Following appeals from local exporters for more
vessel space, the first ever Philippine-flag container ship is set to embark on
its maiden international voyage, carrying export containers to the United
States.
Iris Logistics Inc., a subsidiary of logistics
company Royal Cargo, Inc., announced it will hold a virtual maiden voyage
ceremony on September 20 to launch its container ship M/V Iris Paoay as she
sails to the US.
The news is welcome development for struggling
exporters, who in a July 2021 survey conducted by the Philippine Exporters
Confederation, Inc. (PHILEXPORT) said the lack of space on international
shipping lines is their top shipping challenge today.
In preparation for the container ship’s landmark
US voyage, the Bureau of Customs Port of Manila (BOC POM) met virtually with
Iris Logistics officials on September 14, 2021.
During the meeting, Iris Logistics requested
assistance from the agency for the seamless interface between BOC POM and M/V
Iris Paoay, which has a carrying capacity of 1,118 twenty-foot equivalent units
of containers.
District Collector Michael Angelo Vargas assured
the smooth passage of the containerized vessel that will be carrying export-
and import-laden containers to and from the US, and invited the cargo company
for a walk-through to become familiarized with the bureau’s processes, BOC said
in a release.
“The Port of Manila is ready to hit the ground
running. Likewise this would be a big boost for BOC Port of Manila to process
goods coming from the USA as currently the bulk of goods that come in POM are
from China and the ASEAN region,” Vargas added.
In a related development, Davao-based Reefer
Express Line Filipinas, Inc. also announced the start of a monthly service this
month from Mindanao to the US to help manufacturers facing global shipping
problems.
According to an email provided to Dr. Enrico
Basilio, Chairman of the Networking Committee on Transportation and Logistics
(NCTL) of the Export Development Council, one of the two ships, named M/V Cool
Spirit, will ply the General Santos City-US route, as disclosed in the email by
Felix Ishizuka of Reefer Express Line. It has a capacity of about 560 TEUs or
5,600 pallets position or 600 TEUs ondeck capacity. It is set to arrive at the
Port of Philadelphia on September 30.
Meanwhile, another of its vessel can carry 700
TEUs capacity and will start sail to the US West Coast from Davao through
Thailand on October 5.
Basilio shared the information with PHILEXPORT
which had been working with the NCTL and Royal Cargo to respond to calls from
shippers for relief from the capacity squeeze.
As part of the intervention, the three groups
agreed to propose to government to allow domestic shipping lines to operate
beyond domestic waters. Royal Cargo agreed to help by providing its ships to
transport export cargoes to their ports of destination.
For the longer term, they are proposing the
following:
·
Passage of the Philippine Ship Registry Act which would enable
Philippine flag vessels to go international
·
Removal of distinction between "coastwise license" and
"international license" for Philippine-flagged ships
·
Securing of government imports through FOB (freight costs are
separate from the cargo value of imports) to enable Philippine-flagged ships to
participate in the carriage of government cargo
·
Modification and amendment of MARINA Memorandum Circular No.
OS-2019-02 to allow Philippine-registered vessels to concurrently be engaged in
domestic and international trade
Issues with supply chain disruptions, not just
in the Philippines but around the world, have been intensifying, the result of
factors such as a surge in global demand, the early resumption of manufacturing
in China, port congestion, and the reduction of capacity by carriers in
response to lockdowns.
This has led to local shippers being unable to
book slots on international container liners and having to face record-high
freight rates, which are causing shipment delays and mounting losses for
exporters and importers.
PHILEXPORT president Sergio Ortiz-Luis, Jr. earlier
said that while these are global issues beyond anyone’s control, the government
and private sector must still work closely together to effectively address
them.
September 27, 2021
