Shipping sector expects positive growth in 2013

CEBU, Philippines -  â€œ2012 is generally good for the shipping sector and 2013 brings new hope for a positive growth and much stronger economy, hence a much better year for the shipping industry.”

This is according to Visayan Association of Ferry Boat & Coastwise Shipowners Operators (VAFCSO) president Kenneth Sy of Trans-Asia Shipping Lines, Inc.

Sy cited that last year, the shipping industry continued to experience growth in cargo volume, stability of passenger base, replacement of aging vessels with newer ones and improvement of ship owners with the services they offer and render.  

He added that the sound economic policies of the current administration and the boom in the property segment also fuel the cargo volume development.

He said that the airline industry has also contributed to such growth since the former’s market share has somewhat stabilized due to the steady increase of airline’s fuel surcharge that paved the way for the riding public to “rediscover the pleasure of sailing.”

The months of January, March, April, May and December are still considered as the peak months for the sector.

Sy, however, pointed out that the lack of manpower due to brain drain has been the biggest challenge for local shipowners.

He then suggested government authorities to address such brain drain issue for the protection and guarantee of the efficient operations of the local shipping sector.

The Department of Transportation and Communications (DOTC), together with the Maritime Industry Authority (Marina), could also extend assistance to the industry by ensuring the steady supply of vessel crew.

Other struggles Sy cited include the high cost of fuel and vessel maintenance and the overcapacity due to the refleeting program undertaken by some players which is aggravated with the weakening demand.

“Shipping companies are also trying to bear the losses everytime suspension order will be meted by MARINA once one of the vessels has met an untoward incident,” he continued.

Despite the hurdles the shipping sector has to handle, Sy remained optimistic with the opportunities the Year of the Water Snake has to offer for the industry.

“The movement of cargoes and passengers are expected to increase hence there’s a positive outlook for the shipping sector this 2013,” he told The FREEMAN.

With the May 2013 elections in the offing, he said that the increase in government spending for infrastructures would contribute to the flowing movement of cargoes and passengers and to the generation of employment opportunities which will increase the purchasing power of Filipinos in return.

Sy further projected an increase of the country’s Gross Domestic Product (GDP) for this year to be attributed by the government expenditures and remittances of Overseas Filipino Workers abroad.

“There’s a possibility that the GDP growth in 2013 will be higher that its growth in 2012 since the government has shown its stability and foreign investments are continuously flowing into the country,” Sy concluded.  (FREEMAN)