CARGO and mail traffic to and from
the Philippines dropped 17.92% in the first three months
of the year to 54,951,908 kilograms (kg) from 66,953,178
kg in 2004 (see table on page 3), according to preliminary
data provided by the Civil Aeronautics Board (CAB).
Aircargo players say the decline is a direct result
of constantly rising price of aviation fuel, which has
already reached an all-time record high of $70 per barrel
in March.
Total exports carried by air for the
period totaled 30,205,747 kg, while imports were at
24,746,161 kg.
Flag carrier Philippine Airlines remains
on top spot with total cargoes handled at 12,507,108
kg from January to March this year. This was up a notable
61.90% from 7,725,005 kg recorded by CAB during the
same period last year. Inbound cargoes reached 5,062,851
kg, and outbound 7,444,257 kg.
Second placer was Hong Kong-based Cathay
Pacific with a total of 6,999,141 kg, slightly lower
than last year's 7,124,715 kg. Imports and exports were
at 3,763,230 kg and 3,235,911 kg, respectively.
Singapore Airlines landed in third
place with its total shipments increasing 12.10% to
6,202,421 kg from 5,532,932 kg. Inbound shipments hit
3,153,232 kg, while exports reached 3,049189 kg.
In fourth place was Northwest Orient,
which carried 3,366,584 kg during the period. This was
16.36% more than the 2,893,245 kg last year. Inbound
and outbound cargoes totaled 2,206,865 kg and 1,159,719
kg, respectively. Despite the 30.37% decline in its
total shipments, Korean Air ranked fifth with 3,192,074
kg from 4,584,447 kg. The airline carried 1,124,763
kg imports and 2,067,311 kg exports.
Japan Airlines was in sixth place with
2,591,167 kg, down 3.42% from 2,682,839 kg. The carrier's
imports and exports were at 583,114 kg and 2,008,053
kg, respectively.
Rounding up the top ten list were:
Thai Airways with 2,548,387 kg, down 22.21% from 3,276,180
kg; Eva Air with 1,919,414 kg, down 55.77% from 4,339,593
kg; Asiana Airlines with 1,708,950 kg, also down 30.28%
from 2,451,332 kg; and Gulf Air, with 1,643,102, up
12.29% from 1,463,320. - Maritess R. Mesias
PHILIPPINE exporters were recently
urged to pay closer attention to food product quality
and standards requirements in view of stricter importation
rules in the European Union and the United States, two
of the world's largest export destinations of food products.
At the recently concluded IFEX Symposium:
The Global Challenge of Food Safety and Regulatory Compliance
organized by the Center for International Trade Expositions
and Missions, US food regulations consultant John M.
Tisler said food exporters, including those in the Philippines,
should be acquainted with US requirements before shipping
to the US.
The US Bioterrorism Act of 2002 requires
prior notice for food exports to the US: two hours before
arrival by land; four hours before arrival by air or
by rail; and eight hours before arrival by sea. The
act empowers the US Food and Drug Administration (FDA)
to detain food believed to be contaminated and presents
threat to humans and animals. Importing countries should
also determine the legality of the products they are
transporting. This can be done by reviewing the product's
label and checking if the food is subject to the FDA's
import alert or detention without physical examination.
Of Philippine food imports that entered
the US from October 2003 to September 2004, 56,808 lines
were allowed entry, 3,118 inspected, and 887 detained.
Tisler said most "problem foods" exported from the Philippines
to the US are fishery and seafood products, macaroni
and noodle products, and fruit and fruit products. The
Europeans, on the other hand, are strict about product
distinction (animal and plant origin); health status
of exporting country; and approval of establishments
in the exporting country.
John Paul Iñigo, Commercial Attache,
Philippine Trade and Investment Center in Brussels,
said non-compliant consignments are subject to detention,
destruction and redispatch. The Philippines is an accredited
country exporter of fishery and aquatic products, except
bivalves and mollusks, to the EU. Country accreditation
for fresh meat, meat products, poultry and dairy products
has also been filed.
DBP
lowers interest rates to attract shipping investors
MORE shipping investors, particularly
in the Road Roll-on / Roll-off (ro-ro) Terminal System
(RRTS), are expected to avail of loans under the Sustainable
Logistics Development Plan (SLDP) after the Development
Bank of the Philippines (DBP) reduced its interest rates
by a percentage. From 8.5% per annum, the interest rate
for shipping loans on missionary routes was cut to 7.5%.
The 9.5% interest rate per annum for commercial routes
is also down to 8.5%.
DBP assistant vice president Fausto
V. Aragones, Jr. said the loan value of classed vessels
has also been increased from 50% to 60% as an additional
incentive.
He added DBP is closely coordinating
with the National Development Company for the establishment
of a Maritime Credit Corporation. Once in place, the
project will give shipping companies the option to enter
into a lease-purchase agreement for the acquisition
of vessels.
Most ro-ro operators resort to other
financing schemes offered by other agencies to acquire
imported second-hand vessels due to stringent requirements
of the DBP.
THE Development Bank of the Philippines
(DBP) is proposing additional links to the Road Roll-On/
Roll-Off Terminal System (RRTS) to explore areas not
yet connected to the Strong Republic Nautical Highway.
DBP assistant vice president Fausto
Aragones, Jr. said the bank is exploring a triangular
connection for Ilocos Norte, Batanes, Cagayan and Isabela
to harness trade and tourism activities in the area.
In addition, DBP has outlined several
links that will connect Luzon to Palawan dubbed as the
"Palawan Nautical Highway." The network starts from
Manila to Calatagan, Batangas, Calatagan to Abra de
Ilog, Abra de Ilog to San Jose, San Jose to Coron, Coron
to Taytay, Taytay to Puerto Princesa and another from
Taytay to El Nido (all via land).
These proposed links are on top of
the major crossings earlier promoted by DBP to promote
intra and inter-regional transportation and commerce.
These crossings will connect Bogo, Cebu to Polompon,
Leyte; Toledo City to San Carlos City; Tabuelan, Cebu
to Escalante, Negros Occidental; Sta. Fe, Bantayan Island
to Remigio, Cebu; Loon, Bohol to Argao, Cebu; Santander,
Cebu to Sibulan, Negros Oriental; and Dumanjug, Cebu
to Guihulngan, Negros Oriental.
Aragones said the RRTS has benefited
the government and private sectors to the tune of P1.74
billion covering 14 projects involving vessel acquisition/upgrading
and multi-purpose port construction.
ICTSI
reports 66% jump in first-quarter net income
INTERNATIONAL CONTAINER TERMINAL SERVICES,
INC. (ICTSI) reported first-quarter consolidated net
income of P275 million, some 66% higher than the P166
million reported in the first quarter of 2004.
The growth in earnings for the quarter
resulted principally from increases in volumes handled
by Tecon Suape, S. A. (TSSA), which operates the Suape
Container Terminal (SCT) in the state of Pernambuco,
Brazil, and the company's flagship Manila International
Container Terminal (MICT) in the Philippines.
Commenting on the company's performance,
Enrique K. Razon Jr., ICTSI chairman and chief executive
officer, said, "The first quarter is traditionally our
weakest; these strong results show that we are off to
a great start in 2005, and continue to deliver the kind
of positive trajectory in profit growth we established
last year."
ICTSI handled consolidated volume of
443,373 twenty-foot equivalent units (TEUs) during the
first quarter, an increase of 12% compared to 397,190
TEUs handled in the same period in 2004. Including volume
handled by affiliate, South Cotabato Integrated Port
Services, Inc., cargo handler at the Port of Gen. Santos,
group-wide volume at the close of the first quarter
was 469,626 TEUs, an increase of 11% over the previous
year's volume of 423,934 TEUs TSSA continued to deliver
significant increases in volumes for the quarter in
review, registering 35% volume growth over the previous
year. The MICT accounted for the bulk of consolidated
volume, with first-quarter volume growing 14% over the
2004 first quarter volume. Foreign subsidiary Baltic
Container Terminal (BCT) in Poland posted a 4% growth
in volume compared to the prior year period.
Consolidated gross revenues from port
operations increased 19% to P2.37 billion from P1.99
billion reported for the first quarter of 2004. Net
revenues, or revenues from port operations after deducting
port authorities' share, amounted to P1.7 billion, an
increase of 22% over the same period last year.
THE continuous reduction in demand
for electronic products in the world market has led
to a second-month decline in the country's merchandise
exports from $3.35 billion to $3.256 billion or 2.8%
in March. The National Statistics Office said this followed
February's 0.6% decline.
Electronic exports, which accounted
for 66.4% of the total shipments, fell 3.7% to $2.16
billion in March after dropping 0.9% in February. Reduced
global consumption was attributed by most analysts to
continuously rising oil prices.
Still, for the first three months of
the year, total exports were up 3.6% from a year earlier
to $9.52 billion. The government expects an 8% increase
this year after a growth of 7.5% to $40.3 billion in
2004. Reduced shipment of electronic data processing
was the main reason for the overall drop in electronics
exports.
The second-largest export earner are
apparel and clothing accessories with a combined share
of 4.6% in March but receipts were down 17% to $149.23
million. Ignition wiring set and other wiring sets used
in vehicles, aircraft and ships ranked third with revenues
of $54.09 million, down 1.6% from $54.96 million during
the same period last year. Other products manufactured
from materials imported on consignment basis ranked
fourth with sales amounting to $42.21 million or a year-on-year
decline of 31.3%. Other top exports in March were woodcraft
and furniture, down 23.7% to $42.19 million; cathodes,
$35.92 million; and petrol products, $34.32 million.
