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Iris Lines temporarily suspends its international service
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The operation was negatively affected by external factors such as unsustainable freight rates and volatility in the shipping industry, the company said
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The suspension affects the Thailand-Philippines-Singapore service, which began only last February
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Iris Lines called for fair competition between Philippine-flagged vessels and international carriers
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It noted that while its appeal to government for fair competition has been “promised to be addressed… for the most part, (it has) yet to be constructively acted on”
Iris Lines, Inc. temporarily suspended its international service, saying it was negatively impacted by external factors such as unsustainable freight rates and volatility in the shipping industry.
The suspension affects the Thailand-Philippines-Singapore (SPX) service, which started only last February.
“Unfortunately, we have now reached a point where we have to suspend our international services temporarily, and with it, our dream of an active Philippine flag shipping line plying within the growing intra-Asia trade, at least until further notice,” Iris Line, the shipping arm of Royal Cargo, said in a statement.
“This regrettable interruption can be reversed again upon improved support of the line,” the shipping line added, noting it remains committed to customers as it “must shortly find a way to return to market.”
Iris Lines said although it has encountered significant financial losses over the last seven months, it continued to serve its Philippine customers.
The volatility in the shipping industry coupled with external factors such as unsustainable freight rates had substantial negative impact on the shipping line, it said.
Call for fair competition
“Our appeal to the Philippine government’s structures to empower our Philippine flag shipping to fairly compete with international carriers plying on the same trade lanes has been understood and promised to be addressed, but for the most part, yet to be constructively acted on,” Iris Lines said.
It noted it “strictly adhered to a non-destination charge policy and no container deposit” against most international carriers’ standard practice. The imposition and return of container deposit and the high rates of destination charges are a long-standing issue in the industry.
“Still, we could only carry the flag with comparable rules and regulations to our international competition,” Iris Lines pointed out.
Royal Cargo said Iris Lines’ main goal is to promote the participation of Philippine-owned carriers in the Association of Southeast Asian Nations trade lane and to increase the competitiveness of Philippine exporters and importers.
Royal Cargo Group chief executive officer Michael Raeuber earlier said their focus is on intra-Asia “because that is where the volume is” and their advocacy is to develop the intra-Asia container shipping sector.
In 2021, Royal Cargo recommended the amendment of Maritime Industry Authority (MARINA) Memorandum Circular No. OS-2019-02 to allow Philippine-registered vessels to concurrently engage in domestic and international trade.
MARINA MC OS-2019-02 provides the rules on the registration and documentation of ships for permanent conversion of trading from domestic to international voyages.
Iris Lines, formerly Iris Logistics, Inc., is engaged in domestic and international maritime and transport services. – Roumina Pablo
