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PHL shipping companies start increasing freight rates

Trucks enter a port in Manila. — PHILIPPINE STAR/EDD GUMBAN

by Arjay L. Balinbin, Senior Reporter

Some shipping companies have started hiking their freight fees, the Philippine Liner Shipping Association (PLSA) said, noting that the industry is currently in survival mode due to the rising fuel prices. 

“As far as I know, rates of the ROROs (roll-on, roll-off vessels)  in Batangas have gone up. In other provinces, I know that they are putting increases also,” PLSA President Mark Matthew F. Parco told BusinessWorld in a phone interview on Monday.  

The average increase in freight fees, according to Mr. Parco, is 25%.  

“That’s the average based on the increase in their operating costs… There is no single rate that applies to all. They have different rate levels and structures,” he added. 

Chelsea Logistics and Infrastructure Holdings Corp. President and Chief Executive Officer Chryss Alfonsus V. Damuy said in a phone message that they are “sending notices” to their clients.  

Maritime Industry Authority (Marina) Administrator Robert A. Empedrad said the industry is deregulated.  

Under Republic Act No. 9295, domestic ship operators are authorized to set their own domestic shipping rates, provided that “effective competition is fostered and public interest is served.” 

The agency monitors all shipping operations and exercise regulatory intervention where it is established that “public interest needs to be protected and safeguarded.” 

Mr. Empedrad said that Marina will “evaluate the validity” of the increases.  

“But eventually, we cannot control them,” he added. 

Mr. Parco said the domestic shipping companies have been losing money and that it is “a matter of survival” now. 

“Cumulatively, it was a P600-million loss for all the lines in 2019, which should reflect the state of the industry. In 2020, it was a P1.5-billion loss. For 2021, I expect it will still be negative,” he noted. 

“But they were not increasing rates because of Marina’s request” in consideration of the coronavirus pandemic. 

The cost of operations has increased by around 25%. “I’m just talking about the increase in fuel prices. I’m not even talking about the increase in trucking, spare parts, and dry-docking costs,” Mr. Parco said. 

The prices of gasoline, diesel, and kerosene are expected to fall by P5.45, P11.45, and P8.55 per liter on Tuesday, after 11 straight weeks of increases. Last week, fuel retailers raised gasoline and diesel prices by P7.10 and P13.15 per liter, respectively. 

Fuel accounts for around 40 to 50% of shipping companies’ operating costs, Mr. Parco said. “But then again, shipping lines have different cost structures.” 

On whether the higher freight rates will be passed on to end consumers, he said: “There will be a pass-on; but again, because shipping [rates] went up doesn’t mean that all the increases are due to shipping.” 

“Shipping is just from the port to the port. It’s just part of the total logistics. From the farm to the port, there are a lot of things that happen there: there’s trucking, there’s consolidation, distributors — they put their markups,” he added. 

“So when we look at that portion — just from port to port, which we are responsible for, it’s just around 5% of the total price of a [product].”
The industry has been seeking fuel subsidies, removal of excise tax on oil, and reduction in charges imposed by regulating agencies to soften the impact of the fuel prices on shipping costs
Philippine Interisland Shipping Association Executive Director Pedro G. Aguilar said during a recent House committee hearing on fuel crisis that the impact of the excise tax on cargo ships is an increase of P400 to P500 per 20-foot container depending on the fuel consumption of a vessel and the port of destination. 

Universal Music label acquires ape NFT to lead virtual music group

THE CHARACTER, named Manager Noët All, will become the manager of KINGSHIP, a group consisting of Bored Ape & Mutant Ape NFTs. — UNIVERSALMUSIC.COM

THE UNIVERSAL Music Group is capitalizing on the popularity of non-fungible tokens by acquiring one of the cartoon apes that have taken the world of digital collectibles by storm to lead an entirely virtual music group.

On Friday, Universal’s 10:22PM label said it paid $360,817 to purchase Bored Ape #5537 —  a female character now known as Manager Noët All, to lead the group it founded in November called Kingship.

Kingship, which exists solely in digital form, will have its own website and presence on messaging platform Discord, and will eventually produce new music and give virtual performances in the metaverse, a loose term commonly used to describe a place where the physical and digital worlds meet. Like Manager Noët All, all the band members are non-fungible tokens (NFTs) — three Bored Apes and a Mutant Ape, on loan from collector Jim McNelis.

“For it to become part of culture, I think that would be an amazing thing,” said Mr. McNelis.

The idea of creating virtual bands from digital characters is not a new one. Gorillaz, a virtual band formed in 1998 by musician Damon Albarn and comic artist Jamie Hewlett, released seven albums on Warner Music Group’s Parlophone label. One of Japan’s pop stars, Hatsune Miku, is a hologram.

For Kingship, Universal’s 10:22PM label sought out one of the best-known NFT collections on the blockchain, the Bored Ape Yacht Club, comprised of 10,000 anthropomorphic apes, each with distinct clothing, fur, and expressions.

Bored Apes have become a status symbol for celebrities, with investors including The Tonight Show host Jimmy Fallon, pop star Justin Bieber, NBA superstar Steph Curry and billionaire investor Mark Cuban.

For Universal Music, Kingship presents an opportunity to learn how to create characters and stories that generate excitement in the metaverse.

“It’s about understanding the ethos of the space,” said 10:22PM founder Celine Joshua, whose label serves as a laboratory for experimenting with new forms of entertainment. — Reuters

Business groups to employees: Return to workplace 

VARIOUS business groups and company executives have called on employees to return to the workplace, saying that doing so will help the country’s economic recovery.

In a joint statement released on Monday, the groups along with business heads said the economy’s recovery starts with the presence of employees in business centers as more relaxed restrictions are implemented and coronavirus disease 2019 (COVID-19) cases continue to drop.

“We now look forward to heightened business activity which will benefit the entire nation and spur its return to economic wellness. The path to recovery, we aver, begins with the presence in the business and commercial centers of our country’s workers,” they said.

“As employees return to the business centers, it is also hoped that confidence nationwide will improve and help restore industries displaced by the pandemic,” they added.

Signatories to the joint statement include Ayala Land, Inc. President and Chief Executive Officer Bernard Vincent O. Dy; Chamber of Real Estate and Builders’ Association, Inc. National President Noel M. Cariño; Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. President Henry Lim Bon Liong; Financial Executives Institute of the Philippines President Michael Arcatomy H. Guarin; Presidential Adviser for Entrepreneurship Jose Ma. A. Concepcion III; Management Association of the Philippines President Alfredo E. Pascual; Megaworld Corp. Chief Strategy Officer Kevin L. Tan; Philippine Constructors Association President Wilfredo L. Decena; Philippine Retailers Association President Rosemarie B. Ong; Philippine Chamber of Commerce and Industry President George T. Barcelon; Resto PH President Eric Teng; Robinsons Land Corp. President Frederick D. Go; and SM Prime Holdings, Inc. President Jeffrey C. Lim.

The business groups and executives also highlighted that all establishments can already operate on-site at 100% capacity in areas covered by Alert Level 1. Recently, Malacañang announced that Metro Manila and 47 other areas will be placed under Alert Level 1 from March 16 to 31.

“We are pleased and relieved that with the vaccination rate in Metro Manila now at 70.4% and nationwide at 57.1% and with new COVID-19 cases at a very low 598 cases nationwide as of March 17, we now enjoy our current Alert Level 1. This allows free interzonal and intrazonal travel regardless of age and comorbidities,” they said.

“Two years of the COVID-19 pandemic have drastically curtailed economic activity in our country’s business districts and other commercial centers leading to a -9.6% gross domestic product (GDP) contraction in 2020. Consequently, the revival of business activity in general, and key economic centers in particular, are now viewed as a key milestone towards recovery,” they said.

The business groups and executives also urged the public to go out of their homes while still following minimum public health standards.

“Following the boost in vaccination rates in November last year, we saw the increase of mall foot traffic to as high as 63% of its pre-COVID figure and fast-food traffic count at 78% of its 2019 numbers. Metro Rail Transit (MRT) ridership today is at 243,845 or 69% of its 2019 figure over the same period,” they said.

“Economic momentum has been established and we are now within easier reach of the prosperity we all enjoyed in 2019. Fully occupied business districts and commercial centers indeed represent a welcome and collective milestone for the country,” they added.

One of the sectors that will be affected by the push for on-site work is registered information technology and business process outsourcing (IT-BPO) companies.

Under Fiscal Incentives Review Board (FIRB) Resolution 19-21, IT-BPO firms located inside economic zones are permitted to have a work-from-home (WFH) arrangement of up to 90% of its total workforce until the end of March while still enjoying tax incentives.

However, the FIRB denied the proposal of the Philippine Economic Zone Authority (PEZA) to extend the WFH arrangement of IT-BPO firms without losing fiscal incentives until Sept. 12, citing the country’s high vaccination rates. PEZA has been pushing for the extension of the WFH arrangement for registered IT-BPO firms due to high fuel prices. — Revin Mikhael D. Ochave

New series tackles self-love and worth

A STILL from the series Bola-Bola

A STORY about a young woman who cooks her way into acceptance, self-love, and romance premieres on iWantTFC on March 26.

The six-episode series Bola Bola is based on a romance novel by Anna Geronga of the same title. It follows Thea, a 220-pound high school student who loves food and cooking. Over the course of the series, Thea will experience the joys and pains of first love as she learns the importance of self-love.

Francine Diaz, who played Cassandra Mondragon in Kadenang Ginto (2018), takes on the lead role of Thea.

Ms. Diaz said that what she learned from working on the series is to give attention to those who love and appreciate you. “Huwag mong ipilit yung sarili mo sa taong hindi ka mahal… Doon mo makikita na hindi mo mahal yung sarili mo (Do not force yourself on someone who does not love you… That’s how you’ll know that you do not love yourself),” Ms. Diaz said at an online of press conference on March 17.

In the series Thea asks her crush Lucas (played by Akira Morishita of boy group BGYO) to be her date for the ball. She decides to put her cooking skills to use by making it her mission to cook delicious meals for him. Disappointed when Lucas tells her that he doesn’t date “big girls,” Thea decides to lose weight. On her grueling road to a healthier lifestyle, she seeks the help of her best friend Julian (KD Estrada) and fitness trainer Josh (Ashton Salvador).

“While writing, I was reminiscing not only my friends, but also the way high school was for me and the way my childhood went,” the novel’s writer Ms. Geronga said during an online press conference on March 20.

The series is directed by JP Habac (I’m Drunk, I Love You) and produced by iWantTFC, Dreamscape Entertainment, and KreativDen.

The series also stars Analain Salvador, Danica Ontengco, Vance Larena, J-Mee Katanyag, and Arlene Muhlach.

“Insecurities will always be there. The biggest lesson I want to impart is to learn to love yourself and learn also to not deprive yourself,” Ms. Geronga said, adding that a person must not deprive themselves of things they enjoy and deserve such as food, experiences, and love.

Bola Bola will start streaming on the iWantTFC app (iOS and Android) and website (iwanttfc.com) on March 26. New episodes will premiere on March 27, April 2, 3, 9, and 10. —  Michelle Anne P. Soliman

First Gen logs P12.4-B attributable recurring net income

FIRST GEN Corp. ended last year with “flat earnings” of P12.4 billion attributable to equity holders, with more expensive fuel prices offsetting higher electricity sales as power demand recovered to pre-pandemic levels, the company said on Monday.

“First Gen generated higher revenues in 2021 as we saw power demand recover to pre-pandemic levels. Unfortunately, revenue growth was also an effect of higher fuel prices experienced all over the world and the supply restrictions in the grid that reflected in high spot market prices,” First Gen President and Chief Operating Officer Francis Giles B. Puno said in a statement.

“Our gas-fired plants necessarily ran on liquid fuel to ensure adequate supply for the grid. We are working to address gas supply uncertainty and are confident this will be addressed once our LNG (liquefied natural gas) import terminal operates this year,” he added.

The company’s natural gas platform registered 8% more in recurring earnings last year to P9.7 billion from P9.2 billion in 2020.

“The older natural gas-fired plants, the 1,000-megawatt (MW) Santa Rita and the 500-MW San Lorenzo [power plants], reaped the benefits of lower income tax rates under the CREATE Law and lower interest expenses from regular debt service payments,” the company said, referring to Republic Act No. 11534.

The benefits, however, were partially offset by lower operating income from the 420-MW San Gabriel power plant caused by outages and higher replacement power, the company said.

First Gen said that while its 97-megawatt Avion power plant “had its share of plant damage issues in 2021, it still benefitted from high electricity sales in the early part of the year as it supplied the grid with supplemental power during constraint periods.”

Meanwhile, Avion plant’s Unit 2 “was discovered to have incurred a damage in its gas compressor last August after a routine inspection. The unit was quickly replaced and restored to full commercial operation by late October.”

In December, Avion’s Unit 1 was found to have incurred damage. It was brought back to operations by February 2022.

“From an attributable net income to parent of P9.3 billion in 2020, the natural gas platform increased to P9.8 billion (US$199 million) for 2021,” it detailed.

Energy Development Corp. (EDC), meanwhile, shared a P4 billion recurring attributable earnings generated from its geothermal, wind, and solar assets. This is 8% lower than 2020’s recurring income of P4.5 billion.

Although EDC had generating higher revenues, it incurred higher power plant and steam field maintenance expenses last year as it made up for deferred activities from 2020.

“These were partly offset by lower interest expenses and income taxes. The renewable energy company’s attributable net income to parent of P4.3 billion for 2021 was also 18% lower due to extraordinary income from the collection of insurance claims in 2020,” it said.

First Gen’s hydro platform’s recurring earnings contribution climbed to P180 million in 2021 from P70 million in the previous year.

“The 132.8-MW Pantabangan-Masiway power plants generated higher revenues as the commencement of its contract with Meralco (Manila Electric Co.) were augmented by merchant sales. The increase was slightly offset by higher expenses due to replacement power costs,” the company said.

The Lopez-led company recorded consolidated revenues of P106 billion from electricity sales, 18% higher than the P91 billion in the previous year. This consists of 60% natural gas revenues; 35% EDC’s geothermal, wind, and solar revenues; and 5% hydro plant revenues.

First Gen shares at the local bourse dropped a peso or 3.85% to close at P25 apiece on Monday. — Marielle C. Lucenio

Is there such a thing as the perfect alarm tone?

ANNA TARAZEVICH/ PEXELS

We think so (and this is what it might sound like)

WITH the return to office work — and no longer being able to roll out of bed and straight into a Zoom meeting — many of us will be waking up earlier to beat the morning rush. So it’s important to ensure we’re on top of our alarm game.

But what type of alarm provides peak alertness upon waking? Pythagoras posited this same question in around 500 BCE. He believed specific songs — melodies that roused the energies — had the ability to counteract the drowsiness waking may bring.

And he appears to have had a point. Research has now shown certain alarm sounds can indeed enhance our alertness upon waking.

In particular, alarms that have the qualities of “tunefulness” (think of the song “ABC” by The Jackson 5) have melodies that energize the listener, and are great for effective waking.

But to understand why this is the case, we first need to understand how our brains respond to complex stimuli when moving out of the sleep state.

Waking up groggy never feels right. And how we wake up can not only affect our mood and the day’s outlook, but also our cognition and mental performance.

In some instances, grogginess after waking has the potential to be dangerous several hours later, by reducing our performance in critical decision-making (such as in health settings, emergency responses, security, or while driving).

This cognitive state of reduced alertness is referred to as “sleep inertia.” It’s a growing concern as it can have serious consequences while performing high-risk tasks, including driving.

Transitioning from sleep to alertness does not follow an on/off switch-like system, as brain imaging techniques have revealed.

Waking relies on complex biological processes, including increased blood flow allocation to the brain. Studies show the brain regions important for alert performance (the prefrontal cortical regions) take longer to “start-up” than other areas (such as the basal ganglia) which are important for arousal. This means you can be awake, but not quite with it.

Research has also shown blood flow activity within the brain to be diminished after waking, in comparison to the pre-sleep state. Thus, alert wakefulness may in part require mechanisms that encourage a redistribution of blood flow to the brain — something certain types of sound and music can do.

Another factor that influences alertness upon waking is the stage of sleep at the time. You’re less likely to feel groggy if you wake up from a light sleep, compared to a deeper slow-wave or REM sleep.

A light sleep stage is characterized by Theta wave frequencies (as measured from the brain’s electrical activity) and can be associated with feeling drowsy. In this sleep stage, arousal from external stimuli such as an alarm can quickly draw a person out of sleep.

Conversely, deep sleep or slow-wave sleep consists of Delta wave frequencies, which are associated with unconsciousness. This is the more challenging sleep stage to fully wake up from.

Alarm effectiveness also depends on age. Young adults aged 18 to 25 need louder alarms than older people, and preteens need an even greater threshold than young adults. You may require an alarm as much as 20 decibels louder at 18 than you would at 80.

But when it comes to choosing an alarm, what exactly is the best choice? A growing body of evidence suggests different alarm sounds can positively influence human performance after waking.

Our systematic review published in 2020 showed temporal frequencies (the pitch of the sound as measured in Hertz) around 500 Hz are better at arousing young children than 2000+ Hz varieties.

We lack research to say whether this also applies to adults, but it’s assumed the same alarm types would be beneficial.

Voice notifications such as a person yelling “wake up!” work better than higher frequencies. However, they are not as effective as 500 Hz tonal beeping alarms — similar to those preinstalled in most mobile phones.

Our research also explores how qualities of music, and specifically melody, play a role in encouraging alert wakefulness. We found that the way in which people interpret their alarms “tunefulness” also reflects how groggy they feel after waking.

Here, people who use alarms that carry a tune they will readily hum along to will experience less grogginess than those with a standard “beeping” alarm.

With this in mind, we developed a custom rhythmic melody that led to significantly better performance upon and after waking, when compared to standard beeping alarms.

Other studies have also found popular music (which can be interpreted as being melodic) is good to counteract sleep inertia after a short nap, and even more yet if it is music the listener personally enjoys.

What does all this mean for the day-to-day? Well, given all of the above, we believe the perfect alarm must sound something like this:

it has a melody you can easily sing or hum along to;

it has a dominant frequency around 500 Hz, or in the key of C5; and,

it is not too fast or too slow (100 – 120 beats per minute is ideal).

Also remember the alarm must be louder for younger people (or for particularly deep sleepers).

If we consider the default alarms available on our devices, much more work is needed — especially since research in this area is relatively new. Hence, we suspect the availability of custom alarm downloads will increase with time.

Most pre-loaded alarms at the appropriate loudness will wake you, but specific designs (such as the one above) have been modelled on the latest research to not only encourage arousal, but also provide increased alertness.

 

Stuart McFarlane is a researcher of Auditory Perception and Cognition at RMIT University. He has received funding from the Australian Government Research Training Program Scholarship. Adrian Dyer is an Associate Professor at RMIT University. He receives funding from the Australian Research Council.

ACEN unit signs deal to buy UPC Philippines’ stake in 12 firms

AC ENERGY Corp. (ACEN) on Monday said its subsidiary had signed an agreement to buy the ownership interest and subscription rights of UPC Philippines Wind Investment Co. BV and a certain Stella Marie L. Sutton in 12 power companies.

In a disclosure to the exchange, the Ayala-led company said its subsidiary ACE Endevor, Inc. signed on March 18 the agreement for the sale and purchase of the shares in the target companies.

It will pay up to P4.5 billion for the acquisition. The price is still subject to adjustments and agreed conditions. ACE Endevor is intended to be ACEN’s project development, management, and operations platform.

The companies involved in the transaction are: North Luzon Renewable Energy Corp. (NLR); Bayog Wind Power Corp. (BWPC); Buduan Wind Energy Co, Inc.; Caraballo Mountains UPC Asia Corp.; Pangasinan UPC Asia Corp.; Sapat Highlands Wind Corp.; Mindanao Wind Power Corp.; Itbayat Island UPC Asia Corp.; Laguna Central Renewables, Inc.; Laguna West Renewables, Inc.; Suyo UPC Asia Corp.; and Solar Ace4 Energy Corp.

ACEN will buy out UPC Philippines’ 30% share in NLR consisting of 16,670 common shares with a par value of P100 per share and 740 preferred shares with a par value of P228,712.35 per share. It will also take over the 40% ownership interest of UPC Philippines in BWPC, consisting of 4,165 common shares priced at P100 apiece.

“The acquisition by the company of UPC Philippines’ ownership interest in NLR and BWPC will enable the company to have a controlling interest in the currently operating 81-megawatt (MW) wind farm and full ownership of the 160-MW Pagudpud Wind Farm, which is nearing completion, thereby increasing the company’s share in the revenues of NLR and future revenues of BWPC,” ACEN said in its disclosure.

“The Company will further have ownership of UPC Philippines development projects consisting of more than 2,300 MW of pipeline projects currently under development,” it added.

ACEN aims to become the biggest listed energy platform in Southeast Asia as plans to put up 5,000 MW of renewable energy (RE) capacity by 2025.

At home, the company is building around 484 MW of wind and solar capacity. Across the region, it has around 3,800 MW of attributable net capacity, of which, renewables account for 87% or 3,300 MW.

In the same disclosure, the renewable energy firm said its board of directors had also approved a separate transaction for the issuance of up to 390 million ACEN common shares to the owners, affiliates, and/or partners of UPC Philippines priced at P11.32 apiece.

ACEN shares at the local bourse slipped 30 centavos or 3.66% to close at P7.90 apiece on Monday. — Marielle C. Lucenio

Acciona offers solutions to address PHL water problems

By Luisa Maria Jacinta C. Jocson

AMAR MORKANI
Acciona Regional Director for
Development for Southeast Asia

THE Philippines should invest in rain harvesting and other sustainable water solutions to combat the impact of climate change and secure clean water for its population, an Acciona executive said.

“We have to understand the reason for those droughts is the impact of climate change. The rain pattern is changing and the drought season is much longer. It rains more in a shorter time, which then creates flooding and landslides,” Acciona Regional Director Development South East Asia  Amar Morkani said in a virtual interview.

The unit of the Spanish infrastructure giant Acciona offers sustainable, end-to-end water treatment and management solutions.

Mr. Morkani cited water harvesting and the desalination of seawater, among many sustainable solutions.

“The first thing is to enhance rain harvesting and storage. Harvesting rain from areas where pollution isn’t that present, like the forest. Its side effect is that you will decrease the probability of flooding and landsliding. It is essential to study the rain pattern in the necessary facilities, in order to help during the drought season,” he said.

“It is also difficult to handle the degradation of the water quality in the water table. You need to decrease the stress in the water table, meaning to pump in deep wells less than what we used to, in order for the water table to regenerate through the rainy season and harvesting season,” he added.

Water scarcity, which affects 40% of the population, is increasing due to global warming.

Mr. Morkani said that water desalination, which is a treatment process that converts seawater or brackish water into drinking water, may help boost water supply.

Acciona has been working on local projects such as Maynilad Water Services, Inc.’s Putatan Water Treatment Plant 2 in Muntinlupa City. The plant treats up to 150,000 cubic meters of water daily from Laguna de Bay.

“Acciona has sustainable solutions not only for the treatment of water but as well for the implementation. We have very strong engineering to develop water storage. We work with the government to fund the plan since each region has its complications, like the solution for Cebu may not work for Palawan,” Mr. Morkani said.

Wastewater must be treated sustainably through recycling, so that it can be released into the environment, he said.

“We have to treat wastewater. We must recycle the water in two steps: the first is the industrial (sector), all the wastewater produced must find a way to be recycled in the facilities. Then, release it to the environment so it can be used for agriculture watering, municipal watering of gardens, and the like,” Mr. Morkani said.

In the future, Mr. Morkani said that the water treatment technology will only become cheaper and consume less energy.

27 national athletes, 11 coaches support the PATAFA leadership

Chairman Rufus Rodriguez — PHILIPPINE STAR FILE PHOTO

TWENTY-SEVEN national athletes including five Southeast Asian Games gold medalists and 11 coaches rallied behind the Philippine Athletics Track and Field Association in the aftermath of its 90-day ban slapped by the Philippine Olympic Committee recently.

Decathlete Aries Toledo, marathoner Christine Hallasgo, heptathlete Sarah Dequinan, hurdler Clinton Bautista and javelin thrower Melvin Calano, who struck gold in the 2019 SEA Games at New Clark City in Capas, Tarlac were among the signatories who signed the petition supporting the PATAFA leadership.

Other notable signatories are SEAG medalists Harry Diones, Mariano Masano, Anfernee Lopena, Francis Medina, Edgardo Alejan, Michael del Prado, Frederick Ramirez, Joyme Sequita and Janry Ubas.

Among the members of the national coaching staff who also inked the letter were Eduardo Buenavista, Jobert Delicano, Arniel Ferrera, Danilo Fresnido, Sean Guevarra, John Lozada and Julius Nierras.

“We are giving our whole-hearted support to PATAFA headed by chairman Rufus Rodriguez and president Philip Ella Juico and the rest of the board of trustees in this critical times,” said the athletes.

“We hope that they wouldn’t forget that we’re also national athletes and the majority, and we’re directly affected by this decision.

“However, of all the tests that our federation is facing, we remained focused in our training so that we can deliver our best performance in our forthcoming competitions and with a full mind, we’re determined to give our country honor in spite of the bad things that happened recently,” they added.

According to PATAFA officials, more athletes could have signed including Fil-foreigners but they are busy training abroad. — Joey Villar

Berlin concert draws 10,000 in solidarity with Ukraine

FRANKFURT — Some 10,000 people attended a concert in solidarity with Ukraine in Berlin on Sunday, police said, with the crowd waving Ukrainian flags or holding banners with slogans opposing the Russian invasion.

Gathering near the Brandenburg Gate, symbol of a divided Germany during the Cold War, many performers on the stage wore shades of blue and yellow, the colors of the flag. Musicians included Natalia Klitschko, a Ukrainian singer who is married to the mayor of Kyiv, Vitali Klitschko.

Jamala, a Ukrainian singer who won the Eurovision Song Contest with her song “1944” in 2016, was broadcast via videolink on a big screen, telling attendees that “music is a peaceful force.”

“I think if all the musicians united it would be the strongest peace army in the world,” she said to the crowd, listening under clear blue skies. — Reuters

Rising mortgage rates won’t be enough to end US housing boom

A “For Sale” sign is posted outside a residential home in the Queen Anne neighborhood of Seattle, Washington, U.S. May 14, 2021. — REUTERS/KAREN DUCEY

RISING mortgage rates are already pricing out first-time homebuyers, but it’s not enough to extinguish the US real estate frenzy.

US mortgage rates crossed 4% last week for the first time in nearly three years, a rapid ascent that has taken some industry experts by surprise.

While higher borrowing costs may cool the pace of price increases modestly in some markets, the severe housing shortage and intense pent-up demand for real estate — from both traditional buyers and investors — will continue to drive housing costs higher, according to economists.

“Even if a number of buyers get knocked out of the running or put their plans on hold, some will still be forging ahead,” said Jeff Tucker, senior economist at Zillow. “There are a lot of people determined to make that home purchase — and because there are so few homes available, it doesn’t take that many determined buyers to keep the gears in motion.”

Tucker acknowledged that the quick increase in borrowing costs this year has been a humbling reminder that the housing market and rates are notoriously hard to predict, especially in a tumultuous global economy.

While Zillow’s most recent model had home-price appreciation peaking at 22% in May and then gradually slowing to 18% by February 2023, the recent spike in rates has led Tucker to cut his forecasts. The pace of price growth is more likely to slow to about 13% by early next year, he said.

So far, rising rates have stoked demand as buyers rush to lock in purchases before borrowing costs move higher. Nearly 70% of offers written by Redfin agents in February faced bidding wars, according to the brokerage’s seasonally-adjusted measure of competitiveness. That’s the highest level in data dating back to April 2020, just before the pandemic housing rally began.

“It’s the most competitive time in history to purchase a home because mortgage rates are rising from historic lows amid a worsening supply shortage,” said Redfin Chief Economist Daryl Fairweather. “Bidding wars intensified this year after rates started spiking, which lit a fire under buyers.”

With home prices rising at a record-breaking 19% in 2021 and the highest inflation in 40 years wearing down budgets, many would-be buyers have given up. The percentage of people who think now is a good time to buy has plummeted, even from the depths of the 2008 financial crisis.

Higher rates are likely to keep some buyers on the sidelines. But the US housing market is being driven by supply and demand, and prices will be pushed higher as buyers keep bumping into the shortage of available homes.

Right now, homes are being snapped up almost as soon as they’re listed, leading to critically low inventory. In places like Austin, Texas, that have seen an influx of tech workers with hefty salaries and stock options, it’s hard to imagine prices cooling off, according to Ryan Leahy, regional president of Hometown Lenders in Austin.

“That won’t happen here,” Leahy said. “There’s no way on God’s green earth.” — Bloomberg

Vivant says power generation drives 23% rise in net income

CEBU-BASED Vivant Corp. on Monday reported a 23% increase consolidated net income attributable to the parent firm to P1.78 billion in 2021 driven by its power generation segment.

Excluding a one-time gain, the listed firm with interest in the energy sector posted a 25% increase in its core income to P1.73 billion, it said in a media release.

“We’re proud of what we have accomplished amid the challenges brought by the pandemic. As we see businesses adapt to the changed landscape, we expect a demand for forward-looking, customizable solutions that will help them thrive in the new environment,” said Vivant Chief Executive Officer Arlo Angelo G. Sarmiento said.

Mr. Sarmiento added that government policies during the pandemic helped the company to survive.

Vivant recorded a one-time gain of P44.96 million in 2021 on the back of unrealized foreign exchange gains and its share in the fair value re-measurement of investment properties.

The company’s power generation business was the major driver of its earnings with a 69% share in the company’s total income from its business segments after its contribution increased 11% to P1.70 billion.

“The favorable spot market prices and the fresh contributions of newly acquired generation companies in 2021 led to the enhanced profit performance of the group,” the company said.

Meanwhile, its electricity distribution business contributed P745.57 million, 29% higher than its P579.02 million share in 2020.

“Although electricity sales for the year only grew marginally, Vivant’s improved bottom line performance was driven by reduction in systems loss, reduced tax payments under the Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises, and effective management of doubtful accounts,” the company said.

The retail electricity group’s share also soared to P64.40 million last year from the P3.93 million in 2020.

The firm said the increase in contribution was due to the expansion in the customer base of wholly owned subsidiary Corenergy, Inc., which now realized the importance of energy engineering solutions in its operations.

Vivant earlier invested in water solutions and saw the commissioning of a combined septage and sewage treatment plant in Puerto Princesa City in Palawan.

“The plant, a private-public partnership project with the City Government of Palawan, will help rehabilitate the Puerto Princesa Bay,” it said.

Vivant shares at the stock exchange on Monday were unchanged at P14.02 apiece. — Marielle C. Lucenio

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