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Air cargo and logistics industry leaders want comprehensive digitalization, customs policy changes, and an airport master plan to address challenges and help improve the air cargo industry
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PAL vice president for cargo business Jason Siy said “the ask” is digitalization of the industry’s processes, including customs processes, to achieve seamless transactions, and therefore more business
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International Air Transport Association Philippines country manager Samuel David is also pushing for digitalization, particularly on the use of electronic airway bill over paper or manual AWB
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Philippine Multimodal Transport and Logistics Association, Inc. president Erich Lingad’s wish is for the Bureau of Customs penalties for late submission of manifest to be permanently lowered, and for BOC to provide guidelines on transshipment of cargo between Clark and Manila airports
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David said it is also high time for a major comprehensive airports master plan for the country, as earlier suggested by PAL
Air cargo and logistics industry leaders are calling for digitalization, customs policy changes, and a master plan to address challenges and help improve the air cargo industry.
During a panel discussion at the recent 2025 Philippine Air Cargo Day conference and exhibit, Philippine Airlines (PAL) vice president for cargo business Jason Siy said “the ask” is digitalization of the industry’s processes, from booking to releasing, including customs processes, as it provides seamless transactions, and therefore more business.
Similarly, International Air Transport Association (IATA) Philippines country manager Samuel David is also pushing for digitalization, particularly on the use of electronic airway bill (e-AWB) over paper or manual AWB.
“Most of the countries in Asia Pacific have moved over to recognizing the electronic air way bill, and we invite the Bureau of Customs (BOC) to recognize the electronic air way bill together with all of the other countries in Asia Pacific,” David said.
IATA for years has been pushing for the adoption of e-AWB in the Philippines and has worked with the BOC-Ninoy Aquino International Airport, which handles the biggest volume of air cargo shipments, and the private sector for the initiative.
David noted that agents, freight forwarders, and airlines are ready for the adoption of e-AWB.
READ: BOC-NAIA official to push for e-AWB adoption
Since the Philippines ratified 2015 the Montreal Convention of 1999, or the Convention for the Unification of Certain Rules for International Carriage by Air, it has established the legal framework to adopt the use of electronic documentation for shipments to reduce costs and increase efficiency.
IATA introduced e-AWB in 2010 to initiate the digitalization of the air cargo supply chain. Ever since, the e-AWB initiative has been a key enabler to the digitalization and transformation of our industry, as data availability and quality is critical to deliver innovative solutions and enhancing customer experience. On January 1, 2019, e-AWB became the default contract of carriage for all air cargo shipments on enabled trade lanes.
Currently, airlines and forwarders in the Philippines are doing duplicate work, submitting paper master AWB and e-AWB to fulfill local and global regulatory requirements.
READ: PH air cargo industry needs a unified digital system
BOC Assessment and Operations Coordinating Group deputy commissioner Agaton Teodoro Uvero, in response, said “if it is only a matter of issuing a memorandum, then… we should be able to immediately [do] a pilot, and if it’s okay, then make it more mandatory for the whole of the major airports.”
Making the air cargo industry “very digitalized” is also seen as a step towards making it “a little more attractive” to younger professionals who are more tech savvy and help address the industry’s current challenge in human capital.
“They’re very… digital savvy. If we can make our industry very digitalized to the extent that it will be sufficient enough for them to actually want to join this industry, maybe they’ll come,” David said.
Airline Operators Council chairman Allan Nepomuceno said the aviation industry is currently challenged in terms of human capital, with personnel leaving after getting a bit of experience to get a higher paying job or a different career abroad.
For their part, Erich Lingad, president of the Philippine Multimodal Transport and Logistics Association, Inc. (PMTLAI), and Joseph Mardigal, president and chief executive officer Paircargo, said they have been partnering with schools to introduce careers in aviation, air cargo and logistics, as a career option.
Lingad, meanwhile, said one of their biggest challenges – which was BOC’s hefty penalties for late submission of manifest – has already been addressed.
Last October, BOC ordered the temporary suspension of the imposition of penalties on freight forwarders and deconsolidators for the late submission of electronic consolidated cargo manifests. The suspension will be implemented until BOC’s system, called the Electronic-to-Mobile (E2M) System, is able to handle the volume of submissions without error or slowdown, store data in advance and merge them with carrier’s data.
Freight forwarders normally have to wait for the carrier (airline or shipping line) to submit the master bill of lading/master airway bill to the E2M System before they could submit their AWB/B/L. This situation has led to instances of late manifest submission.
Forwarders have long complained they bear the brunt of the penalties despite not having control over when carriers submit their MAWB/BL.
Lingad, however, said they still wish for a way to permanently lower penalties, noting that policies may change with the changes in leadership. Currently, penalties range from P100,000 to P300,00 per bill of lading.
Moreover, Lingad said they hope BOC can assist the industry by coming up with guidelines on transshipment of cargoes between NAIA and Clark International Airport.
“We all know that Manila is already, in terms of capacity, it’s full. There are more flights now coming out of Clark. Maybe… Customs can assist in coming out with guidelines on how to transship cargo between the two airports,” Lingad said.
READ: Clark International Airport reports 100% jump in cargo shipments for Jan-May
Uvero, in response, said, “We’re actually working on it already… We had discussions already and uh, we just have to just push for it more aggressively.”
Currently, one foreign airline has been provided with procedures for the transshipment and transit of their overflow cargo from Clark to Manila, based on Customs Memorandum Order (CMO) No. 15-2022 (Rules and Regulations Implementing Customs Administrative Order No. 12-2019 on the Transshipment of Goods).
Relatedly, David said it is also high time for a major comprehensive airports master plan for the country, as earlier suggested by PAL.
PAL executive vice president and chief operating officer Carlos Luis Fernandez earlier said the Philippines must have a single master plan for all airports to remain competitive and take advantage of the aviation boom in the Asian region. – Roumina Pablo
