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The Top Shipping Companies in the Philippines

2021-06-08 14:51:06
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Choosing the right shipping companies can make or break your online business in the Philippines and it doesn’t help that the Philippines is an archipelago with over 7,640 islands. Shipping Items can be challenging for online businesses especially those who are selling fragile items. 

The Importance of Logistics for Your Online Business in the Philippines

Logistics plays a very important role for online businesses as it is one of the major factors that can heavily affect customer satisfaction. Most online businesses and e-commerce stores outsource their logistics from warehousing to delivery to help minimize cost through third-party logistics (3PL) providers. Choosing the right logistics partner can be challenging in the Philippines especially with the myriads of different rates, coverage, and handling policies that each shipping company has. 

Choosing the Right Logistics Partner

There are several things to factor in before you decide which third-party logistic partner you will choose for your business. 

1. Identify Your Target Market

Big-name logistics partners with nationwide coverage can have higher rates compared to couriers that operate within the city so before you go out and start looking for shipping partners you need to identify who your customers will be and where. If you’re operating only in one city or select regions then it’s a good idea to hire couriers but if you are planning to ship across the regions of the Philippines then you should consider 3PL providers that have nationwide coverage.

2. Coverage Area 

Once you have determined who your customers are and where they live, the next step is to choose a shipping company that covers the areas of customers you plan to serve with your online store. Big-name logistics providers like LBC have a wide network of physical drop-off and pick-up centers that allows businesses to ship their items directly to an LBC store in a mall making it more convenient for customers who are not always at home. 

One of the trade-offs of big shipping companies between in-city couriers is speed. A package can take a day or more to arrive at its destination within a city through a big-shipping company compared to a courier who can deliver it within the hour in the city so always choose the right partner for the right coverage area to minimize cost and decrease delivery time.

3. Wide Network of Warehouses

Another important factor to consider, especially if you are shipping your product outside Manila is the network of warehouses a shipping partner has. Warehouses reduce the risk of damage and mishandled shipment because they compartmentalize the shipping process.

4. Tracking and Monitoring

Choosing logistics partners with up-to-date and state-of-the-art tracking systems helps improve customer experience by providing them real-time updates of the status of their order. This also reduces the load off your customer satisfaction team because customers no longer need to call your store for updates unless there is a major delay in the package.

Best Shipping Companies in the Philippines

Here is the list of the top shipping companies that are frequently used by online businesses in the Philippines.

Nationwide Coverage

1. LBC Express

LBC Express is one of the biggest and popular shipping companies in the Philippines, thanks to their wide reach and more than 1400 branches nationwide. They provide a whole range of services from express delivery, shipping and courier services.

LBC allows online businesses to ship products easily thanks to their preset box-sized options making it easier for online businesses to plan and manage their shipping costs. They also provide door-to-door delivery or branch pick-up providing more options to your customers.

They also provide a wide range of shipping options from land freight, sea freight, and air freight and recently launched a service that is centered for small online businesses like their integrated eCommerce payment options where sellers can provide  Cash on Delivery (COD), Cash on Pick Up, Pay to Collect and Cross Border services. LBC Express also has dedicated applications for both Android and Apple smartphones making it easier for customers and online business in the Philippines to track and transact businesses while on the go.

Sample Shipping Rate for Cargo KB Mini (9x5x3in) box

Manila to Cebu 1kg is estimated at 230 pesos

2. JRS Express

JRS Express is one of the oldest shipping companies in the Philippines. JRS Express was founded in 1960 and is a homegrown brand. Although not as technologically integrated as newer competitors, it offers one of the lowers shipping rates per kilogram among all the nationwide competitors. 

Although it has nationwide coverage, JRS Express only has 400 branches and provides non-real-time functionality on their website. Despite its technological shortcomings, JRS is the perfect option if you need to move inventory in bulk or deliver orders to clients who do not require next-day shipping thanks to their cheaper rates.

JRS Express Next Day Three Pounder (1.5kg) box

Manila to Cebu 1.5kg is estimated at 293 pesos

3. J & T Express

J & T Express is a totally different company than JRS express and was first established in 2018. J & T Express originally started in Indonesia and expanded its network to neighboring southeast Asian countries. 

Despite being a new player in the logistics business in the Philippines, J & T Express already has more than 600 branches nationwide. Although not as developed as the first competitor, J & T express also provides a VIP platform system that is designed to make logistics easier for small and online business in the Philippines. 

J & T Express provides the latest tracking and monitoring features that are on par with the top competitor. They also provide next-day shipping across the Philippines at extremely affordable rates. 

J &T Express standard rate for 1kg box

Manila to Cebu 1kg is estimated at 180 pesos

4. 2GO Express

2GO Express is a relatively new player in the customer-facing logistic business, they are a spin-off business of 2GO shipping which primarily focuses on operating passenger and cargo ferries and B2B logistics across the Philippines.

They offer a wide range of logistics and 3PL services that are designed for small online businesses but not as streamlined as LBC or J & T Express. They are the perfect choice when it comes to moving stocks in big volumes like Full-Container Load (FCL) and 2GO Small Cargo (LCL) load. 

For more accurate pricing, we recommend that you check directly with their online rate calculator

Inter-City Logistics

1. Lalamove

Lalamove is perfect for small online businesses that only cater to smaller areas like within major cities in Metro Manila, Cebu, or Davao. They offer fast on-demand courier delivery services at extremely affordable rates. 

The company’s services are centered around smartphones making it easier for both businesses and customers to send, track and receive packages in actual real-time. They offer a wide range of delivery options from motorcycle delivery, small car, MPV to a full-sized van.

We recommend that you download their app available for both Android and Apple to review rates in real-time. 

2. GrabExpress

GrabExpress is a spin-off business of the popular food-delivery app Grabfood and ride-hailing app Grab. They allow quick on-demand parcel and courier delivery services in select cities like Metro Manila and Cebu City. 

An online business can conveniently use apps that are available for both Apple and Android smartphones to quickly book deliveries to their client and have their product delivered within the hour. 

Final Thoughts

Choosing the right Shipping company or third-party logistics (3PL) can have a huge impact on your online business in the Philippines especially customer satisfaction that is why it is important to choose the right one in terms of what your business currently needs. Shipping companies like LBC, JRS Express, J & T Express, and 2GO Express are perfect for online businesses selling products like furniture, appliances, and other big items, they are also great for shipping smaller items like gadgets, smartphones, and other items thanks to their many preset sizes and weight boxes available.

For inter-city logistics like Lalamove and Grab Express, they are perfect for online sellers who are selling highly perishable items like baked goods and specialty foods. They are also a quick way for businesses to deliver products directly to customers albeit at a more expensive rate per kilogram compared to traditional shipping companies.

We wish you good luck!
SwiftPay Team

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