This year, Philippine cargo carriers expect volume to grow 2% at best and for revenue to be flat.
Member lines of the Philippine Liner Shipping Association (PLSA) said the slow economy, continued rise in fuel prices, and recent calamities that have hit the country will crimp growth for most business sectors.
“Business sectors in the country are not expected to grow significantly… they will only coast along,” a PLSA official told PortCalls, adding expansion programs for the shipping sector continue to be on hold.
The introduction of larger-capacity replacement vessels are also seen to put more pressure on carriers.
In order to recover added costs related to fuel and other operational expenses, carriers are eyeing an increase in rates whether through a form of fuel surcharge or a general rate increase hike.
Last year, local shipping lines posted a modest improvement in volume and revenue propelled by strong movement of cargoes, mostly northbound. The volume of southbound cargo or those coming from Luzon were flat.
PLSA members include Negros Navigation, Solid Shipping Lines, NMC Container Lines, Oceanic Shipping Lines, Lorenzo Shipping Corp, and Philippine Span Asia Carriers Corp.
Photo from http://www.lorenzoshipping.
