Exporters and logistics firms are looking at several more measures, including subsidies for a Philippine flag shipping line, contracted rates and consolidation of shipments to cope with lack of vessel space and rising freight rates, according to Michael Raeuber, head of the Infrastructure and Logistics Committee of the European Chamber of Commerce of the Philippines (ECCP).
“The big problem of exporters to book their cargoes with international shipping lines for lack of sufficient space and heavily inflated freight cost call for solutions,” Raeuber told the Joint Economic Forum on Tuesday.
Raeuber is group chief executive officer of logistics firm Royal Cargo Inc.
Raeuber said for long haul destinations, ECCP is working with the Export Development Council and the Philippine Exporters Confederation Inc. on the consolidation of volumes and joint negotiations with shipping lines for contracted rates to be able to secure space at reasonable charges.
For intra-Asia routes, Raeuber said the development of a Philippine flag shipping line should be at least incentivized, enabled and encouraged if not subsidized by the state just like how other countries subsidize their national carriers.
He said Philippine shipowners should also be encouraged to upgrade their vessels for international trade and operate as a consortium cover the best possible intra- Asia ports.
Raeuber welcomed the action of the Maritime Industry Authority to allow domestic/international trade of Philippine flag vessels under one permit while maintaining the present Cabotage protection for intra-Philippine trade which is not related to import or exports.
Raeuber lamented the lack of sufficient support of Philippine shipowners to provide regional services.
He said some 30,000 container units are waiting to be exported,
