The country’s largest shipping companies are seeking the government’s support as the coronavirus pandemic sends shockwaves through the economy, threatening some 6,000 industry jobs.
Matthew Parco, president of Philippine Liner Shipping Association (PLSA), said their members are bleeding cash as the Luzon lockdown caused revenues to fall up to 80 percent while vessels are forced to operate with less than half their usual loads.
“It’s a slow death,” Parco told the Inquirer in an interview on Thursday.
He said they have written the Department of Finance and the Department of Transportation for help in accessing cheap lines of credit and for a waiver of port charges, possibly through the end of 2020.
The shipping industry remains crucial given the Philippines is an archipelago.
Parco noted that the lockdown is the biggest challenge due to the importance of Metro Manila and Luzon to the Philippine economy.
PLSA estimates that over 60 percent of total shipping volume of food, medicine, clothing and other goods are shipped from Manila to the Visayas and Mindanao.
The Luzon lockdown, however, has shuttered all businesses except those deemed essential.
Parco said their current situation was not as dire as other sectors facing bankruptcy, but he noted this would depend on the length of the Luzon enhanced community quarantine and how soon businesses and consumer spending can recover.
“I would say if we do not get help it’s a downward spiral,” Parco said.
PLSA’s members account for about 80 percent of the volume at Manila North Habor. Their members include 2GO Group Inc., Gothong Southern Shipping Lines Inc., Magsaysay Shipping and Logistics, Lorenzo Shipping Corp. and NMC Container Lines Inc.
Other members are Meridian Cargo Container Shipping, Moreta Shipping Lines Inc., Oceanic Container Lines Inc., Philippine Span Asia Carrier Corp., Solid Shipping Lines Inc. and Chelsea Logistics and Infrastructure Holding Corp.