APL tops 2007
RP-US agri products container trade
AMERICAN President Lines (APL) was the market
leader in the Philippine-US agricultural products container
trade, lording over the sector in 1997 and again in 2007,
according to documents obtained by PortCalls from the US Department
of Agriculture (DA).
The US DA document showed APL grew its market share in agricultural
products shipped to the US by eight-percentage points from
14% in 1997 to 22% in 2007. From handling 3,900 TEUs mostly
from Philippine fruit producers in 1997, the carrier shipped
169% more to 10,500 TEUs ten years later (see
table).
In second place for 2007 was Hong Kong-based Orient Overseas
Container Line (OOCL) with a 19% market share for the Philippine-US
agricultural trade. It handled 2,800 TEUs in 1997 to 9,100
TEUs in 2007, or an increase of 225%. In 1997, OOCL cornered
10% of the market.
From second place in 1997, Korea’s Hanjin Shipping slipped
to fourth place in 2007 despite a 93% jump in cargo volume
from 3,100 TEUs in 1997 to 6,000 TEUs last year for a 13%
market share. In 1997, Hanjin accounted for 11% of the market.
In third place was Maersk Lines with a 14% market share in
2007 from 8% in 1997. The world’s biggest international
container carrier climbed four spots last year from seventh
place in 1997. Shipments soared 219% to 6,700 TEUs in 2007
from 2,100 TEUs in 1997.
Yangming Marine Transport Corp occupied the fifth position
with an 8% market share handling 6,000 TEUs in 2007. It was
not part of the list of top 10 shipping lines for the Philippine-US
route in 1997.
From fifth place in 1997, Hyundai Merchant Marine came in
sixth last year cornering 7% of the pie. In 1997, it only
had a 2% market share. Cargo volume last year was 3,800 TEUs
from 2,400 TEUs in 1997.
Evergreen Line dropped a notch from sixth place in 1997 to
seventh in 2007. Its market share also dipped two-percentage
points from 8% in 1997 to 6% last year. Shipments grew 54%
to 3,400 TEUs last year from 2,200 TEUs in 1997.
Completing the list of top 10 shipping lines for the Philippine-US
agricultural trade in 2007 were NYK Line, which handled 2,600
TEUs; Hatsu Marine, 1,100 TEUs; and Mitsui OSK Lines, 800
TEUs. Each of the carriers cornered about 2% of the market.
The remaining 5% of the pie was divided among remaining players
servicing the route.
Falling off the list of top 10 container shipping lines in
the Philippine-US agricultural trade for 2007 were China Overseas
Shipping Co, which used to occupy the 10th spot in 1997 and
Madrigal Shipping Lines, previously in eighth place.
Sea-Land also dropped off the list because it has been bought
by Maersk in the intervening years.
Most popular gateways
In terms of gateways, the Ports of Manila received the bulk
or 80% of the traffic last year, followed by Cebu with 9%;
Davao, 4%; Cagayan de Oro, 3%; and Mandaue, 2%. Other ports
in the country received the remaining 2%.
The top agricultural products shipped between the Philippines
and the US in 1997 and also in 2007 included wheat, soybeans,
rice, soybean meal, feed, dairy, meat and poultry, fruit and
vegetable, processed food and vegetable, fruit and vegetable
juice, fish and forestry goods. Last year, the trade amounted
to $1.15 billion, according to the US DA data.
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ICTSI revenues up almost 50% in first semester
INTERNATIONAL Container Terminal Services,
Inc (ICTSI) reported a 49% increase in gross revenues from
port operations in the first half of the year to P9.54 billion
from P6.40 billion in the same period last year, thanks to
the strong performance of its local and foreign subsidiaries.
In a recent report to the Philippine Stock Exchange, ICTSI
said earnings growth was driven mainly by strong volumes in
Manila, the southern city of Davao and in Brazil, Madagascar,
China, Ecuador and Georgia.
Foreign operations accounted for 54.6% of consolidated revenues
in the first half of 2008 compared with 43.8% in the same
period last year primarily due to new foreign terminals added
to the portfolio.
In the second quarter, consolidated net income reached P784
million, a 6% improvement year-on-year from P736 million.
Consolidated revenue amounted to P5.04 billion, or an increase
of 53% from P3.29 billion, despite what ICTSI called a “general
unease” over the impact of the US economic slowdown
on international trade and containerized cargo traffic.
Consolidated net income grew 11.3% to P1.495 billion for the
first half of the year from P1.343 billion for the same period
last year. The adoption of new accounting procedures, however,
dragged down consolidated net income by P111.9 million. Were
it not for the new procedure, consolidated net income would
have grown 54% to P1.607 billion from P1.045 billion in the
same period last year, ICTSI said.
Consolidated volume handled for the first six months of the
year grew 36.6% to 1.755 billion twenty-foot equivalent units
(TEUs) from 1.284 billion last year. The substantial increase
was attributed to new terminal operations contributing 321,949
TEUs while a double-digit volume growth in major terminals
like the Manila International Container Terminal (15.9%) and
Madagascar (44.2%) boosted volume growth to 36.6%.
Foreign subsidiaries now jointly accounted for 49.5% of consolidated
volume in the first half of 2008 compared with 41% in the
same period last year. January-to-June gross revenues from
foreign operations accounted for 54.6% of the consolidated
gross revenues from 43.8% in the same period last year.
MICT handled 744,875 TEUs in the first half of 2008, accounting
for 42.4% of the total consolidated volume of ICTSI. MICT’s
volume rose 15.9% over the same period last year.
Gross revenue at the Manila terminal increased at a higher
rate than volume at 21.1%, primarily due to non-container
and storage revenues, stevedoring tariff increase that became
effective on April 1, 2008, and the peso depreciation against
the US dollar.
Consolidated expenses during the period amounted to P7.20
billion, 76.7% higher than in the same period last year of
P4.07 billion due to the addition of the new subsidiaries.
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UPS tells SMEs: Look beyond the US
SMALL- and medium-scale enterprises (SMEs)
in the Philippines should look at the markets of Asia, Europe,
the Middle East and Latin America as an alternative to the
US, the country’s largest trading partner, while waiting
for the latter to recover.
“Trade growth prospects for Europe, the Middle East
and Latin America have increased 1%, indicating a slight shift
to these markets and possibly bigger opportunity for Asian
SMEs in the future,” said Tim Gohoc, managing director
of United Parcel Service (UPS), during the launch of the annual
UPS-commissioned Asia Business Monitor (ABM).
“The Philippines and Europe (trade) is the fastest growing
link for us,” Gohoc said. “This trade lane is
growing at a tremendous rate,” he added.
In Asia, Gohoc said volumes are expected to remain strong,
with China and India powering the growth.
The ABM survey revealed Philippine SMEs believe they are facing
tougher times ahead because of the peso appreciation, volatile
inflation rate and other domestic and international factors.
Still, there is much optimism about growth prospects this
year and next due to the robust business process outsourcing
sector.
Funding though continues to be a problem for 38% of SMEs across
Asia. In the Philippines, SMEs cited bureaucracy and red tape
as the primary hindrance to funding followed by lack of collateral.
SME leaders, meanwhile, are divided on the effect of the US
economic slowdown on their businesses. Some 48% feel the slowdown
will have no effect while 43% fear the opposite. Indonesia,
Hong Kong, Singapore and South Korean SMEs believe they will
be most affected by the current situation in the US.
Fewer SMEs see China as a threat to their business. In the
Philippines though 37% of SMEs, reeling from the flood of
China goods, view China as a threat.
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Coast Guard, PASG ink deal on anti-oil
smuggling
The Philippine Coast Guard (PCG) and the
Presidential Anti-Smuggling Group (PASG) recently signed an
agreement that will help avert oil smuggling in the high seas.
“A large volume of smuggling in the country is done
through water and most of this is oil smuggling,” said
lawyer Edmund Arugay, PASG director for operation, during
the signing with PCG commandant Wilfredo Tamayo at the PCG
headquarters.
“We welcome the opportunity to work with the Coast Guard.
This is what we lack. With the agreement, the Philippines
would be more committed to work hard against smuggling and
help us pursue our mandate,” Arugay said.
“The agreement would strengthen our capability unlike
before we had no capability to go after smuggling in the high
seas,” he added.
For his part, Tamayo said there is need to “intensify
patrol in the waters since we have the second-biggest archipelago
and the fourth longest coastline after Canada, Russia and
Indonesia.”
During the U-Ocean 25th anniversary celebrations:
L to R, Mrs. Sylvia Lina, Mr. Alberto Lina (Chairman), Mr.
Bimboy Arandia (Sales Director), Mr. Martin Garcia (Operations
& Logistics Director) and Mr. Mike Aquino (President).
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Unrelenting enhancement of services, commitment
to innovation keep U-Ocean ahead of the pack
INTERNATIONAL freight forwarder U-Ocean,
Inc is a believer in the adage that “where there’s
crisis, there’s opportunity”. So where other companies
fret over the continuing spike in fuel prices, the looming
recession in major markets and foreign exchange fluctuations,
U-Ocean is taking an optimistic view for 2009.
As it enters in 26th year in the industry, U-Ocean’s
key thrust is the further development and enhancement of logistics
services to get ahead of the competition, operations and logistics
director Martin P. Garcia told PortCalls.
In the face of increased competition and higher business
costs, U-Ocean is taking an aggressive stance by adopting
measures to maintain competitiveness most especially in the
area of customer service.
Part of these measures is the continuing investment in training
so the company can live up to demands of its customers and
standards of the industry.
For the past 25 years, U-Ocean has maintained a lean organization
that was always on the lookout for new product line innovations
to help keep rivalry at bay.
On top of those attributes, the company’s success may
be attributed to plain old hard work and determination of
employees and the all-out support of management.
“We commit ourselves to work toward complete customer
satisfaction and continuous technological advancement. We
provide excellent service — without borders,”
Garcia said.
Offerings wise, the company’s ability to handle all
kinds of shipments from less than containerload to full containerload
not to mention the provision of value-added services such
as warehousing, packing and crating, vendor management etc,
has kept it one step ahead of competitors.
U-Ocean is the marine forwarding division of U-Freight Philippines,
Inc, which until January 1978 was known as Sceptre International
Forwarder. From the time of its creation, U-Freight Philippines
enjoyed a continuous and sustained growth so that in 1983
the transformation of the ocean operation into a separate
entity became imperative.
Its vision is to become the premier global freight forwarding
and logistics company in the transportation industry by providing
the highest level of quality service to clients, promising
speed in the delivery of time-sensitive shipments, using the
best carriers and employing advanced logistics information
technology.
Wingspeed Shipping Corp celebrated its 15th anniversary with
a mass
at its Para?aque head office attended by management and staff.
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Aggressive marketing is Wingspeed Shipping’s
answer to downturn
WINGSPEED Shipping Corp (WSC) has no plans
of slowing down despite the sluggishness in the global economy.
In fact, the company will implement even more aggressive marketing
measures to stave off effects of the US economic debacle and
rising fuel costs, said WSC forwarding manager Aris SA Coching.
Instead of downsizing or rightsizing as some other companies
are doing, WSC will tackle head on all negative concerns as
it enters its 15th year in the business.
Proper planning will be its best recourse, said Coching. “We
are just simply planning or scheduling our pickup or delivery
for cargo consolidation. This way we are able to maximize
trips,” he explained.
“WSC also believes that with proper teamwork among management
and staff, the company would be able to remain strong or even
stronger like in the past 15 years,” Coching added.
This year, WSC’s key thrusts are ensuring continuous
customer satisfaction, further information technology training
for its staff, and updating of hardware and software. These
measures follow last year’s establishment of more local
offices in key cargo destinations, sealing deals with several
local and international firms for their logistics needs, and
updating of the website.
Wingspeed is an international ocean freight forwarder that
offers project cargo handling, customs clearance/brokerage,
dangerous cargo handling, warehousing, documentation, and
land transport. It also functions as a shipping agency with
branches in Cebu, Davao, Bataan, Laguna, Cavite and Clark.
Affiliates are Asialink Cargo Philippines, Mercury Freight
International Inc, KLine Air Services Phils Inc and Mercury
Freight Holdings Inc.
In addition, the company is a member of the World Cargo Alliance,
China Global Logistics Network, the Federation of International
Forwarder Association, and the Philippine International Seafreight
Forwarders Association.
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Big business opportunity, cost cuts seen
in shipping frozen produce
2GO, the logistics arm of the Aboitiz Transport System Corp.,
sees a P6-billion business opportunity if Mindanao hog growers
shift from shipping live cattle to processed and frozen meat,
2GO president and chief executive Sabin Aboitiz said.
The practice will also cut shipping and logistics costs, reduce
health and sanitation issues and put less pressure on port
infrastructure, he added.
“In order to bring down cost, they (live cattle) have
to be frozen. When you transship live cattle, because of the
distance, they get thin because they are not being fed,”
Aboitiz said.
“The freshness of the meat is also maintained if shipped
via cold chain facilities compared to the existing practice,”
Aboitiz added.
Two weeks ago, 2GO launched is cold chain business, marketed
heavily to small and medium businesses.
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Macapagal airport gets cargo, passenger
allocation under RP-Thai aviation deal
DIOSDADO Macapagal International Airport (DMIA) in the Clark
Freeport is now able to accept cargo shipments from Thailand
with the recent renewal of the Philippine-Thailand aviation
agreement. Based on the deal, 700 tons of cargo per week will
be allowed to go through Clark from the previous zero. In
addition, Clark got 8,600 passenger seats. Thailand will receive
reciprocal seat entitlements of 8,600 for the Clark route
bringing the total number of seat entitlements to 17,200 seats
weekly or 14 flights daily. Manila airports got 5,400 seats
from the previous 2,930 with cargo allocation of 300 metric
tons from more than 200 previously. Airports outside Clark
and Manila were given 2,110 seats, up from 850. Clark International
Airport Corporation president Victor Jose Luciano, a member
of the Philippine air panel, said the deal will boost passenger
and cargo throughput in Clark. He said the deal also had no
limitation on airline designation so that even non-flag carriers
can fly between Clark and Bangkok from multiple designations.
Traffic would also get a boost if local budget carrier Cebu
Pacific Air opened a hub in Clark. Cebu Pacific earlier said
it needed five destinations to be able to do so: Hong Kong,
Macau, Singapore, Taiwan and Thailand. With Thailand opening
up to Clark, all five destinations are now reachable from
the Northern Luzon gateway. Korea's Asiana Airlines just recently
started its Clark-US service every Tuesday, Thursday and Saturday.
The service connects with the carrier's international flights
to Los Angeles and New York every Tuesday and Thursday and
to Chicago every Saturday. Other airlines operating at the
DMIA includes Tiger Airways of Singapore via Clark-Singapore-Macau
routes, Air Asia of Malaysia via Clark-Kuala Lumpur and Clark-Kota
Kinabalu.
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P65M worth of smuggled goods from China
seized
THE Customs Intelligence and Investigation Service (CIIS)
of the Bureau of Customs (BOC) recently apprehended 56 containers
of assorted smuggled agricultural products from China and
Hong Kong, estimated to have a total market value of P65.14
million.
Twenty-five containers generally declared as food ingredients
and flour and consigned to Kaye International Trading were
found to contain 23,000 bags of unfortified flour from Hong
Kong and China.
Aside from violating the Mandatory Food Fortification section
(Section 6 and 10) of RA 8976 or the Philippine Food Fortification
Act of 2000, Kaye International Trading is no longer a registered
importer of the Bureau of Food and Drugs (BFAD).
“The CIIS has obtained certification from BFAD that
Kaye International Trading had closed its operations on December
19, 2000. They have no business importing flour or any foodstuff.
If sold in the market, this shipment can fetch over P18 million
and consumers will be cheated because this is unfortified
flour,” Customs commissioner Napoleon Morales said in
press briefing Friday.
The flour shipment will be auctioned off to BFAD-accredited
flour processors who will have to fortify the flour with Vitamin
A and iron before it can be sold to the public.
Meanwhile, three containers of apples and another three containers
of garlic from China were consigned to Rubills International
Inc. Both shipments, estimated to be worth P14.7 million,
had no import permits from the Bureau of Plant Industry.
Another shipment of four containers of onion worth P10.24
million imported from Hong Kong and consigned to Futek Enterprises
was misdeclared as garlic. It had no import permit for either
garlic or onion.
Also part of the hoard of smuggled goods were 19 containers
of Chinese lumber and Chinese cedar consigned to Wukong Singapore
Pte Ltd who denied ownership of the P19-million shipment.
“A modus operandi of smuggling operators is to use the
names of legitimate importers in the manifest, usually PEZA
locators to bring in their shipments to avoid payment of duties
and taxes. That’s why we put this shipment under alert
and confirmed the ownership with the consignee,” said
Morales.
Included in the inspection were two containers of frozen mackerel
worth P2.8 million consigned to Sea Quest International Freight
Forwarding and Shamrock Commercial and Integrated Multi Gold
Enterprises.
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International flights start at NAIA 3
CEBU Pacific Air’s (CEB) full transfer of all its local
and overseas operations to the Ninoy Aquino International
Airport Terminal 3 (NAIA 3) last Friday jump started international
operations at the new terminal.
Built for 13 million international passengers annually, the
terminal first opened its main hall last month — with
limited local flights of CEB and Philippine Airlines low-budget
brand PAL Express and Air Philippines — follo-wing almost
six years of delay because of contract controversies and safety.
CEB’s first international flight last Friday was from
Macau and its first departure, a Hong Kong-bound flight.
The carrier’s full transfer to NAIA 3 will bring 150
local and international flights, booked with about 19,000
passengers, daily. The move uproots 230 weekly flights to
Asian cities from NAIA 1 and roughly 80% of domestic operations
at the Manila Domestic Terminal.
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