Shipping Corporation (LSC) and 2GO Freight have reported better cargo business in 2011 and expect it to continue this 2012 and beyond, the ZamboTimes of the Philippines reported.
    Magsaysay-owned Lorenzo Shipping, a major player in the domestic container shipping industry, reported net freight revenue of PHP1.72 billion (US$40.6 million) in 2011, up 9.8 per cent from PHP1.568 billion posted in 2010 because of a 50 per cent increase in bunker surcharge.
    2GO Freight, which was created after rationalising the freighter lines of Aboitiz Transport Systems Corp and Negros Navigation, posted freight revenues of PHP5.7 billion in 2011, seven per cent higher from 2010's PHP5.3 billion.
    Freight revenue grew by PHP352.3 million or seven per cent year on year due to a five per cent hike in rates and increase in volume by one per cent or 1,503 TEU.
    LSC said competition among domestic lines is strong. Shipping lines competing for the containerised cargo shipping include LSC and NMC Container Lines, Inc. (NMCCLI), both owned by Magsaysay Transport and Logistics Group, 2GO, Sulpicio Lines Inc, Solid Shipping Inc and Oceanic Container Lines, Inc.
    LSC plans to launch an interport consolidation service for its customers, and it aims to become a full logistics provider, giving customers real-time information and other value-added services.
    To enhance this support, LSC will launch a new front-end software to manage its service delivery from booking, to issuing Bills of Lading, updating customers on cargoes loaded and arrival at destination, billing and cost management.
    Last year, LSC registered a net income after tax of PHP11.2 million or a decrease of 78.5 per cent over 2010's PHP52 million. The company spent PHP100 million on dry-docking of two vessels. The shipping company has acquired a 10-year-old, 400-TEU geared container vessel, to be re-named MV Lorcon General Santos and will replace its 34-year-old MV Lorcon Davao vessel to be able to improve service reliability, reduce fuel and maintenance costs.
    Meanwhile, 2GO Freight has rationalised services by reducing its number of trips by 242 trips or 13 per cent and has also managed to reduce costs substantially with the integration of container yards in almost all major ports.
    With a freight market share estimated as 33 per cent, 2GO Freight's consolidated revenue went up by PHP1.4 billion to PHP13.0 billion in 2011 from PHP11.6 billion in 2010.

(source:shipping online)