BUSINESS will continue to be slow in 2010 but will be so much better than last year, according to the Philippine Petroleum Sea Transport Association (Philpesta).
“While majority of our clients are expected to start recovering this year, the economy will remain unstable (and this) will make demand for oil go up and down,” Philpesta executive director Ernesto Pagayo told PortCalls.
Still, the fluctuation will be “minimal and tolerable” compared to last year.
“There is also no expected expansion in local tanker fleet as operators continue to wait for better times,” Pagayo added.
Philpesta members handle the bulk of the country’s annual oil shipments of 69 million to 75 million barrels (mmb), of which 82% is imported by Shell, Petron and Chevron.
Last year, Philpesta suffered a 5% dip in volume target. Rates were also below their pre-crisis levels.
This year, Philpesta members are looking for alternative markets due to stiffer competition from SMC Tanker and Lighterage. SMC Tanker is expected to handle oil shipments of Petron Corp, which is majority owned by San Miguel Corp, the mother firm of SMC Tanker.
