Is There Enough Cargo To Move Around?

In the last few years there has been an upsurge in the ships that move cargo. First, that became noticeable with the LCTs that became ore carriers of the black sand mining in a few provinces and particularly in Surigao where opening of mines close to the sea boomed. That happened because of the sudden great demand then of metals in China.

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An aggregates carrier LCT off Taganito, Surigao

Just after the peak of that demand, a fleet of brand-new LCTs built in China appeared in north Mactan Channel. That happened when the demand for metallic ores in China was beginning to wane. And so initially those LCTs especially those owned by Broadway One Shipping and Cebu Sea Charterers were just anchored in the channel. Those LCTs were only known by their numbers but in size those were bigger than the average Philippine LCT. Generally, their powers and speeds were also higher and better.

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Row of newly-arrived LCTs in north Mactan Channel

With nowhere to go these LCTs including those owned by others but also built in China (like the Poseidon LCTs, the Meiling LCTs, those owned by Premium Megastructures Inc., Adnama Resources, etc.) became aggregates carriers and Cargo RORO LCTs and in the latter it challenged in the business then dominated by Goldenbridge Shipping which had a route from Labogon, Mandaue to Hindang, Leyte. Sand is gold in Cebu because of its construction needs and it is not readily available in the island in quantity because of its upraised sea floor origins which meant just a lot of limestone. And so sand is transported from Leyte whose land is volcanic in origin and thus there is plenty of sand and hard rock. Aggregates carrier LCTs go as far as Samar and some also go to Bohol.

The value of Cargo RORO LCTs was highlighted when the super-typhoon “Yolanda” struck and lots of trucks have to move to Leyte and long queues of truck formed in Matnog and Lipata ports and there was also a lot of needed bottoms for trucks crossing from Cebu to Leyte. The LCTs filled this need and suddenly the Cargo RORO LCT segment was here to stay. It challenged not only old LCT operators like Mandaue Transport and Simpoi Shipping but also the overnight ferry companies operating ROROs that Roble Shipping even felt the need to charter LCTs from Asian Shipping Corporation (ASC), owner of many LCTs for charter. Now Cargo RORO LCTs connects many islands and it is also a viable transporter now of container vans from Manila to the Visayas and Mindanao, a mode pioneered by Ocean Transport that also started by chartering LCTs from Asian Shipping Corporation before acquiring their own China-built LCTs.

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On the left is an LCT of Asian Shipping Corporation chartered by Roble Shipping

I can understand the need and value of LCTs which have proven their uses and versatility recently and that is why it is still continuing to increase in number. But in the same period I also noticed the rise in the numbers of our container ships and general-purpose cargo ships which are mainly freighters on tramper duty. In general that is a surprise for me as I know our local inter-island trade is flat and intermodal trucks have already stolen a significant portion of their cargo and that can be shown in the queue of trucks in many short-distance crossings like in the routes to Panay, the routes to Eastern Visayas and Surigao and Cargo RORO LCTs are used by these intermodal trucks along with short-distance ferry-ROROs. Cargo RORO LCTs are also used by tractor-trailers hauling container vans to serve islands where local container ships are now gone or where the service is weak or the rate expensive. Examples of these are Samar, Leyte and Bohol islands.

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A Cargo-RORO LCT

I have been contacted by a writer doing the history of Delgado Brothers or Delbros which once dominated the Manila ports and which was also involved in shipping then (it was also the first employer of my late father). Delbros happened to by one of the two dominant leasers of container vans locally together with Waterfront and they cannot resolve the problem of flat leasing for several years already and they cannot fathom the reason why. I told her the reason is simple – the intermodal trucks are stealing their business.

But in recent years I have seen our container shipping companies add and add container ships. Most remarkable is Oceanic Container Lines (OCLI) which has the most number of container ships now. Notable too is Philippine Span Asia Container Corporation (PSACC), the new name of the controversial Sulpicio Lines. Lorenzo Shipping and Solid Shipping have also added a few. There are new players which are Moreta Shipping Lines which was formerly in overnight ferries, Meridian Shipping and Seaborne Shipping and these new players are also expanding their route networks. To this might be added Trans-Asia Shipping Lines Incorporated (TASLI) which now has a container ship to Manila.

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A deck loading ship

Another notable addition is Fiesta Cargo and Logistics (this is not the exact name of the company) which operates true deck loading ships. These ships have flat decks like those in LCTs and booms for cargo handling. Aside from this and container ships, the Asian Marine Transport Corporation (AMTC) also added a few RORO Cargo ships, their forte and choice of transport.

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A RORO Cargo ship

For NMC Container Lines and 2GO there was no noticeable addition although the latter have chartered container ships from Caprotec and they also charter ships from Ocean Transport (or is it Key West?). Hard to say because of the rumored split between the two. Escano/Loadstar meanwhile seems to be exhibiting a decline in their fleet.

In general-cargo ships a few companies showed newly-acquired ones and probably topping the list is Avega Brothers which from chartering ships from Asian Shipping Corporation went on a spree of acquiring trampers that though Manila in origin they regularly anchor ships now in north Mactan Channel. Medallion Transport and Roble Shipping also both acquired a significant number of freighters. Aside from the three mentioned many other shipping companies also added freighters to their fleet.

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Asian Shipping Corporation LCTs in their Mandaue port

Asian Shipping Corporation which specializes in chartering ships and operating barges aside from LCTs needs special mention because of the rate they are adding ships annually. As of last year their fleet total is nearly 200 ships already including the lowly tugs but MARINA (Maritime Industry Authority) has noted that they already have the biggest fleet in the country in terms of Gross Tonnage (GT), the traditional method of comparing ship and fleet size and that they have already displaced 2GO from its old Number 1 perch. 2GO temporarily regained the top ranking with their acquisition of the liner St. Therese of Child Jesus but I wonder if they did not slide to Number 2 again with the sale of the liner St. Joan of Arc. For an operator of supposedly “lowly” ships the achievement of Asian Shipping Corporation certainly has to be lauded.

But all of these leads me to the question, “Is there enough cargo to move around?” I know many of the trampers are just carriers of cement and other construction/hardware/electrical materials that they are practically “cement carriers”. Some are “copra carriers”. And these trampers are also carrier of bagged flour of various kinds and also other bagged products like fertilizers and feeds. But our freighters seldom carry rice and corn now unlike in the past. Ditto for cassava – the volume now is small.

Is there really a significant rise in the volume of these products? Maybe in cement and related materials because of the construction boom. But I wonder about the others. Are there other products being carried now? What I know is a lot of grocery items is now carried by the intermodal trucks.

Coal might be big now because of the rise in number of our coal plants. But freighters do not carry that. Other types of fuel are carried by the tankers.

There are incentives now from the government on the acquisition of new ships and it even opened a loan window with the government-owned Development Bank of the Philippines (DBP). Are shipping companies taking advantage of that just to hoard ships?

What I know is shipping rates in the country are high if compared to other countries. That can cover low cargo volume. The most visible show of that are our container ships. Seldom will one see them full or even near that. Well, operating ships is expensive especially since MARINA exactions adds to the cost.

Whatever, newer ships are always good. I just want to see where this would lead. Lower rates? Probably not. Better service? That is hard to measure on cargo ships. More availability of ships? Maybe one can count on that.

Anyway, this article is just meant as an update on one aspect of our cargo shipping.

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The Sinulog Fluvial Procession, the Ouano House, Piers 8 and 7

One morning I went to the foot of the SRP Road in Cebu to cover the remnant of the Sinulog fluvial procession. I just make do in that area because I will still see most of the participants and besides it is great effort to fight for a good view in the earlier parts of the fluvial procession. Anyway, it is in the vessels that I am more interested in.

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I was just in time. It was still early morning and there was a constant drizzle. But the position of the sun, the early morning and the drizzle made visibility and shots terrible. I have to make do with what is presented by nature. It seems more small crafts participated compared to the last time I covered the fluvial procession but less ferries going to Cebu port were forced to wait near the SRP. The Filipinas Iligan and the Oceanjet 6 were the only prominent ships waiting.

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There were motor bancas which stopped and disgorged the participants in the rocks by the SRP approach and I also covered those. The viewers did not stay long as the drizzle was continuous and there was no sight anymore in that areaexcept for the Coast Guard patrol ships, the Filipinas Butuan plus participant boats which were just idling.

I then decided to make my way to Ouano-House. I called it such because it is there that the E. Ouano house is located. Actually it is more like an office (I have already entered it). And I doubt if it is the ancestral house of the Ouanos because from what I can gather it is also located on reclaimed land like the other facilities in the area.

The jeep driver I rode was kind as he insisted on driving me to the wharf area. I appreciated it since there was a slight precipitation and I did not have to pay for a pedicab. The entry is easy as the guards didn’t mind. I thought it would be like that if the Lite Ferry LCTs to Tubigon have already transferred there. I might look like just one of its passengers.

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After the gate, however, it was a different matter. With the never-ending rains and the constant movement of trucks, the surface of the wharf area was already muddy though firm that one’s shoe will not get stuck. I was not surprised. If Ouano can’t maintain the road in the Ouano near the Mercado then they won’t maintain this one either. I thought FastCat would not have to worry for passenger competition to Tubigon. The muck here is already an advertiser for them. Ditto for the rolling cargo or vehicle loading trade.

It was a maze to get inside because the only firm ground with no mud was occupied by the new Litexpress CHA-ROs parked and blocking the pathways. I would go in one direction and pull back because I can’t go on. Finally I had to cross the muddy road where the trucks roll. I ended up in the Star Crafts area but this time it was already too crowded because the future Lite Ferry 17 and Lite Ferry 18 were being refitted there and steel sheets, acetylene tanks, generators and other equipment were occupying the spaces. The only open area is the road going to Star Crafts and it is also muddy.

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The Lite Ferry 17 and Lite Ferry 18 are ROPAX LCTs that came from China. Those were former HNSS vessels already phased out. HNSS means Hainan Strait Shipping and that tells where it formerly plied routes. One of them arrived earlier and is already sailing here, the Lite Ferry 16 which looked like a sister ship of them. It looked derelict then like the two now docked in Ouano-House but as always Filipino ship repairers will make them look good again.

Besides them was the new Lite Tug 1. It seems tugs are the vogue now of these competing overnight ferry companies. Roble have theirs already, Asian Marine Transport Corporation (AMTC) also got one, Cokaliong Shipping Lines followed suit and now Lite Shipping also have one too.

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Also there were Lite Ferry 26 and Lite Ferry 23. It seems those two were the ones doing the Mandaue-Tubigon route last December altho the latter is not the normal LCT but a catamaran-RORO (a slow one tho). Also there near the SMC Shipping and Lighterage facility was the brand-new Lite Ferry 30. It seems like what they did in the earlier Lite Ferry 27 they were building additional passenger accommodations. It looks like they are sister ships together with the Lite Ferry 29.

I did not stay that long in that wharf. Sometimes it is the rain that makes you decide that. I left after my functional shipspotting and I have to go through the maze again but that was easier than navigating the mud in various parts of that wharf. I really wonder how the passengers make do with such situation. Is the cheapness enough to make them stick? I was able to see the tail end of their way out when one LCT just arrived. I saw no shuttle and here the walk to the jeepney terminus is even longer with less shade.

Sometimes I cannot imagine in this era that such hardship can still be thrown to the passengers. Those LCTs, the wharf and the road were just really designed for trucks. Not passenger-friendly in any way. Maybe the FastCat and Star Crafts are a little more expensive but there is still the Lite Ferry 1 which also does a route to Tubigon. I also wonder. Why don’t the Super Island Express II just come back and maybe hold some off-hour schedule versus the Lite Ferry 1. Pier 1 might even have less expensive connections to the buses and jeeps of Cebu. Sorry not jeeps because that type is so few in Cebu. What I mean are the AUVs, Multicabs and converted Elfs and Canters of Cebu.

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From the wharf I made my way to the old Villa Shipping wharf which was just rented from Ouano. I was glad the K-9 guard of Ouano was not there. Their compound was closed and it seems no one is around. Good. I can approach their Elvira-1 and take shots. I wonder why they were too jealous of this old, derelict and bad-looking now former hydrofoil converted into a fastcraft which did not last in service. They should even be glad someone is taking interest. It seems they have a different psychology from us.

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There were no more Villa ships there and it seems they have already left as I can see no more ships and facility of them there. What was docked there was the West Ocean 1 of Ocean Transport. I can’t make of the the jumble there. It seems different entities are using that area and not all are connected to shipping.

It was at the far end where I was interested because I want to go near the Lady of Love of Medallion Transport which has not been sailing for some time already. Got some shots but it was not easy as the rain got heavier. Beyond Lady of Love the LCT Poseidon 19 was also docked. Last December this ship was still running the Matnog-Allen route for NN+ATS as a Cargo RORO LCT. Primary Transport Solutions owns this vessel and NN+ATS only charters it.

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Again I did not stay long. On the way out I took shots of the old derelict F/C Magallanes, a fastcraft for private use. I was told before it was a Durano gift to Ouano. I did not know enough of Cebu politics and shipping of before to work out how that happened. All I heard was before Durano has shipbuilding and was a Cebu shipping player. In fact one of their derelicts is there in Labogon by the Goldenbridge wharf.

I thought Ernesto Ouano was lucky (except he died prematurely). Well, just to have a big reclaimed area near Cebu, how much is that in legacy worth? Plus their wharves. It is practically a Lite Ferries wharf now but Lite pays them. They are rich just because of the payments for the use of the wharves. But later it seems F.F. Cruz and Lua stole their thunder in Cebu reclamation. And I don’t think they are players in the future Cordova reclamation. But still they are very lucky.

I no longer pushed my ship spotting that day. Too much rain and I am not a farmer. Rain would have been nice in April but the programmer is a little awry. But the next day I came back to the same area but this time my targets were Pier 8 and Pier 7. It was a Sunday and there was no activity there past CDU. I first asked the guard of Ravago/Asian Shipping Corporation. A little canine too but I didn’t mind, didn’t press. Can’t call their GM as all mobile lines of Metro Cebu were down to prevent bombing. I was really more interested to see what was the denouement in the AMTC (Asian Marine Transport Corporation) eviction case nearby.

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The AMTC yard was deserted now along with the Dakay Construction yard which was also part of the AMTC lot that was in dispute with F.F. Cruz through the MARRECO entity. MARRECO sought the eviction of AMTC for non-payment and they won in the court. MARRECO then blockaded the facility to prevent AMTC from using it. And AMTC left and transferred to Ouano after a failed bid for the Talisay fishport.

The guards by MARRECO there were suspicious but they told the reason why the Super Shuttle RORO 8 was docked there last December was to take in all AMTC materials left that can still be loaded. But I don’t really know why Super Shuttle RORO 3 and Super Shuttle RORO 2 were also there last December. The two had long been just anchored and not sailing for the best part of 2016.

From there I made my way to the Roble wharf. The left side of that if facing to the sea actually belongs to F.F. Cruz and it is where aggregates carrier LCTs and barges dock. The right side belongs to Roble Shipping. There were three newly-arrived freighters there and I was told two belongs to the scions already. There was also the many docked ships of Roble including the non-running ones. The Ormoc Star was there. She is really ready now for the breakers. On the far end was the fire-hit Wonderful Stars where no work is going on.

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It was lonely in that area on a Sunday Sinulog. Almost no people and movement. I caught a jeep going to Mactan and then I walked again the old Mactan bridge. From there I took a Multicab to Muelle Osmena and took the Metro Ferry. The light was dying when I reached Pier 3 and that ended my ship spotting for that day.