FARMERS and other agriculture stakeholders must adopt backhaul logistics to reduce fuel consumption as the country deals with a national energy emergency, the head of an end-to-end logistics and supply chain network said on Thursday.
Backhaul logistics is the practice of utilizing a transportation vehicle’s return trip after delivering its initial cargo (the “headhaul”) to pick up a new load for the journey back to its origin or another destination. This reduces empty miles, lowers fuel expense and increases profitability.
“In the face of rising fuel prices and food insecurity, strengthening backhaul logistics is an immediate and practical solution. Every empty return trip is a missed opportunity to move essential goods and ease cost pressures on consumers,” said Manuel Onrejas Jr., CEO of Fast Logistics, which operates the largest warehouse footprint and fleet in the country, with over 13,000 employees covering 94 percent of provinces.
Around 70 percent of trucks on Philippine roads return empty after completing deliveries, an inefficiency in the supply chain, Onrejas said. “If addressed, it could significantly improve the transport of essential goods such as fruits and vegetables while lowering transport costs.”
Fast has partnered with the Department of Trade and Industry (DTI)-Supply Chain and Logistics Group, DTI Nueva Vizcaya, the local government unit of Aritao (Nueva Vizcaya), and agri-tech firms Agro-DigitalPH and Mayani to benefit farmers and buyers of their produce.
“The initiative aims to improve farm-to-market efficiency by directly linking farmers with buyers and optimizing delivery trucks’ return trips,” Fast Logistics said.
The plan is to build an e-commerce logistics center in Aritao to help farmers meet big business requirements and reduce reliance on intermediaries.
Fast has committed to apply backhaul logistics to transport farmers’ produce more efficiently from Nueva Vizcaya to Manila.
“Nueva Vizcaya produces around 120,000 metric tons of vegetables annually, much of which is transported to Metro Manila and nearby regions. Its mix of upland and lowland terrain allows for year-round production, making it a key contributor to Luzon’s food supply,” Fast said.
Aritao was chosen for its strategic location that links Cagayan Valley to Metro Manila.
The provincial government of Nueva Vizcaya has pledged support for the initiative, including farmer capacity-building programs to help producers meet institutional demand.
“The energy crisis underscores the need for stronger collaboration between government and the private sector. Through closer coordination, we can build a more efficient and resilient supply chain that safeguards the interests of both farmers and consumers,” Onrejas said.
