Strong trade, travel drive Chelsea back to black

MANILA, Philippines — The logistics venture of Davao-based businessman Dennis Uy has returned to profit at last, as the company gained from resurgent trade and travel volumes across the archipelago.

Chelsea Logistics and Infrastructure Holdings Corp. yesterday reported that it ended 2024 with a profit of P177 million, finally recovering from consecutive years of financial bleeding.

Chelsea managed to overturn its net loss of P1.14 billion in 2023 and also exceed by 24 percent its profit during its listing year in 2017.

Uy’s logistics business posted a 14-percent revenue growth in 2024, booking a record P8 billion that surpassed its pre-pandemic high.

Chelsea attributed this to higher gains across the business, particularly from the passage and freight segments.

The company’s passage business jumped by 20 percent, while its freight increased by nine percent. The company benefitted from higher passenger and cargo volumes, driven by the growth of trade and travel through the seas.

Chelsea also pursued a number of cost-cutting measures by maximizing the capacity of its vessels and deploying them in strategic ports.

Chelsea president and CEO Chryss Alfonsus Damuy said the company also shifted several of its transactions online to minimize friction costs.

Damuy said Chelsea would capitalize on its digital transition to expand its market, foster collaboration and improve services.

Chelsea chief financial officer Darlene Binay also committed to investors that the company is on its way to stable footing as shown in its recovery to positive territory in 2024.

Binay said Chelsea would keep on pursuing measures that bring in revenue and cut spending.

Based on data from the Philippine Ports Authority, cargo throughput in ports rose by six percent to 289.52 million metric tons last year from 274.46 million MT in 2023.

Likewise, domestic container traffic inched up by four percent to 7.83 million twenty-foot equivalent units on the influx of imported goods.

Passenger volume in ports also rose by seven percent to 78.74 million, as provinces were able to handle more travelers with larger terminals in place.

Although shippers like Chelsea are expected to sustain their growth this year, they are bracing for the possible impact of Washington’s imposition of higher tariffs against Manila.