FAST Logistics Group is urging fast-moving consumer goods (FMCG) companies and retailers to adopt co-loading delivery models as fuel prices continue to rise, warning that inefficiencies in current logistics systems could drive up the cost of goods for Filipino consumers.

The call comes after a consultation held on Tuesday, March 17, by the Department of Trade and Industry (DTI) and the Supply Chain Management Association of the Philippines (SCMAP) with leading FMCG firms and retailers to address the impact of rising fuel costs on supply chains.

During the meeting, the Philippines' largest third-party logistics provider (3PL) said traditional direct-to-store delivery setups — where suppliers use dedicated trucks for each shipment — are becoming increasingly unsustainable amid higher oil prices driven by global conflicts.

FAST presented its co-loading solution, Flow by FAST, as a practical strategy to help reduce transport costs and ease pressure on consumer prices.

“Every direct-to-store delivery should create value, not waste,” said FAST Logistics CEO for Logistics Manuel L. Onrejas Jr. “With Flow by FAST, we eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods to retail stores more efficiently, lower logistics costs, and keep shelves stocked despite rising fuel prices.”

Data from FAST shows that around 56% of trucks delivering FMCG products to retail distribution units operate at only 32% to 40% capacity, contributing to congestion at retail receiving bays in supermarkets, groceries, and shopping centers.

The company also noted that many FMCG firms rely on smaller vehicles such as AUVs, which can cost up to 61% more than using larger six-wheeler trucks, further increasing logistics expenses.

These inefficiencies, FAST said, ultimately increase logistics costs that may be passed on to consumers.

To address this, FAST has long been pushing for co-loading, a model where multiple companies share space in a single delivery truck and pay only for the portion they use, improving vehicle utilization and reducing trips.

With Flow by FAST, the logistics firm currently consolidates shipments at strategically located hubs across Luzon, Visayas, and Mindanao. From these cross-docking facilities, goods are sorted and delivered to retail outlets based on scheduled receiving windows.

The company said this system reduces empty miles and fuel consumption, improves turnaround times at receiving bays, and enables the use of larger trucks for more efficient single-drop deliveries.

However, FAST emphasized that the success of co-loading depends on strong collaboration between FMCG companies and retailers. Retailers play a key role in aligning delivery schedules, improving bay management, and supporting coordinated logistics operations.

Beyond cost savings, FAST said wider adoption of co-loading could also help reduce traffic congestion and carbon emissions while improving the availability and affordability of goods, particularly in Visayas and Mindanao where transport costs are higher.

With its nationwide network, digital capabilities, and existing infrastructure, FAST said it is ready to implement co-loading at scale.

“We are offering this solution as a plug-and-play solution using our existing facilities that already serve modern trade. We already have the digital and physical infrastructure in place, and we are ready to begin as soon as our partners are,” Onrejas said.