THE volume of goods traded in the country plunged 37.9 percent during the second quarter of 2026, dragged by a sharp contraction in commodities transported by water, according to the Philippine Statistics Authority (PSA).
Preliminary PSA data showed total domestic trade volume fell to 10.57 million tons in the April-to-June period from the 17.02 million tons recorded during the same quarter last year.
The decline was largely driven by water transport, where the volume of commodities shipped fell 56.7 percent to 3.77 million tons from 8.72 million tons a year earlier.
Road transport also recorded a decline, although at a slower pace, with volume falling 18.1 percent to 6.79 million tons from 8.29 million tons.
Air transport was the only mode to post an increase, with volume rising 18.3 percent to 6.91 thousand tons from 5.84 thousand tons.
The contraction in the physical volume of goods was accompanied by a smaller decline in the value of domestic trade.
PSA said domestic trade value fell 21.9 percent to P745.70 billion in the second quarter from P955.18 billion a year earlier.
Road transport bucked the broader decline, with the value of goods moved through the mode increasing 9.8 percent to P542.73 billion from P494.44 billion.
Meanwhile, the value of water-borne trade plunged 56 percent to P202.42 billion from P460.06 billion. Air shipments declined 16.9 percent to P557.67 million from P670.87 million.
Mineral products accounted for the largest share of domestic trade outflow volume at 2.73 million tons or 25.9 percent of the total, the PSA said.
Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes; products, whether or not containing nicotine, intended for inhalation without combustion; other nicotine containing products intended for the intake of nicotine into the human body followed with 2.25 million tons, while vegetable products accounted for 1.43 million tons.
By value, however, machinery and mechanical appliances, electrical equipment and related products led domestic trade at P183.41 billion, or 24.6 percent of the total.
The PSA said Region IV-A (Calabarzon or Cavite, Laguna, Batangas, Rizal and Quezon) remained the largest source of goods shipped across regions, accounting for 2.72 million tons, or 25.8 percent of total domestic trade volume.
The National Capital Region (NCR) followed with 1.70 million tons (16.1 percent), and Region III (Central Luzon) with 1.41 million tons (13.3 percent).