Camotes Sea and Bohol Strait Are Graveyards of Failed Shipping Companies (Part 1)

The Camotes Sea and Bohol Strait are two of the busiest shipping lanes in the country. These are the seas connecting Leyte and Bohol to the trade and commercial center of the central part of the country which is Cebu. Ships from Cebu going to Samar, Masbate, Mindanao and even Luzon have to pass through these seas also along with the foreign ships calling in Cebu. Over-all, the related Camotes Sea and Bohol Strait as sea connections are only rivaled by Manila Bay and the Verde Island Passage in the density of ships sailing and the three are the busiest shipping corridors in the country. There are many shipping companies operating here, both ferry and cargo. However, in terms of absolute numbers, this is also the area with the most number of failed shipping companies in the last 15 or 20 years when a Ph.D. from Philippine Institute of Development Studies (PIDS) said there is no competition or there is no effective competition or there is just mild competition in most routes here. Of course, she was definitely wrong if we sift through the evidence and among the most persuasive of evidences will be the number of shipping companies that failed. Why would they fail if there is no or only mild or no significant competition? Did they commit suicide? Of course not!

The greatest failure in this area is, of course, the big Cebu Ferries Corporation (CFC), the subsidiary of the giant merged shipping company WG&A Philippines which was probably the biggest regional shipping company ever. Their old ships were gone and dead before their time is up because those were sent to the hangmen of ships, the shipbreakers. Their newer ferries, the MV Cebu Ferry 1, the MV Cebu Ferry 2 and the MV Cebu Ferry 3 (the Cebu Ferry series) were transferred to the successor company 2GO Travel and those ferries were sent to Batangas and they are jokingly called the “Batangas Ferries” because they were no longer in Cebu.

6811024296_f345c38c56_z

Cebu Ferry 1 leaving Cebu for Batangas

Once upon a time, this company ruled the roost here when they had so many ferries, many of which were hand-me-down liners or equal to liners in caliber. These hand-me-downs were actually much better and bigger than the overnight ferries of their competition. Their only drawback were their big and generally thirsty engines which was needed for speed requirement of the liner routes. Before the Cebu Ferries series came, some ten ships that passed to the Cebu Ferries Corporation fleet were sent to the breakers and most of them were still sailing good when they were sent to the cutters.

For more on this shipping company, I have a separate article:

https://psssonline.wordpress.com/2016/05/15/the-grand-start-of-cebu-ferries-corporation-cfc/

Probably the next biggest casualty in this area is the Palacio Lines (a.k.a. FJP Lines) which had its origins in Western Samar. In their heyday they had routes from Cebu to Bantayan island, Masbate, Northern Samar, Western Samar, Leyte, Bohol, Siquijor, Negros Oriental and Misamis Occidental. They lost some routes because of paradigm changes like in Bantayan island when they were torpedoed by the short-distance ferry-ROROs from Hagnaya (which is a much shorter route than their route from Cebu City). Palacio Lines was slow in betting on ROROs and they did not immediately see that the paradigm will shift to the intermodal system (as they still acquired cruisers even in the early 1990s).

6125161419_4382181275_z(1)

Don Martin Sr. 8 not sailing before she was sold to breakers

Later, there were complaints about their ships which progressively got older and less reliable and soon competition was outstripping them. And finally the pressure from these (like Cokaliong Shipping Lines and Lite Ferries) ultimately did them in. They stopped sailing and soon they sold their remaining ferries one by one. This included their MV Bantayan (sold to Orlines Sea-Land Transport), MV Calbayog (sold to Starlite Ferries) and MV Don Martin Sr. 6 (supposedly sold to a Lucena concern). Meanwhile, their biggest ship, the MV Don Martin Sr. 8 was sent to the breakers. And the cruiser ships of the company were even laid up earlier. Their cargo ship, the MV Don Martin which was the first vessel of the company was also sold and this ended up with Quincela Shipping in Manila.

Former fleet: Calbayog, Bantayan, Don Martin Sr. Don Martin Sr. 3, Don Martin Sr. 6, Don Martin Sr. 7, Don Martin Sr. 8, Don Martin

The Rose Shipping Company which is also known as Vicente Atilano (after the owner) is probably the next most prominent loser in the shipping wars in this place. Originally they were a Zamboanga del Sur shipping company from the old town of Margosatubig. Leaving that area, they tried their luck here and they fully engaged in the wars in the Leyte routes especially against Aboitiz Shipping Corporation. One of their weakness, however, is their total reliance on cruiser ferries. Being obsolete, this type of ship progressively cannot compete with the ROROs in revenues (but not in comfort and service). Rolling cargo revenue is actually bigger and more significant than passenger revenues. They then stopped sailing and most of their ships had no takers even if for sale because almost nobody looks around for cruisers anymore. Their only notable ship sales were the MV April Rose which went to Atienza Shipping Lines in Manila and the MV Yellow Rose which went to Medallion Transport. Their MV Cherry Rose and MV Pink Rose were broken up while their MV White Rose and MV Tiffany Rose are missing and are presumed to be broken up. Their MV Pink Rose and MV Red Rose can’t also be found now and in all likelihood have been scrapped too by now.

5532548264_a1298bbb8b_z

The Pink Rose in her last days

Maypalad Shipping which was earlier known as K&T Shipping is one of the older shipping companies in the area. They have disparate routes from as far as Lanao del Norte, Leyte, Southern Leyte and Samar. They seemed to have never really recovered from the sinking of their MV Kalibo Star which was their newest ship then and progressively their ships got older. They were also victims of routes that bit by bit weakened because of competition from other routes (like the Liloan route losing to the Bato and Hilongos routes and the Tacloban route losing to the Ormoc and Baybay routes). In due time, they had no good routes left and their ships were also unable to compete in the bigger routes.

5930870949_7837ec0b0f_z

Part of the Maypalad Shipping fleet after it ceased operations

Among these bigger failures, it is Maypalad Shipping which has a fleet of cargo ships but upon being defunct all of these got anchored too in Mactan Channel. Their MV Cebu Star and MV Guiuan were broken up now while their MV Cabalian Star, MV Leyte Star and MV Tacloban Star could all also be gone now. Their MV Samar Star is the only sure extant ship now along with one freighter which may be too far gone now. Three other cargo ships of their wer also broken or sold to breakers and their LCT is also missing.

Roly Shipping and Godspeed Shipping and Ernesto Alvarado are actually legal-fiction entities of the other. They had routes before to Leyte and Bohol. But being a cruiser ferry company, they slow lost to the ROROs since this type of ship earns more revenues because the rolling cargo revenue is such that they can actually afford not to carry passengers as shown by the Cargo RORO LCTs. Some of their earlier ships were gone a long time ago (the MV Flo Succour, the MV Reyjumar-A, the MV Isabel 2 and the MV Tubigon Ferry). The tried to fight back with fast cruisers, the MV Roly 2, the MV Mega Asiana and the MV Tagbilaran Ferry but ultimately they lost too and quit a few years ago when the banks seized their ships and were laid up. The pressure of tightening competition was simply too great and the revenues were not enough to sustain operations. There were also allegations of internal rot.

8588915907_2e20c417fa_z

Mega Asiana and Tagbilaran Ferry cannibalized

Jadestar Shipping is another cruiser ferry company which just had a single route, the Cebu-Tubigon route. Then the ROROs of Lite Shipping came to Tubigon, four schedules in all daily. With a full load of rolling cargo these ships will not need any passengers to earn. And then a new paradigm came, the cheap but not-so-speedy but fastcrafts of the legal-fiction entities Sea Highway Carrier and SITI Inter-island and Cargo Services which were more popularly known as Star Crafts. Squeezed by two better competitors, Jadestar Shipping found they could not sustain operations and quit a few years ago (in connection with this, Island Shipping which also operated cruiser ships in the Cebu-Tubigon route also quit showing cruisers cannot beat ROROs).

22492489706_0c06b0c15a_z

Jadestar Seis now in Ibnerizam Shipping fleet in Zamboanga

Some of the ships Jadestar Shipping were sold to other shipping companies like the MV Jadestar Tres which went to Wellington Lim and became a cargo ship and the MV Jadestar Seis which went to the Ibnerizam Shipping of Zamboanga). Two of their ships was broken up earlier and this were the MV Jadestar Nueve and MV Jadestar Doce. Head-on, the cruisers can only compete now in Zamboanga (but then that is another situation).

Former fleet: Jadestar, Jadestar Dos (cargo), Jadestar Tres, Jadestar Seis, Jadestar Nueve, Jadestar Doce.

Kinswell Shipping made a big splash when they started in 2002 because what they introduced were China-built vessels that were not of the usual design or hull material. Some of these are actually very small and not bigger than boats and were a little queer. But their Medium Speed Crafts (MSCs) could have been winners had they been handled well. One sold one, the MV Gloria G-1 is sailing well for Gabisan Shipping and the comparable Star Crafts were also successful.

5963200915_ee5f7806c5_z

The derelict Kinswell boats

They tried many routes and the name of the ships reflected where they were sailing. The smallest ones were the first to quit sailing as it found no great patronage because they simply bobbed too much in unsettled seas. Now they are jut anchored near the Tayud shipyards. Being fiberglass they will not sink or rust and so up to this day those remain as floating markers outside Cansaga Bay. All their three bigger ships, the MSCs were sold, the MV Kinswell, MV Kinswell II and lastly, the MV Kinswell Cebu. They have no more sailing ships left.

Former fleet: Kinswell, Kinswell II, Kinswell Cebu (2), Kins Bantayan, Kins Ormoc, Kins Danao, Cadiznon 3, Kins Camotes.

San Juan Shipping of Leyte is another hard-luck company. They were doing relatively well with their first two ferries, the MV Sr. San Jose, a beautiful cruiser and the MV John Carrier-1, a small ferry even though competition to the Leyte route was already stiffening. Now, I wonder how they were sweet-talked into purchasing the MV Dona Cristina of the Cebu Ferries Corporation. This overnight ferry was a former regional ship of the Carlos A. Gothong Lines, Inc. (CAGLI) whose old ships invariably has a history of engine troubles (except for MV Our Lady of Mt. Carmel). However, it was already WG&A, the merged shipping company which sold the ship to them. Maybe they thought that since the name WG&A was glistening then, then the ship must be good.

6091718949_db7b847cd4_o

The remains of San Juan Ferry (Photo by Kontiki Diving Club-Cebu)

This ship which became the MV San Juan Ferry in their fleet and became the flagship and biggest ship. San Juan Shipping spent money to refurbish this ship. However, the ship brought misery to them when a explosion hit the ship and caught fire while on trials off Liloan, Cebu. The ship then sank. San Juan Shipping never recovered from that debacle especially since competition then to Leyte was very fierce. They then sold out to Lite Ferries lock, stock and barrel and it was there that Lite Ferries gained a foothold to Leyte.

M.Y. Lines is unique in a sense that when wooden motor boats were already on their way out they sort of made a revival out of it. They had two big, wooden motor boats in a fleet of three but one, the beautiful MV M.Y. Katrina was wrecked in a typhoon and scrapped. They bounced from one route to another and was never able to fully settle especially since they were using non-ROROs when ROROs had already come into full force and was proving its superiority. They tried to find niche routes in northwestern Leyte but was never able to really discover one. One thing that torpedoed them there was the opening of the Bogo-Palompon route and the rolling of Ceres buses from Cebu to that corner of Leyte. Later, their ferries were seized by the banks and laid up.

Former fleet: M.Y. Katrina, Michael-3, Sunriser

(To be continued)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s