Philippine cargo liner Lorenzo Shipping Corp. (LSC) recorded a 6.55% drop in freight revenue for 2013, mainly on lower volume of cargoes handled year-on-year.
LSC’s revenue declined to P1.86B from P2 billion in 2012, while net income plunged 83.61% to P10.32 million from P62.98 million in the previous year.
The listed carrier said the decline resulted from two of its vessels, M/V Lorcon Cagayan de Oro and M/V Lorcon Dumaguete, being off-hired for 59 days and 29 days, respectively, last year.
A vessel is off-hired when it is unable to provide services while under time charter due to such reasons as machinery breakdown. In this case the charterer is not required to pay hire money.
The carrier said it acquired 600 container vans last year worth P47.6 million under a finance lease agreement.
This year, LSC said it will maintain its service to 10 major ports in country – Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan, Zamboanga, Dumaguete, Bacolod, and Manila.
A newly acquired vessel, renamed Lorcon Bacolod, is scheduled for deployment in mid-2014. LSC said the ship’s deployment would “reduce maintenance costs and downtime.”
The addition of Lorcon Bacolod brings LSC’s fleet to eight vessels.
The company will also launch its e-commerce website within this year. Originally slated for 2013, the portal aims to provide more flexibility to customers through online booking.
LSC said it is also setting up “more trucking support” this year to meet an expected increase in volumes as “trucking is a critical component of our service.”
“This service component becomes more challenging given the current truck ban policy in the city of Manila,” LSC said.
“Together with its truckers, customers and consignees, the company is addressing these problems to minimize the negative effects of a limited window to move cargoes to and from the port of Manila,” the company added.
Beyond 2014, the domestic carrier plans to add ports of call, such as in Batangas and the Visayas. “These additional ports could be added internally or in collaboration with other service providers,” LSC said.
The domestic carrier was one of the members of the Philippine Liner Shipping Association that went on a tour of the Port of Batangas to assess its viability. –– Roumina M. Pablo
Photo from www.lorenzoshipping.com
