TWO Philippine companies - Davao-based Reefer Express Line Filipinas and Logistics firm Royal Cargo Inc - announced that they will launch direct shipping routes to the US, which are expected to bring relief to exporters who cannot find vessels due to the global shipping crisis.
Davao-based Reefer Express Line Filipinas said it will ship goods from Mindanao to the US at lower rates, which logistics firm Royal Cargo Inc said it will also ship agricultural products directly to the US.
These initiatives would certainly help ease the difficulties being experienced by Philippine exporters in finding ships that will transport their products to major export markets, such as the US and European countries.
In March, the Philippine Exporters Confederation Inc (Philexport) said delays in shipments being experienced by local exporters and manufacturers range from two weeks to a month. Two months after, Philexport said the delays had stretched to more than two months.
However, traders and manufacturers need more shipping companies to transport their goods to major export markets
Two groups - Philexport and the Supply Chain Management Association of the Philippines - revealed that bulk of the pending cargo are West-bound. Some shipments have already been delayed by nearly six months due to the lack of vessels and the surge in freight rates.
The Covid-19 pandemic remains as the biggest single factor that impedes the flow of goods and international trade. The partial closure of the Chinese port also has driven international freight rates to record-highs.
Local exporters and manufacturers would be hard pressed to help the government hasten economic recovery if shipment delays persist. Losses incurred by manufacturers and traders could force them to lay off more workers or reduce their work hours, a development that could expand the ranks of the unemployed and the poor in the country, reports Hellenic Shipping News.
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