This paper focuses at the urban freight transport industry at present. It presents an overview of the commodity flow as a system in Metro Manila, identifies the major problem areas that affect goods movement and assesses key factors influencing its physical distribution. In this research, the emphasis is on the problems of the freight movement because most of the opportunities and research are in this area. It provides information on urban freight characteristics in Metro Manila. It then describes the physical distribution pattern and the role of the government and the private industries in freight movement. The research summary includes among others: the failure on the part of the government to directly address the real causes of problems affecting goods flow and the failure for the private industries/commercial carriers to determine the optimal distribution channel that will eliminate unnecessary transport transfers from one depot to another.