Commodity flow or domestic trade refers to the flow of commodities through the water, air and rail transport systems in the country. Data on the inflow and outflow of commodities in the different regions of the country are used to construct interregional and inter-industry relation tables. These serve as bases in the formulation and implementation of various regional development programs like countryside development and port planning.
Quantity of domestic trade declines, value increases
In the third quarter of 2005, the total quantity of domestic trade transactions decreased by 26.4 percent, resulting to 4.05 million tons from 5.50 million tons reported during the same period of last year. Shipment through water was the major mode of transport with shares of 99.8 percent and 99.7 percent in the third quarters of 2004 and 2005, respectively.
On the other hand, there was an increase in the total value of domestic trade by 21.7 percent from Php76.96 billion in the third quarter of 2004 to Php93.65 billion in the same period of 2005. The commodities were traded mostly through water comprising 99.3 percent and 99.6 percent in the third quarters of 2004 and 2005, respectively.
Food and live animals contributes almost thirty percent of total domestic trade value
The bulk of the value of commodities transacted throughout the country in the third quarter of 2005 came from food and live animals with value amounting to Php27.68 billion (29.6%). This was followed by mineral fuels, lubricants and related materials with Php19.17 billion (20.5%). Machinery and transport equipment was next with Php14.22 billion (15.2%). The least share was contributed by animal and vegetable oils, fats and waxes with value amounting only to Php471.75 million (See Table 1).
Similarly, in the third quarter of 2004, food and live animals dominated the domestic trade with a share of 28.6 percent (Php22.03 billion) of the total value. Mineral fuels, lubricants and related materials was next with a 21.5 percent share (Php16.57 billion). This was followed by machinery and transport equipment with 17.2 percent share (Php13.25 billion). Animal and vegetable oils, fats and waxes likewise shared the least value of Php864.29 million among the commodity sections (See Table 1).
National Capital Region (NCR) leads in value of domestic trade
In the third quarter of 2005, NCR accounted for 20.4 percent (Php19.09 billion) of the total value of domestic trade, the largest share among the regions. This was followed by Central Luzon with transactions amounting to Php15.17 billion (16.2%). CALABARZON was third, contributing Php12.70 billion (13.6%). Western Visayas was next with Php9.25 billion (9.9%). Cagayan Valley remained to be the least contributing region with share of only Php246 thousand.
In contrast, during the third quarter of 2004, Central Luzon reported the highest domestic trade share at Php16.20 billion (21.1%). NCR was next with a total value of Php15.57 billion (20.2%). Northern Mindanao came up third with Php9.70 billion (12.6%). Eastern Visayas followed with Php7.90 billion (10.3%). Cagayan Valley contributed the least share among the regions with only Php25 thousand.
Central Luzon posts the highest favorable trade balance
Central Luzon recorded the most favorable balance of trade at Php14.78 billion. Four other regions registered more than a billion positive trade balances namely: CALABARZON (Php7.83 billion), Eastern Visayas (Php4.09 billion), Western Visayas (Php2.66 billion), and SOCCSKSARGEN (Php2.60 billion). However, Central Visayas registered the largest unfavorable balance of trade of negative Php11.63 billion. Other regions with more than a billion negative trade balances were MIMAROPA (-Php6.62 billion), NCR (-Php6.33 billion), Caraga (-Php4.21 billion), and Zamboanga Peninsula (-Php1.52 billion).
Likewise, in the third quarter of 2004, Central Luzon realized the most favorable trade balance at Php15.71 billion. Other regions which surpassed the billion positive trade balance were Northern Mindanao, Eastern Visayas, SOCCSKSARGEN, and MIMAROPA, amounting to Php4.83 billion, Php3.66 billion, Php2.68 billion and Php1.74 billion, respectively. Central Visayas also recorded the most unfavorable balance of trade at negative P11.86 billion.
Notes:
- 1. DOMSTAT reports from the following provinces/cities were not yet received as of December 17, 2005, and were not included in this special release:
- a. Albay - Air (August 2005) and Rail (August 2005)
- b. Cebu - Coastwise (July to September, 2005)
- c. Misamis Oriental - Coastwise (August to September, 2005) and Air (September 2005)
- There was no Rail Transaction in the April 2005 due to the railroad accident in November 2004, which resulted to the stoppage of the operation of the Philippine National Railways (PNR).
Source: National Statistics Office
Manila, Philippines
