LOCAL cargo carrier Lorenzo Shipping Corp’s (LSC) net income plummeted 63% to P24.07 million in 2009 compared with the P65.12 million posted in 2008.
LSC attributed the drop mainly to the global economic crisis which slashed trade demand and partly to excess domestic capacity brought on by carriers’ bullish outlook before the crisis.
Total revenues reached P1.46 billion, down 9% from a year earlier due to lower container volume.
The cost of services dropped about 5% despite higher vessel charges such as stevedoring, lift-on, lift-off fees, and drydocking cost.
Last year, LSC spent P140 million for the drydocking of three vessels and purchased 464 container vans worth about P34 million. A net loss of P14 million was also booked following the sale of the MV Lorcon Luzon.
The company recently purchased a cellular vessel from Oak 1 Shipping, Inc of the Marshall Islands. With a capacity of 790 twenty-foot equivalent units (TEUs), the vessel has 150 reefer plugs and is classed by the American Bureau of Shipping. She has a maximum speed of 17 knots.
This year, LSC is sticking to its predictions of a flat growth with the global economic crisis not completely over. Since 2008, the Magsaysay-owned shipping firm’s target has been the same – the carriage of 70,000 to 80,000 TEUs each year.
LSC operates six vessels – theLorcon Cagayan de Oro, Lorcon Davao, Lorcon Visayas, Lorcon Cebu, Lorcon Manila and Lorcon Zamboanga – each with a capacity of 200 to 426 TEUs. They service Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan de Oro, Zamboanga, Dumaguete, and Bacolod.
