THE Philippine Liner Shipping Association (PLSA) is seeking government support for the domestic shipping transport industry whose shipping revenues have dropped by as much as 80% due to the government-imposed enhanced community quarantine (ECQ).
“The PLSA wrote to the Department of Transportation and Department of Finance and requested for government assistance to support domestic shipping as a vital and strategic industry that serves the needs of the economy and the Filipino people,” the group said in a statement issued on Wednesday.”
The PLSA said shipping lines will not be able sustain their operations “without government assistance and support to have some relief on its loans, government fees and other operational costs.
The group noted that 60% of the customers of shipping lines that offer domestic shipping transport service have been affected by the Luzon-wide lockdown.
It said the lockdown caused the drop in shipping volumes of all shipping lines to below 50%. Revenues were also down by as much as 60% to 80%.
“The situation has become untenable for the domestic shipping operators, and with ECQ being considered to extend until mid-May,” PLSA said.
The group also cautioned that the collapse of the domestic shipping transport industry will lead to a “dangerous disruption” of the supply chain for essential goods, resulting in more job losses and significant increases in logistics costs and prices of basic commodities.
PLSA’s members, that are also the primary users of the Manila North Harbor, include 2Go Group, Inc.; Gothong Southern Shipping Lines, Inc.; Magsaysay Shipping and Logistics; Lorenzo Shipping Corp.; and NMC Container Lines Inc., among others.
“Manila remains the center of trade and the distribution hub where most essential goods are brought to/from the rest of the country. It is thus very important that there is no disruption to the strategic service that domestic shipping companies provide, to ensure that the vital needs of the people are met,” PLSA said. — Arjay L. Balinbin
