::Industry News::

Archives | 2005 Q1 : January | February | March

January 3 | January 5 | January 10 | January 12 | January 15 |

January 19 | January 24 | January 26

*Solon: Fiscal crisis not over; forwarders battle ready for '05

*75 ports ISPS compliant: OTS

*19 airlines levy fuel surcharge

*AERO new agent for SAS Cargo in RP

*CTSI Logistics CEO is Employer of the Year

*Transmodal International takes Taipei

Solon: Fiscal crisis not over; forwarders battle ready for '05

THE country's fiscal crisis may have ebbed a little, but this does not mean the Philippines is off the hook from a financial jam in the future, said Rep. Jose Sarte Salceda, House chairman for Economic Affairs during the recent Prosperity Talks on the Fiscal Outlook for 2005 hosted by Sun Life Asset Management Company, Inc.

"The Philippines is definitely out of the bottom but we are still in the hole," Salceda stressed, noting the country has approximately P6 trillion in public debt as of September last year. He said the constitution is partly to blame because of its very restrictive nature relative to a globalizing market. "If the government wants to make policies that work, it must amend the present constitution," he pointed out.

Salceda said the national government badly needed a strong finish in 2004, including the realization of plans such as the takeover of the NAIA Terminal 3 and the reduction in pork barrel. These issues are still hanging to date. The solon warned exports may slow down this year, probably growing by only 10% vis-a-vis 13% in 2004. The foreign exchange outlook of P54-P56 to a dollar is also fundamentally undervalued, he noted.

The forwarding industry is taking the news of a possible protracted fiscal crisis in stride. Industry personnel informally surveyed by PortCalls say they are battle-ready for a tough 2005. In an earlier interview, Philippine International Seafreight Forwarders Association president Erich Lingad said business this year is expected to be tough but "there is nothing else we can do but hope for the better." He said the gloomy outlook may yet turn bright with the possible entry of tourists and foreign investors, especially after the tsunami that devastated South Asia.

Also with the elections behind us, Lingad hopes the national government will have time to focus on more important issues such as balancing the budget. Mercury Freight Group Marketing manager April Lim said she was not surprised to hear that the fiscal crisis is far from over. "It's not that we are not bothered by this news anymore. It's just that in our group, we see it as a matter of planning it all well," she explained.The company has allotted a bigger budget for 2005 and the management is optimistic this will be reached, if not, surpassed.

Bobit C. Aquino, vice president-external affairs of Transmodal International, said the fiscal crisis should serve as encouragement for businesses to perform better. While he acknowledges this will have a dampening effect on business, current indicators point to the shipping industry putting in a positive performance in 2005."We are improving compared with the last two years. We are beginning to gain ground, particularly in the intra-Asian market," he said.

The growth in the number of freight forwarding companies in the country and the employment they bring are also strong indications that the forwarding business is doing well. - M.R. Mesias.

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75 ISPS-COMPLIANT PORTS

AS of January 18, 2005, 75 ports in the country servicing ships engaged in international trade have complied with the International Ship and Port Facility Security (ISPS) code, Office for Transportation Security (OTS) undersecretary Cecilio R. Penilla said in a report to Transportation Secretary Leandro R. Mendoza.

The 75 (see list below) were issued a Statement of Compliance of a Port Facility (SCPF) valid for a maximum of two years. Penilla said the OTS Verification Teams are still conducting assessment and onsite verification on other international ports in the country. "There are still ports that submitted to OTS their Port Facility Security Assessment (PFSAs) and Port Facility Security Plans (PFSPs) that are being verified and assessed by the OTS teams," he noted.

Penilla reiterated the OTS will only issue a statement of compliance to ports whose PFSA and PFSP were assessed, reviewed and verified and subsequently found to be ISPS complaint.
Meanwhile, 169 of the 170 Philippine-registered ships engaged in international trade have been issued the International Ship Security Certficates.

Assessment and verification of port security assessments and plans are being conducted by OTS Teams comprising experts from the OTS, Philippine Ports Authority, Maritime Industry Authority and Philippine Coast Guard.

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19 airlines levy fuel surcharge

A total of 19 international airline companies increased their rates since last year following incorporation of the fuel surcharge, according to the Civil Aeronautics Board (CAB). Many airlines petitioned for the imposition of a fuel surcharge following record increases in the price of aviation fuel, which now averages $61.05 per barrel. Fuel accounts for 38% of an airline's cost per passenger, its second-highest operating expense next to labor.

CAB is still deliberating on Japan Airlines' petition to impose fuel surcharge on passenger tickets of $10 per sector on international flights. The company earlier applied for a fare increase but this was denied. Air Macau has a pending application for a cargo fuel surcharge of $30 per kilogram of actual weight based on the fuel price index.

Domestic carrier Interisland Airlines is applying for fuel surcharge of P300 per passenger for the Manila-Caticlan route and P100 per passenger for Manila-Subic sector. Last year, CAB approved the petitions of Gulf Air ($5 per sector on international flights, effective September 22, 2004); Emirates Air ($10 per sector on international flights, effective September 15, 2004); and Thai Airways International Co. Ltd. ($7 per sector for regional/Middle East and $15 on international including Australia and New Zealand).

The petition of five others were also approved last year: KLM Dutch Airlines ($10 per sector, effective August 5); Silk Air ($5 per sector on international flights, effective August 18); Air Niugini ($10.50 per sector, effective August 30); Korean Air ($7 per sector, effective September 9); and Eva Airways ($6.40 per sector on international flights, effective July 12). In addition, SilkAir was granted $7 per sector on South East Asian routes such as Indonesia, Malaysia, Thailand, Cambodia and Yangon and $12 per sector on flights to Macau, China and India.

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AERO new agent for SAS Cargo in RP

Airline Exchange Resources Online, Inc. (AERO) was recently appointed Philippine agent of Scandinavian Airlines System (SAS) Cargo. AERO president Darryl Modelo said the development augurs well for the airfreight business in the Philippines as this goes against the trend of less and less European carriers operating in the country.

SAS Cargo manager for Thailand and the Philippines Teerasak Kachipornwadee believes the airline's provision of efficient logistics solutions to local enterprises will help spur business growth.

SAS Cargo is the leading air cargo carrier to, from and within Scandinavia. It deploys approximately 1,000 passenger and cargo flights to over a hundred destinations worldwide everyday."Our superior frequency, comprehensive network, extensive capacity and outstanding reliability ensure your shipments arrive as agreed. That is airfreight the Scandinavian way," Kachipornwadee noted.

In the Philippines, SAS Cargo offers Priority Cargo, Cargo Cool, General Cargo and freighter operations. AERO said SAS Cargo will be bringing all its services in the country in the coming months, including Cargo XL Express, Cargo Valuable and Cargo Extra Care.SAS Cargo is a member of WOW Alliance, giving customers the advantage of time-definite service to another 70 destinations in the world. AERO is also the general sales agent of Lufthansa Cargo in the Philippines.

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CTSI Logistics CEO is Employer of the Year

CTSI LOGISTICS CEO Jerry Tan was chosen to be 2004's Employer of the Year by the Society of Human Resource Manage ment (SHRM), Saipan Chapter. The awarding took place last December 16 at Charley's Bar in the Pacific Islands Club of Saipan where he gave an acceptance speech, acknowledging the importance of good human resources (HR) work and the performance of his Corporate HR team.

"I could not have won the award on my own and I must especially give a lot of credit to the Corporate Human Resource for implementing many good HR programs and systems at all stations," he said. Among the many HR programs of Tan, the most significant is his "We Care" philosophy. We Care promotes equality and respect among team members (not employees or staff); it is best summed up with the catchphrase "Our business is people!" Tan vows to continue leading CTSI Logistics to more growth by nurturing his team members. "I can assure you I will continue to give my support to do more for our people as I know there is still a lot of work ahead of us."

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Transmodal International takes Taipei

Key officials of Transmodal International, led by chairman Irene M. Manguiat, recently trooped to Taipei for a business meeting. Photo shows (L to R) Monet G. Cuenca, VP Internal Affairs; Denirene Mendoza, VP Finance; Manguiat; Bobbit C. Aquino, VP -External Affairs; Digzylou Mendoza, VP- External Admin/Promotions; Barbie B.Rivadeneira-VP-Foreign Relations; and Elma Simbahan-VP Marketing/Sales.

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Archives | 2005 Q1 : January | February | March

January 3 | January 5 | January 10 | January 12 | January 15 |

January 19 | January 24 | January 26

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