AISL member lines see 10% growth in volumes for 2007
THE Association of International Shipping
Lines (AISL) expects a minimum 10% growth in total cargo
volume this year to 1.76 million TEUs due to more favorable
business and political conditions in the country.
Last year, the 43-member shipping lines of the AISL
moved an estimated 1.6 million TEUs.
ÒThe outlook for Philippine business is very
positive this year,Ó re-elected AISL president
Octavio Katigbak told PortCalls at the sidelines of
the association’s induction ceremonies last week.
ÒWe are looking forward to increased business
as the economy takes an upturn. We expect at least a
10% volume growth starting year brought about by a steadier
economy compared to several years back,Ó he said.
Katigbak, who is also president of K-Line Philippines,
pointed out that AISL members have been enjoying the
fruits of robust worldwide economic activity for the
last few years, expanding their fleets and expecting
to take delivery of new high-capacity ships within the
next few years.
AISL members represent international container shipping
lines in the Philippines.
Katigbak said that with the political problem starting
to taper off, businesses are expected to pick up but
volume growth will still be dependent on import shipments.
Exports, he said, are still expected to take a beating
with the strengthening Philippine peso.
Katigbak hopes the export community can cope with the
currency issue faster than expected to further boost
growth areas in the country.
Aside from speedier export recovery, Katigbak stressed
on the need to hasten completion of infrastructure projects,
specifically those in the vicinity of the major gateways,
to boost the country’s attractiveness to the inter-national
market.
ÒCarriers are con-cerned over the tempo of the
in-frastructure projects. They are worried that the
projects may not be ready at the time when they are
truly needed,Ó he said.
Except a few ports such as International Container Terminal
Services, Inc. which can handle post-panamax vessels,
most Philippine ports can only handle panamax vessels.
Among Philippine Ports Authority-controlled ports, only
Batangas has the capability to handle post-panamax vessels
but the road infrastructure leading to the facility
is a big problem for shippers. As a result, the port
is shunned and is presently suffering from low volumes.
“With the trend in international shipping shifting
to new and high-capacity ships, the Philip-pines should
be ready for these changes if it wants to bring in more
cargo. Port capacity and capability should be improved,
road segments, particularly those in and out of the
ports, should also be developed with a faster pace,”
Katigbak said.
THE implementation of the 12-hour advance
inward foreign manifest requirement may be moved further
as other projects vital to its enforcement have yet
to be completed, according to Bureau of Customs (BOC)
deputy commissioner Reynaldo Nicolas.
In an interview, Nicolas hinted to PortCalls the earliest
implementation of the requirement would be toward the
end of the first semester.
He said projects on which the IFM hinges, such as the
accreditation of BOC’s value-added service providers
(VASP) and the shift to AsycudaWorld, are not expected
to be completed and tested until June.
ÒThe inward foreign manifest requirement implementation
is dependent on the implementation of these two vital
projects without which the manifest requirement is a
no go,Ó Nicolas explained.
He added that a parallel filing of the advance manifest
may required by the BOC once it starts pilot testing
AsycudaWorld by the second quarter of the year. However,
Nicolas stressed that the full benefits of the IFM will
not kick in until BOC has accredited its VASPs and AsycudaWorld
is fully operational.
Originally, the 12-hour advance cargo manifest requirement
was scheduled to be enforced March 1 but was later tentatively
moved to May 1.
Based on the original BOC timeline, the bureau should
have accredited its VASPs and implemented AsycudaWorld
by now. According to sources, the BOC is still evaluating
candidate VASPs while the implementation of AsycudaWorld
has been reset to July.
Under Customs Administrative Order 1-2007, the BOC is
requiring all shippers and vessel operators to submit
IFMs and consolidated cargo manifests not later than
12 hours prior to the cargoes’ arrival in any
Philippine port to evaluate the risk of smuggling and,
possibly, terrorism. The BOC expects accurate data through
electronic transfer coursed either straight to the BOC
or any of its accredited VASPs. Hard copies are required
for submission immediately upon arrival.
Earlier, the Philippine International Seafreight Forwarders
Association expressed concerns over the order, specifically
with regard to cargoes from Asian countries departing
during the weekend with arrivals on the same weekend
or the following Monday. It argued there is no time
to properly comply with the requirement since by the
time the local agent becomes aware of the details of
the shipment, the said cargoes would have already arrived
— in which case there would already have been
a violation.
ÒThis will not happen. In crafting the order,
we already considered the nearest port of origin and
there is no way that they can inform the BOC at least
12 hours even during weekends,Ó Nicolas explained.
Refleeting takes a backseat at Magsaysay Maritime Corp
VESSEL operator Magsaysay Maritime
Corp. (MMC) is taking a wait-and-see attitude on fleet
modernization.
MMC, the owner and operator of cargo carriers Lorenzo
Shipping Corp. (LSC) and National Marine Corp. (NMC),
said its refleeting program is still dependent on the
movement of ship prices in the import market.
ÒWe’ll wait and see until prices soften
as current prices are too expensive due to massive global
demand,Ó MMC chief operating officer for the
transport and logistics group Roberto Umali recently
said.
LSC has earlier temporarily postponed its ship acquisition
program for 2007 focusing instead on modernizing its
cargo-handling equipment.
ÒThe thrust right now is to improve the quality
of shipping,Ó said MMC chair Doris Magsaysay
-Ho.
LSC is looking to replace its two ageing German-made
vessels. The last time the company bought new ships
was in the early ‘90s.
LSC has earmarked at least P50 million for the acquisition
of 500 new containers to replace its old ones, and P20
million for hog vans or a specialized container for
the delivery of livestock.
The company expects its revenue to increase 10% as a
result of the 9% surge in cargo volume.
LSC recently began offering full containerized services
in addition to its mainstay breakbulk shipping services.
It has seven vessels.
THE Department of Transportation and
Communications (DOTC) has taken significant steps to
achieve faster, more economical and more efficient maritime
transportation of goods and resources in the Philippines.
Transport Secretary Leandro Mendoza, in a speech during
the induction of the new set of officers of the Association
of International Shipping Lines (AISL), said the need
to improve the country’s shipping industry is
imperative as the shipping business plays a critical
role in the socio-economic status of our country. Seaborne
trade, both local and international, account for almost
90% of the country’s trade.
He added that fast-breaking developments in international
trade have impacted greatly on the maritime sector.
Because of the growing needs of containerized trade,
the trend has been toward bigger ships against more
frequent sailings.
ÒIn order to face these rapid developments in
the maritime transport sector, the DOTC, through the
Philippine Ports Authority and Maritime Industry Authority,
has undertaken vigorous steps toward providing adequate
infrastructure and policy support to make maritime transport
more efficient and cost-effective in conveying services,
goods and resources across the Philippine and the world,Ó
Mendoza told ship operators and other stakeholders during
the AISL induction.
Among the steps he mentioned are the proposal to the
Office of the President to issue an executive order
on the formulation of an Omnibus Merchant Shipping Legislation,
the continued development of the transport network connecting
major highways with the roll on-roll off (ro-ro) maritime
system, and developing maritime basins and major rivers
such as the recently launched Pasig River Ferry Service.
Also included are the facilitation of requirements of
shipyard expansion and ensuring availability of steel
at a competitive price; completion of the Strong Republic
Nautical Highway and the ro-ro system; enhancement of
value-added services in transport, shipping and logistics
through consolidation centers, warehousing and inventory
management, vendor hubs/supplier parks, customs and
trade advisory services, transport management, kitting,
packaging and bundling; and the availability of enough
power supply to ports to accommodate the increase in
passenger and cargo.
Better trade facilitation
The DOTC is also pursuing the enhancement of trade facilitation
programs such as the single-window concept for import
and export transactions and single transport document
for multimodal transport; the granting of more incentives
to overseas shipping enterprises under Republic Act
9301; and the development of a national ports system
that will respond to the faster vessel turnaround and
for suitable facilities to berth larger vessels, taking
into consideration the requirements of new shipping
technologies.
“The government remains optimistic of substantially
achieving its targets considering the encouraging and
favorable macroeconomic indicators. The economic fundamentals
are up in the immediate term and government hopes to
sustain this momentum,” Mendoza said.
IMPORTS for the whole of 2006 grew
8.7% to $51.52 billion even with a 1.3% decrease last
December, according to the National Statistics Office
(NSO).
Last year’s imports growth is below the government
target of 11%, Socioeconomic Planning Secretary and
National Economic and Development Authority director-general
Romulo Neri said in a memorandum to President Gloria
Macapagal-Arroyo.
ÒWith exports posting a 13.9% growth and totaling
$47.0 billion, the balance of trade for the year stands
at a deficit of $4.5 billion, which is lower compared
to the $6.2 billion deficit in the previous year,Ó
he added.
According to the NSO, the drop in imports was due to
the contraction in most commodity goods, including capital
goods (-4.4%), consumer goods (-6.7%), raw materials
and intermediate goods (-0.04%) and special transactions
(-67.4%). Imports of mineral fuels, lubricants, and
related materials continue to maintain its positive
growth of 17.7%.
Imports of electronic products, com-prising 50% of the
December payments slowed down 0.06% as major categories
declined such as semiconductors (-1.2%), electronic
data processing (-1.1%).
The US continues to be the country’s top source
of imports with a 16.3% share, though in a much lower
scale compared to its 19.2% share in 2005. Aside from
Japan, which is the country’s second-largest source
of imports, imports from other parts of Asia have also
been growing significantly.
