CMA CGM Group. Photo from the company’ websiite
French shipping company CMA CGM Group has opened its Manila-Cebu-Cagayan de Oro route to take advantage of the robust trading activities that have been driving the demand for shipping.
Bo Wegener, CMA CGM CEO for Asia Pacific, said in an event in Pasay on Friday that the Philippine-flagged vessel “CNC Pilipinas” has been deployed to operate its Luzon Visayas Mindanao Express shipping service.
The ship, which has 1,037 twenty-foot equivalent units (TEU) in capacity, is set to make weekly sail.
This is the first fully foreign-owned domestic shipping service in the country. It aims to reduce transit times and decrease logistics costs as a result.
“Asia contributes significantly to our growth globally, and the establishment of CNC’s domestic shipping service in the Philippines is an important milestone for us as a business as we continue to develop our expertise and strength in our intra-Asia services,” Wegener said.
Wegener expressed optimism over shipping demand in the country given its archipelagic nature, which means sea-based transport plays a crucial role in mobility.
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In addition, the official is also upbeat on the economic recovery that boosts consumption and production.
In fact, the Philippine Ports Authority projected cargo shipments to reach 285 million metric tons (MT) this year, showing 5-percent growth from 271.97 million MT last year. This projection indicates a continuous growth for the domestic sea terminals whose cargo volume has already surpassed the pre-pandemic level of 265.88 million MT.
In the first half, cargo throughput improved by 6 percent to 138.29 million MT from 130.08 million MT a year ago.
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Container traffic grew by nearly 2 percent to 3.73 million TEUs in the first half from 3.67 million TEUs the previous year.
The demand for logistics services—which include shipping—has been on the rise due to growing e-commerce sector. A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.
“We are very excited that [CMA CGM] has chosen to launch its first domestic service in the Philippines. It is a testament to the Philippines’ commitment to fostering a competitive and dynamic maritime industry that will continue to attract international investments,” Transportation Undersecretary for Maritime Sector Elmer Sarmiento said.