Pinoys and Balikbayan Box
Manny Paez

There are a lot of things going on in the shipping and travel industry that affects every Filipinos in America. The upcoming balikbayan box shipping rate increase and the airline weight restriction of check-in baggage to 50 lbs.

There will be a price increase in balikbayan box shipping in a few months and some airlines now imposes a 50 lbs weight limit for check in baggage for trips to Philippines.

I remember when I started balikbayan box business in 1994 in Washington, DC, our charges for a standard balikbayan box to Metro-Manila was $95. Gasoline was only less than a dollar per gallon.

When I relocated to Los Angeles, CA in 1998 to position Manila Forwarder in the hub of Philippine shipping, gasoline here was in the dollar fifty per gallon.

The prevailing prices then were $65 for a standard balikbayan box to Metro-Manila. The lowest rate then was the one that offers $45 per box but you have to buy your box and drop it off at their agents.

A few years prior to 1998, I was told that the prices of sending balikbayan boxes to Metro-Manila was into the average of $75 and there were only about five balikbayan box companies then. Most have closed shop because of the cut-throat pricing competition.

The balikbayan box price war has resulted into a lot of casualties, from company owners to disgruntled consumers.

More balikbayan box companies are expected to fold shop with the turn of events due to higher cost of operations vis a vis their ridiculous pricing.

I know that there is better way of doing business than joining the fray, I thought of ways to provide value for every dollar spent by my clients so I made Manila Forwarder boxes bigger, thus the birth of the JUMBO BOX.

Manila Forwarder also spends more money in customer support and logistical operations.

Jumbo Box is one third bigger than the average balikbayan boxes. Its box is also of thicker and better quality than any balikbayan box available in the market at that time. I positioned Manila Forwarder as the quality. lternative for a better price.

Manila Forwarder’s introductory price in 1998 was $79 to any point in the Philippines. A good deal for clients who sends their boxes to Visayas and Mindanao. Making these as our market niche, Manila Forwarder ever added special values like putting security seal in each boxes and wrapping them with industrial strength plastic for further protection.

A couple of months after that, We had the feel of the market and adjusted our pricing in to $75 per jumbo box to Metro-Manila and adding $5 for Central Luzon, and so on. Mindanao shipments cost $95 giving clients an average of $35 for every Jumbo Box they ship.

Rate of course is one of the major factors in choosing a balikbayan box company; however, Manila Forwarder recognizes that the rate should be supplemented with a competent customer support, efficient delivery system and no pilferage service.

Manila Forwarder’s decent pricing allows the company to continually improve its services, recruit quality staff, respond to client’s feedback and complaints, invest in new technology and equipments, and help in various community projects.

When the US-Asia trade imbalance occurred a few years ago when it has come to a point that shipping lines were shipping empty containers back to Asia, shipping lines lowered their rates to US based Freight Forwarders to generate shipments.

Manila Forwarder passed this savings to our clients by offering Suki Card where they get $5 off in every shipment and free shipping on their 15th box.

However, the present gaining strength of Asian currency towards US Dollar generated a lot of export from the USA that the demand for Asia-bound containers from USA has dramatically increased that US Freight Forwarders are even scrambling just to get a booking.

Another major factor is the fuel expenses that continually increase, especially during summer wherein American people spend more time on the road.

In airline and shipping industry, they call the rate increase here as fuel surcharge to avoid filling for their new tariff rates increase.

There is a $900 rate increase per ocean container effective May 1, 2008 and an additional $300 increase this coming June.

The Peso strength against US Dollars also increased the cost of distribution in the Philippines.

Expect an increase in balikbayan box shipping in a month or so. It’s inevitable. If traveling to the Philippines, ship your balikbayan box early. Some companies like Manila Forwarder also have a travel company, TravelPH.Com that offers discount in shipping when you purchase your airline ticket from them.

About the Author:

Manny Paez is a retired US military and former member of Philippine Police Force. A graduate of BS Marketing from San Beda College and Graduate Studies in Criminal Justice from Cal State Long Beach. He started Manila Forwarder in California in 1998.