Nippon Express keeps top air forwarder title in 2007
THE Philippine air cargo industry registered
minimal growth in 2007, according to latest data from the
Civil Aeronautics Board (CAB).
Increases in direct and breakbulk shipments offset a dip in
consolidations, bringing the total airfreight throughput (import
and export) to 232.692 million kilograms (kg) in 2007, up
0.9% from the 230.607 million kg posted a year earlier.
Representing the bulk of air cargo shipments at 46.6% of the
total in 2007, consolidations dropped 8% from 118.392 million
kg to 108.489 million kg in 2007.
The share of direct shipments to the country’s total
air cargo throughput remained the same at 14.2% in 2007 from
2006. Direct shipments last year reached 33.153 million kg,
1.3% more than the 32.712 million kg in 2006.
Breakbulk shipments hit 91.048 million kg, up 14.5% from the
79.502 million kg handled in 2006. In 2007, breakbulk shipments
contributed 34.5% to the total air cargo throughput, down
from the previous year’s 34.5%.
Industry heavyweights
For the third consecutive year, Nippon Express Philippines
Corp remained the leading international airfreight forwarder
in the Philippines, handling 30.935 million kg of imports
and exports in 2007 and accounting for 13.29% of the total
market (see table
of top 30 international airfreight forwarders in the Philippines).
Yusen Air and Sea Services Philippines climbed a slot from
its 2006 ranking to land in second place last year. It shipped
28.431 million kg for a 12.22% market share.
Kintetsu World Express (Phils.), Inc saw the biggest jump
in 2007 ranking, climbing seven slots to third place from
11th in 2006. In 2007, Kintetsu handled 13.287 million kg
and had a 5.71% market share.
Airlift Asia, Inc dropped to fourth place from second in 2006,
shipping 11.843 million kg and giving it a market share of
5.09% last year.
Schenker Philippines, Inc dislodged Expeditors Inc from the
fifth spot after handling 8.793 million kg last year for a
3.78% market share.
Expeditors dropped to 17th place in 2007, when it shipped
3.295 million kg, giving it a market share of 1.42%.
Completing the list of top 10 international airfreight forwarders
in the Philippines for 2007 were DHL Global Forwarding Inc
(shipping 8.764 million kg for a 3.77% market share); Fritz
Logistics Phils Inc (8.7 million kg, 3.74%); Kornet Express,
Inc (8.44 million kg, 3.63%); Panalpina World Transport (8.108
million kg, 3.48%); and Transglobal Consolidators, Inc (6.282
million kg, 2.70%).
The 41,000-ton MV Argolikos, the first ship to be built in the Subic Bay Freeport and the first Philippine-made container carrier, is scheduled for delivery this month to Greek shipping firm Dioryx Maritime Corp.Back to Top
First RP-built container carrier named
PRESIDENT Gloria Macapagal-Arroyo formally
named the first ship built by Korean shipbuilder Hanjin Heavy
Industries Corp.-Philippines (HHIC-Phil) in its Subic Bay
shipyard.
The MV Argolikos, named after Argolikos, a small gulf located
at the east coast of Peloponnese, Greece which opens into
the Aegean Sea, is also the first container carrier to be
built in the country.
Following the naming ceremony, the 41,000-ton carrier will
be delivered to its Greek owner, the Dioryx Maritime Corporation,
this month.
The MV Argolikos has a market price of about $60 million.
It weighs 41,000 tons, has a length of 258.9 meters, a width
of 32 meters, a height of 19 meters, and actual speed of 24.6
knots.
The ship underwent the required sea trials on May 27-29, and
performed well beyond expectations.
Prior to the sea trial, the vessel was issued an attestation
from the Bureau Veritas, a vessel certification agency. Hanjin
also secured for the ship a cargo ship safety equipment certificate,
a complete crew list, and a certificate of competency for
the Korean crew from the Busan Regional Maritime Affairs and
Fisheries Office.
Subic Bay Metropolitan Authority chairman Feliciano Salonga
said the MV Argolikos made local maritime history when it
was completed six months ahead of schedule after the keel
was laid in September last year.
While Cebu was ahead of Subic in shipbuilding, after the Japanese-owned
shipyard in Balamban began building ships in 1994, the largest
ships will be built in the Subic Bay Freeport, he noted.
“This is where big ships for exports to other countries
will be made,” Salonga said.
The SBMA chair said the Argolikos will be the first of six
units of container vessels lined up for delivery to Dioryx
starting 2009.
HHIC-Phil is also eyeing the manufacture in Subic of some
of the largest containerships in the world, with gross tonnage
of 100,000 tons.
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Customs overshoots first-half collection target
THE growing volume of oil imports and the
importation of government agencies such as the National Food
Authority (NFA) and the Department of Public Works and Highways
helped the Bureau of Customs (BOC) surpass its revenue collection
target in June as well as the first half of the year.
Latest data from the BOC show that collection for the first
half of the year stood at P117.123 billion or P708 million
higher than the P116.415-billion target for the period.
For June alone, the BOC exceeded the target by P3 billion
after registering a total of P24.98 billion collection versus
the target of P21.47 billion, erasing the P2.80-billion deficit
incurred in the first five months of 2007.
The BOC also attributed the positive performance to the strengthening
US dollar, updated valuation database, coupled with the tagging
system for shipments to be subjected to x-ray scanning.
The top gainers are the Port of San Fernando, collecting P201
million, P99 million higher than the P102-million target;
Ninoy Aquino International Airport, which posted a collection
surplus of P236 million from its P1.220-billion target; Port
of Legaspi, collected P6.5 million, nearly double its target
of P3.4 million; and Port of Iloilo which collected P8 million
more than its P25-million goal.
The Port of Cebu collected P496 million, up P46 million than
the P450-million target; the Port of Cagayan de Oro, collected
27.6% more than its target of P265 million; the Port of Davao
exceeded its assigned target of P150 million by P9 million,
and the Port of Clark posted a P4-million surplus from its
P58-million target.
The Office of the Commissioner, tasked to collect non-cash
payments for government importations, posted a P7.390-billion
collection from tax expenditure funds (TEF), mostly from the
NFA importation. The higher collection was made possible by
the lifting of the quantitative restriction on rice imports.
“The original target for TEF for the month was only
P1.577 billion, but with the boost in volume and value of
the commodity, the OCOM managed to post a P5.813 billion surplus
for June alone,” it said.
Customs Commissioner Napoleon Morales said the average value
for rice has gone up to an average $800 per metric ton (MT),
compared last year’s $269 per MT.
The Manila International Container Port, Port of Manila and
Port of Batangas, the country’s three major ports failed
to meet their respective targets, posting deficits of P141
million, P1.709 billion and P1.555 billion, respectively.
The smaller ports of Tacloban, Surigao, Zamboanga and Subic
also narrowly missed their targets for June.
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Prolonged SLI vessel grounding to cause trade imbalance
SMALL- and medium-scale enterprises (SMEs)
in the countryside will suffer heavily if government prolongs
the grounding of Sulpicio Lines, Inc (SLI) passenger vessels,
according to a ranking official of the Philippine Liner Shipping
Association (PLSA) which counts SLI as a member.
Despite allowing all Sulpicio freighters to resume operation
last Wednesday, the government decision only restores 20%
cargo capacity to the market. SLI supplies 40% of the country’s
cargo capacity but half of that is provided by SLI’s
combination passenger-cargo vessels.
SLI’s combi vessels are still grounded as of this writing
following the sinking of the Princess of the Stars at the
height of typhoon Frank. The accident left hundreds dead,
with many bodies yet to be recovered.
All combo vessels have yet to be cleared for sailing because
of deficiencies in seven earlier inspected by the Maritime
Industry Authority (Marina).
“The (grounding) will really render a trade imbalance…
considering Sulpicio is the one servicing routes other carriers
do not want to tap as they are less profitable,” the
PLSA official who refused to be quoted said.
“Reports show that shippers from Masbate, Leyte and
other areas—areas that may be considered almost missionary
—have seen delays in the shipment of cargoes that have
resulted in higher overheads,” the source said.
He added there is a push for the immediate lifting of the
grounding order after the safety audit of the vessels is completed.
“The effects could have been more glaring if the incident
happened during peak season as there will really be no way
to woo other operators to alter their operations just to accommodate
the clients of SLI,” the PLSA official explained.
Marina is, however, not in a rush to lift its grounding order
precisely because of the lean season. The peak season begins
in October.
“There are other newer vessels that will capture the
volume that will be left by Sulpicio and it won’t be
a problem,” Marina administrator Vicente Suazo, Jr.
said.
At last week’s Marina hearing on the possible cancellation
of the company’s Certificate of Public Convenience,
SLI counsel Atty. Arthur Lim reiterated SLI’s request
to allow vessels already inspected by Marina to resume operations,
citing even greater losses for the company if this does not
happen soon.
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Tough times call for better planning, greater
client discrimination, good old rate increase
WITH fuel prices continuing to rise as they
do, most cargo service providers are adopting measures to
ensure their businesses survive the grueling economic conditions.
One such company, Nonpareil International Freight and Cargo
Services, Inc, said it may be more selective with clients.
“The fuel issue has really affected our operations particularly
(in the area of) collection, recurring costs and other external
factors,” Nonpareil International Freight and Cargo
Services, Inc. president Rolando Quiambao told PortCalls.
“Since January last year, our fuel expenses have risen
more than two-fold... we have to take measures to reduce (costs)
without sacrificing revenues,” Quiambao said.
“If worse comes to worst, we will drop our clients that
contribute less than 10% to our total collection and will
only maintain those above it,” Quiambao explained.
In addition, Nonpareil would consider increasing rates but
on a case-to-case basis, with the hike dependent on the kind
of service and volume offered.
Nonpareil operates up to 40 trucks. Despite the tough economic
times, the company is planning to increase its fleet to 50
to accommodate its growing clientele.
Meanwhile, All Systems Logistics, Inc. (ASLI) will rely on
better planning to help the company tide through the difficult
times.
ASLI chief Dexter Yu, who is also president of the Philippine
International Seafreight Forwarders Association (PISFA), earlier
told PortCalls his company is looking at designating pickup
points and pickup dates instead of the current practice of
picking up cargo anytime and anywhere.
“Proper planning I think is enough to mitigate the effects
of the spike in fuel prices on our trucking operations…
there is still no need to cut down trips,” Yu explained.
He added other PISFA members are also adopting similar measures.
Perhaps in a more desperate situation are truckers, which
do not have other businesses to rely on for subsidy.
The Allied Transport Group (ATG), one of the largest truck
operators at the North Harbor, said its members can no longer
subsidize their fuel expenses and need to increase costs or
shipments may face delays.
“The industry is really down right now due to the increasing
fuel cost. Hopefully, our clients, the carriers and other
stakeholders would be able to understand our plight,”
ATG president Catalino Costales said.
He added his group is ready to launch another truck holiday
to force clients to agree to their terms. — C. Paringit
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PISA submits recommendations on sailing during typhoons
THE Philippine Interisland Shipping Association
(PISA) said a government proposal to restrain all from vessels
plying the local trade during typhoons will only cause delays
in movement of goods.
Instead PISA — an umbrella organization of liner, roll
on-roll off, tanker, tug and barge operators — said
a win-win solution where both passenger and cargo security
and vessels’ commercial viability are guaranteed.
In a recommendation forwarded last week to the Maritime Industry
Authority (Marina) Board, the association proposed that when
typhoon signal number 1 is hoisted at the point of origin,
route or destination of a vessel, the decision for the vessel
to proceed with the voyage should rest on the master of the
vessel with the approval of the ship owner after giving careful
consideration to the possibility of the signal being upgraded
anywhere along the voyage path.
During typhoon signal number 2 or 3 at the origin, route or
destination, the association recommended that no vessel, regardless
of size be allowed to depart except for sheltering purposes,
in which case, no passenger should be allowed to stay on board.
Cargo may be allowed to stay on the vessel for practical reasons,
it said.
“The national system for communication should also be
improved as there are areas where there is no telephone signal
or where signal is week like areas such as Sibuyan Island,
Corregidor, Bataan, Western Panay Mindoro and certain parts
of Palawan,” PISA said in its proposal.
“Government is enjoined to take on this project with
the possibility of privatizing it when the time is right considering
the huge investment it entails to improve communication in
such areas,” it added.
“To ensure speedy dissemination of weather forecasts
from PAGASA, access via text message systems can be worked
out with the telecommunication companies,” it said.
PISA also asked the Philippine Ports Authority to review capacities
of sheltering areas.
It added that the Philippine Coast Guard should be equipped
with better communication systems and all-weather vessels
than can withstand strong winds in the scale of a typhoon
signal 2 or 3.
Entire fleet grounding policy
“We are also pushing for the existing Marina policy
on the grounding of the entire fleet of a company involved
in a maritime accident and subject the vessels to audit to
ascertain each vessel’s compliance with existing law,”
PISA said.
“However, we would like to emphasize the importance
of establishing a clear and reasonable time frame within which
the vessel audit can be completed so as not to adversely affect
public service,” it added.
PISA submitted its proposals after government ordered the
review of guidelines during typhoons after the recent sinking
of the MV Princess of the Stars in the wake of typhoon Frank.
Under current guidelines, vessels of 2,000 gross tons or more
may set sail when typhoon signal 1 or 2 is hoisted. But no
vessel is allowed to sail during signal number 3.
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Subic's container terminal 1 is ISPS-compliant
THE New Container Terminal 1 (NCT-1) in Subic Freeport is
now compliant with the International Ship and Port Facility
Security (ISPS) Code and has been awarded a three-year certification
by the Office of the Transport Security.
“As the new trading gateway in northern Philippines
serving the industries of Subic, Clark and Tarlac economic
zones, we are priming the NCT-1 to be at par with the world’s
best practices in terminal operations,” said Aurelio
Garcia, general manager of NCT-1 operator Subic Bay International
Terminal Corp.
“More than complying with the ISPS, the safety and security
procedures and installations in place at the NCT-1 ensure
the quality of our container handling services,” he
stressed.
The ISPS Code is a security regulation by the United Nations’
International Maritime Organization established in 2004 to
counter increasing terror threats in global maritime trade.
The code is an anti-terrorism measure which covers all seafaring
vessels and sea ports worldwide.
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Customs defends cash incentives
THE Bureau of Customs (BOC) defended incentives granted earlier
this month to its employees for surpassing the bureau’s
2006 collection, saying they were aboveboard and passed scrutiny
from other government agencies.
Customs commissioner Napoleon Morales said that contrary to
claims of some sectors, the agency did not solicit cash advances
from oil firms to meet its target.
BOC collected P1.98 billion in 2006.
From the incentives, Morales received a share of P500 million—the
highest from among the beneficiaries holding an attritable
position—while the share of his deputy commissioners
ranged from P500,000 to P800,000.
Morales and his deputies agreed to return their take as a
show of good faith that the incentives are made aboveboard.
Under the Lateral Attrition Law, the BOC is entitled to 15%
of the collection surplus wherein 75% will be in cash and
the remaining 25% in kind or value-added service such as computer
upgrades and office renovation.
“No shortcut was made. No accounting gimmicks. We simply
followed the rules. Our performance went through a fine-tooth
comb by the review committee,” Morales said.
“The cash reward was granted pursuant to the guidelines
of the law, based on a formula created by an independent body,
which conforms to internationally recognized standards, and
approved by the government,” he added.
Morales claimed the “revenue surplus of the BOC was
even reduced by the Revenue Performance Evaluation Board (RPEB)
when the latter took into account efficiency and other factors
which boosted BOC collection.
The RPEB is composed of representatives from the Department
of Finance, Department of Budget and Management, National
Economic and Development Authority, BOC, and rank-and-file
representatives.
Morales said the payment of duties by oil companies are fixed
rules set by the Central Bank and could not be used to inflate
the collection.
He explained that under Central Bank Circular 909 issued in
1983, a “collection or deposit” of the “full
amount of duties” upon the opening of a letter of credit
by an importer with an authorized agent bank is required.
“The importer is required by the bank to accomplish
the Import Entry Dec-laration and thereafter, the ‘full
duty’ is collected by the bank,” Morales explained.
“In the above transaction, a perforation or ‘check
write’, instead of a BOC official receipt is the accepted
proof of payment that duties have been collected on the in-coming
shipment,” he said.
This scheme, he added, has been observed by the BOC since
the Marcos era and has proven effective against pilferage
of duties paid.
Oil companies, as importers, are covered by CB regulations
and such payment scheme has long been the standing practice
as far as importations of oil companies’ ration are
concerned.
Under the scheme, oil import duties and fees are paid to the
Bureau at the end of each month to facilitate transactions
for the succeeding month. This is done so that importers will
not default on the payment of taxes and to avoid the possibility
of importers running away from their tax obligations and getting
their shipment without paying duties.
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Refloating of Sulpicio vessel set soon
THE refloating of the ill-fated MV Princess of the Stars
of Sulpicio Lines, Inc (SLI) is expected to commence in the
next few days. This after the Department of Transportation
and Communications (DOTC) deadline given to SLI to hire a
salvor lapsed over the weekend.
Once refloated, search and retrieval operations for dead passengers
and recovery of the toxic endosulfan, part of the cargo carried
by the ship, would be easier.
DOTC also wants to immediately refloat the sunken ship to
reduce damage to the province of Romblon, particularly the
town of San Fernando, a predominantly fishing community. Since
the accident, the townfolk have been deprived of their livelihood.
Under proposed salvage operations adopted during a meeting
by Task Force Princess Star last week, three methods are being
considered: towing the vessel toward shallower water to make
retrieval operations easier; towing the vessel toward deeper
waters before refloating; or simply turning the vessel over
from its current state.
DOTC undersecretary and Task Force chief Ma. Elena Bautista
said the task force would like to activate the refloating
plan next week because salvaging operations can take up to
three months.
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K-Line Air on track to meet 2008 goals as it turns 18
DESPITE tough conditions brought about by the continuing
surge in fuel prices, K-Line Air Service Philippines (KLASP)
has reached its 10% growth target in the first half of 2008,
putting it in sight of its full-year targets.
As in the past, KLASP — which is now entering its 19th
year in the air cargo forwarding industry — is banking
on its dedicated staff and management coupled with the company’s
efficient and cost-effective offerings to pull off a positive
performance for the year.
KLASP Airfreight manager and ISO Management Representative,
Ronnie Roman told PortCalls continuous improvement in all
business aspects, including its IT systems, is also key in
the company’s success.
“Leadership and our cost-conscious efforts separate
us from other air cargo forwarding firms. And being an ISO-certified
company, we are committed to making changes for the continuous
improvement and efficiency of our services. These qualities
give our customers the confidence that they are in partnership
with a quality company managed by well-trained professionals,”
Roman said.
“In addition, KLASP is committed to making necessary
changes and adapting to the fast global market demands for
us to meet not only our corporate profitability targets but
also our customer’s requirements,” he said.
To mitigate effects of the unabated surge in fuel prices,
KLASP is eyeing to adopt an even better-planned dispatching
system.
It may also implement staff rightsizing although Roman does
not see this happening anytime soon as the measure was already
implemented a few years back.
The company will continue to provide training to employees
to help them develop their skills.
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