last year to over $100 billion by 2034, based on industry estimates. The growth is driven by domestic consumption, manufacturing and expansion of e-commerce nationwide.

Furthermore, the country is showing improving infrastructure, capability and supply chain competitiveness as seen in its performance in the World Bank’s 2023 Logistics Performance Index where it leapt 17 spots, landing at 43rd place, the company said.

“As FAST has observed, post-pandemic recovery unlocked stronger purchasing power across market segments, increasing demand for product availability, accessibility and affordability,” the company said.

FAST Logistics Group said the logistics network must be able to move goods faster and distribute more broadly not just in Metro Manila but all over the country next year. The coming year, the firm pointed out, will “favor” businesses that improve operations early and adopt innovative logistics strategies to keep their supply chains “resilient.”

“Companies expanding or entering the Philippines must view logistics as a growth enabler, not just a cost center. Those who integrate supply chain intelligence with distribution strategy will win in both speed and reach,” Onrejas said.

The logistics firm said fuel price fluctuations, toll increases, labor costs, infrastructure challenges and transport inefficiencies would continue to pressure logistics budgets nationwide.

“Companies must shift from merely absorbing costs to implementing flexible, scalable and efficient logistics models,” it said.

One of the innovations being done by local logistics providers is the use of artificial intelligence-powered tools such as warehouse management systems and transport management systems. These tools allow companies to provide enterprises with real-time visibility and coordinate across multiple hubs without heavy upfront investments, according to the company.

There is also a growing demand for on-demand last-mile delivery in the country driven by the growth of the country’s e-commerce market estimated to be around $17.65 billion, FAST Logistics Group said.

The firm said consumers increasingly expect fast, reliable, and convenient deliveries directly to their homes, forcing companies to rethink their distribution strategies.

“Last-mile delivery is where logistics meets the consumer. Strategic placement of inventory and optimized routes are the difference between growth and missed opportunities in last-mile delivery,” Onrejas said.