ABX Pan Globe Logistics leads
list
THE Philippine airfreight industry has finally turned
a corner after experiencing a slowdown in the last couple
of years. Last year, the industry posted a 31.14% growth,
handling a total of 242.08 million kilograms (kg) from
184.59 million kg in the previous year.
Preliminary data obtained by <i>PortCalls</i>
from the Civil Aeronautics Board (CAB) showed direct
shipments increasing 47.26% to 36.67 million kg from
24.90 million kg, while consolidation was up 49% to
140.35 million kg from 94.20 million kg in 2003.
Breakbulk ship-ments, on the other hand, dipped 0.66%
to 65.06 million kg from 65.49 million kg in the previous
year.
ABX Pan Globe Logistics landed the top spot handling
16.46 million kg, accounting for 7.14% of the total
market (see table). The forwarding firm moved 3.08 million
kg in consolidated shipments, representing 2.19% of
the total market. Breakbulk shipments reached 3.10 million
kg or 5.78% of the volume.
Airlift Asia, Inc. ranked second with 12.37 million
kg, down 35.54% from the previous year's 19.19 million
kg. The company registered direct shipments of 725,124
kg, and consolidated shipments, 4.88 million kg.
Danzas AEI, Inc. came in third with total shipments
rising 3.67% to 11.59 million kg from 11.18 million
kg. In 2004, it handled 4.41 million kg in consolidated
shipments, 6.74 million kg breakbulk, and 444,692 kg
direct.
Exel Phils., Inc. is in fourth place - the same ranking
in 2003 - transporting 11.37 million kg, up 0.44% from
11.18 million kg in 2003. Direct shipments reached 433,095
kg; consolidated, 8.40 million kg; and breakbulk, 2.84
million kg.
ATE Freight Phils., Inc. was in fifth place with a total
of 10.91 million kg, accounting for 4.73% of the total
market. The company transported the highest number of
consolidated shipments for the year -10.90 million kg.
In sixth place was Asia Pacific Express Corp, which
moved 9.78 million kg. The company delivered 9.72 million
kg in consolidated cargoes.
Expeditors Philippines, Inc., climbed a notch to seventh
place from its 2003 ranking with 8.22 million kg. It
transported 6.72 million kg in consolidated shipments
and 1.39 million kg breakbulk. It held the number one
spot in 2001 when its shipments reached 62.24 million
kg.
Completing last year's list of top ten airfreight forwarding
companies were: Yusen Air & Sea Services Phils.,
formerly at number three with 7.90 million kg; Bax Global
Philippines with 6.14 million kg; and Kintetsu World
Express (Phils.), Inc. with 5.64 million kg.
TOTAL imports for January to March
this year dropped 4% to US$3.4 billion from $3.6 billion
a year ago.
The National Statistics Office reported that this was
due in part to the decline of inward shipments of electronic
products by 13.1% from last year's figure of $1.6 billion.
Payments for electronic products account for 41.1% of
the Philippines' total aggregate import bill. Importation
of industrial machinery and equipment also dropped 13%
from last year's $163.8 million.
While some manufacturers continue to decrease production
due to declining business prospects, others are increasing
production, notably companies engaged in the use of
imported mineral fuels, lubricants, and related products.
Importation of these products is up by 17.2% due to
increased investments in mining and oil exploration
projects. Earlier this month, the government reported
pledged investments of foreign mining companies worth
$1.9 billion and the issuance of about 30 mining permits
by the Department of Environment and Natural Resources.
Increases in importation for the first quarter were
also noted for the following: cereals and cereal preparations,
which can be traced to the weak first-quarter production
performance of the agricultural sector, at 53.7%; iron
and steel at 18.0%; and transport equipment at 0.04%.
Payments for imports from the top ten sources for March
amounted to US$2.6 billion, with Japan, the United States,
and Taiwan topping the list at 17.3%, 15.0%, and 9.2%,
respectively.
Other major sources of imports in March were: Singapore,
$251.69 million; People's Republic of China, $222.08
million; Republic of Korea, $188.89 million; Saudi Arabia,
$153.38 million; Hong Kong, $143.45 million; Malaysia,
$134.15 million; and Thailand, $120.33 million.
Payments for imports from the top ten sources for the
month amounted to $2.640 billion or 76.8% of the total.
DOMESTIC freight operator Lorenzo
Shipping Corporation (LSC) posted a 9.9% increase in
net income during the first three months of the year
to P18,524,869 from P16,854,362.
In a disclosure to the Philippine Stock Exchange (PSE),
the company also reported a 2.63% or P7.456 million
growth in net revenue, from P283.5 million to P291.04
million.
The implementation of a 9% and 5.5% general rate increase
in October 2004 and January 2005, respectively helped
boost revenue.
Operating expenses grew P4.9 million or 1.9% due to
fuel price increases and higher cost of repairs and
maintenance. Interest and finance charges decreased
P2.9 million or 15.36% as a result of repayment of loans
while miscellaneous income also registered a P4.6 million
or 24.06% reduction due to fewer door-to-door shipments.
LSC transported 1.3% more containerized cargoes during
the first quarter of the year totaling 25,008 TEU compared
with 24,682 TEUs in 2004.
Increased liftings were attributed to greater foreign
box shipments, whose volume for the first quarter doubled
compared to the same period last year. However, domestic
cargoes were lower for both southbound and northbound
shipments, the company said.
Vessel trips for the quarter were eight short vis a
vis the same period last year because of drydocking
of two vessels.
Last March, LSC's sale by its parent firm Neptune Orient
Lines (NOL) to National Marine Corporation (NMC) was
signed. NOL's shareholdings in the company consist of
28.68% of the outstanding common stock and 82.19% of
the convertible preferred shares.
AS of March, loans under the Sustainable
Logistics Development Program (SLDP) for the cold chain
sector reached a total of P934.3 million covering 26
projects, and for the grains highway component, P861.9
million for 124 projects.
In its latest report, the Development Bank of the Philippines
(DBP) said its cold chain loan program has assisted
the private sector with projects involving seafood processing,
meat processing, refrigeration, cold storage and packaging.
These projects are located in Ilocos, Pangasinan, Metro
Manila, Masbate, Iloilo, Bohol, Cebu, Cagayan De Oro,
Davao and General Santos.
The grains highway component, on the other hand, has
funded grains processing, milling, bulk storage and
loading facilities in Ilocos, Isabela, Aurora, Bataan,
Tarlac, Bulacan, Batangas, Mindoro, Bohol, Negros, Leyte,
Cotabato, Agusan, Bukidnon, Davao, Palawan and Zamboanga.
"We are equally supporting the cold chain and grains
highway which are an integral component in the efficient
handling and transport of perishables such as grains,
fruits, vegetables, fish, meat and poultry products
from farm to end-users. The objective is to cut down
on spoilage or wastage and the cost of goods through
a more efficient and reliable transport system,"
said DBP assistant vice president Fausto V. Aragones,
Jr.
Among the priorities of DBP, the SLDP not only promotes
investments in ships and ports but is seen to eventually
create more jobs, bring down the prices of food and
services, and eventually alleviate poverty particularly
in the countryside through the introduction of modern
storage handling and transport.
The bank has P17 billion in funds available for logistics
project investments, P7.5 billion of which is allotted
to the Road Roll-on/roll-off (ro-ro) Terminal System
(RRTS) and P6.5 billion and P16 billion for the bulk
grains highway and cold chain, respectively.
To date, there are 22 connections in the RRTS still
open for private sector and local government units investments,
Aragones said. These are: Bogo to Placer; Pilar to Aroroy;
Maasin to Ubay; Manapla to Ajuy; Masbate to Talisay
to Jacinto then to Bulan; Manila to Orion; Ternate to
Mariveles; Aroroy to Boca Enga–o; Calatagan to
Abra de Ilog; Del Carmen to Caglanao; Lupon to Samal;
Magdiwang to Romblon to Carmen then to Pinamalayan;
Mambajao to Jagna; Naval to Binalayan to Cataingan then
to Calbayog; Pascual to San Narciso then to Pasacao;
Pio Duran to Claveria; Roxas City to Balud; Taytay to
Coron then to San Jose; Caticlan to Semirara then to
Bulalacao; Union to Sta. Fe; and the Northern Triangle
connecting Palanan to Maconacon to San Vicente to Basco
then to Curimao.
Nippon Yusen Kaisha (NYK) recently
deployed a new vessel, the 450-TEU MV Shimanami, to
the Manila International Container Terminal (MICT).
Arriving from Singapore, the vessel offloaded 43 TEUs
and loaded 153 TEUs. The vessel was bound for Kaoshiung,
Taiwan. Antonio Mozar, International Container Terminal
Services, Inc. (ICTSI) Superintendent (2nd from left),
awarded a certificate of commemoration to Capt. Gary
Superable, Vessel Master (3rd from left). Also present
during the maiden call were (L to R) Fidem Sigaya, NYK
Terminal Operations Manager, and Marlon Manansala and
Nestor Lisondra, ICTSI
Jan-April
passenger traffic up 8.7%, cargo 4.7%: IATA
THE International Air Transport Association
(IATA) recently reported an 8.7% growth in passenger
traffic but slower cargo growth of 4.7%.
IATA director general and CEO Giovanni Bisignani said
the continuing extraordinary price of oil and increasing
pressure on yields mean that a speedy transition to
a low-cost industry is critical.
IATA said capacity expansion in all regions for the
first quarter was below traffic growth, maintaining
load factors at 73.6% for the period. Freight expansion
for the first four months was 4.7%. This reflects a
rebound in April over weak results for February and
March. Distortions due to holiday periods continue to
make year on year comparisons difficult.
"While there has been some relief in fuel prices
in the last weeks, the current levels are considerably
higher than the $38 per barrel of last year. This is
the single biggest factor impacting our profitability.
Efficiency across the industry's value chain is the
only solution," Bisignani said.
