The Merged Carlos A. Gothong Lines Inc. and Lorenzo Shipping Corporation Was Still a Great Shipping Combine Before Their Break-up in 1979

In 1972, the first great break-up in Philippine liner shipping after World War II happened. The then No. 1 shipping company in the Philippines, Carlos A. Go Thong & Co. broke when its general manager Sulpicio Go decided to go it all alone. The old company then just exceeded the old No.1, the Compania Maritima which was already in a death spiral but nobody realized it then considering that as late as 1968 and 1970 Compania Maritima still purchased great liners with the one purchased in 1968 a brand-new one from West Germany (the Filipinas which became their flagship).

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The Sulpicio Lines schedule in 1974 (Gorio Belen research in the Nat’l Library)

Sulpicio Go then founded Sulpicio Lines Inc. with 16 ships coming from the old company. Of the 16, twelve were liners and the others were regional ships. Still with that size, Sulpicio Lines started with a Top 5 ranking in the local totem pole of shipping companies. Not bad for a start especially their fleet had many liners that came from Europe.

The remnant of Carlos A. Go Thong & Co. became the Carlos A. Gothong Lines, Inc. (CAGLI) which still bears the name of the founder and the other one was Lorenzo Shipping Corporation (LSC) which were owned by the siblings of the owner of CAGLI. For strength, of course, and to better withstand the tremors of the splintering, the two pooled operations but they retained different names. From the billing one can surmise that CAGLI was at the helm of the combine. But if one analyzes the fleet holdings, it would look like Lorenzo Shipping Corporation was the stronger one with more ships but this was not apparent to the public.

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The CAGLI + LSC schedule in 1974 (Gorio Belen research in the Nat’l Library)

One of the weakness of the CAGLI+Lorenzo Shipping combine was their lack of good liners. Out of the 10 liners from Europe that arrived for Go Thong in 1963 to 1969, only four went to the combine. 6 of the 10 went to Sulpicio Lines and 3 went to CAGLI but 2 of those were graying ex-“C1-A” ships which were World War II surplus ships that were broken up anyway in 1973. Only one of the 10 liners from Europe went to Lorenzo Shipping Corporation. Well, even the liner Dona Angelina (the former Touggourt) that came in 1972 also went to Sulpicio Lines.

Another retained ship of Carlos A. Gothong Lines Inc., the Sarangani Bay which came from the National Development Corporation (NDC) and was a former ship of the Maritime Company of the Philippines (the international line of Compania Maritima) was also broken up and even earlier, in 1972. Another retained ship, the Dona Paz (the former Dona Hortencia; this was a different and earlier ship than the infamous one which sank off Mindoro in a collision with the tanker Vector), Go Thong’s only liner from Japan was disposed off in 1974.

With those disposals Carlos A. Gothong Lines Inc. began buying small cruiser liners from Japan which were just in the 50-meter class, in the main, which were mainly good for the secondary lines as it were no bigger than the ex-”FS” ships. Lorenzo Shipping Corporation did not dispose much but it also began buying small liners from Japan and those were slightly bigger than what CAGLI was buying. Well, it seems the two companies were affected then by the fast devaluing peso which made ship acquisitions more expensive. Together the combined CAGLI+LSC fielded those and their few retained ex-”FS” ships against the competition.

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1977 CAGLI + LSC schedule (Gorio Belen research in the Nat’l Library)

The combine was not shabby as some might think. They just don’t have the glitz and the glitter and they used cargo ships to augment their fleets. The biggest shipping companies then can field 15 passenger-cargo ships from the mid-1970’s and the list is short: Aboitiz Shipping Corporation (including subsidiary Cebu-Bohol Ferry Company), William Lines Inc. and Sulpicio Lines Inc. The combined CAGLI+LSC was able to match that! Compania Maritima has less ships but their ships were bigger.

In reckoning, that meant CAGLI+LSC combine was in the Top 5 of the national liner shipping field and maybe even higher just before the break-up when in 1979 they had a total of 24 ships. Well, that is not bad and it is even surprising for a remnant of a big shipping company. But that will also show how big Go Thong will then be if they did not break up! If they did not then they will have over 30 liners, the same number as WG&A at its peak although admittedly the latter’s ships were bigger and better.

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1979 schedule of CAGLI + LSC (Gorio Belen research in the Nat’l Library)

What changed in the combine, however, was they were no longer challenging for the prime Manila-Cebu route as they didn’t have good liners for that. The primary liners of competition were simply better than theirs and they don’t have the fast cruiser liners (like Sweet Faith, Sweet Home and Cebu City) that were already dominating the Manila-Cebu route then. However, they were making a spirited fight in the Southern Mindanao and Northern Mindanao ports and routes. They were still not beaten.

In 1979, a new paradigm began to appear and appear fast in the local shipping scene, the container ships. Before, it was the passenger-cargo ships including the passenger-cargo liners which were carrying the cargo. If liner companies have cargo ships, it was very few and some didn’t even possess one. Now with the shift, it seems it was already de rigeur to acquire one including the associated container vans. It looked it is the only modern and safe way after all the headaches and complaints in the damages and pilferage of loose cargo loading (LCL).

If one studies the following course of events, it seems Carlos A. Gothong Lines Inc. and Lorenzo Shipping Corporation had a difference of opinion in how to handle the completely new and threatening paradigm, that of container shipping. CAGLI voted to leapfrog to ROROs while LSC voted to play in the container trade and even withdrawing from passenger shipping eventually. And this might have provoked the split between them.

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This later became the Dona Anita in the CAGLI + LSC fleet (Gorio Belen research)

The two then played not only different paradigms but also two different areas of concentration. Carlos A. Gothong Lines withdrew from the Southern Mindanao ports and routes while Lorenzo Shipping Corporation concentrated there.

But how they went from 1980 and on will definitely require a different article as the paths of the two companies diverged already.

Abangan!

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The Last Stand of Compania Maritima

In the postwar years, Compania Maritima stressed routes going to southern and western Mindanao (because ships going to southern Mindanao dock in Zamboanga first). It was easy for them since they had liners bigger than former “FS” ships, a luxury not available to their competitors and they had more ships (which is needed since the route were long and takes time to come back). That period Compania Maritima was the biggest shipping company in the Philippines and half of their fleet were big ships. In terms of big ships, they then had the most in the country.

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Photo credits: Manila Chronicle and Gorio Belen

Most ships running the southern Mindanao routes were former “FS” ships which were once small cargo ships of the US Army in World War II. In those routes, Compania Maritima were using former passenger-cargo ships from Europe and there was a whale of a difference between those and the former “FS” ships. The extra space and speed matters a lot and smaller ships were simply more bouncy in inclement weather or when the monsoons are blowing hard.

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Their competitors William Lines and Go Thong were just using former “FS” ships in the route and in the case of the latter it was even using lengthened ex-”F” ships. PSNC (Philippine Steam and Navigation Co.) meanwhile has mixed ex-”FS” and ex-C1-M-AV1” ships in the southern Mindanao routes. In 1955, when Everett Steamship’s duo of brand-new luxury liners which were sister ships arrived, the Legazpi and the Elcano, PSNC withdrew the former “C1-M-AV1” ships in the Davao route (Everett SS was then operating through PSNC in partnership with Aboitiz Shipping Corporation).

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A former ex-“C1-M-AV1” ship (Photo credits: Phil. Herald and Gorio Belen)

Compania Maritima was dominant in the southern Mindanao routes because their ships were simply bigger, better and faster. Their only worthy competition were the Legazpi and Elcano but still their ships which were former European passenger-cargo ships were bigger than those and has more cargo capacity, an important feature then since more cargo meant more revenue.

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(Photo credits: Phil. Herald and Gorio Belen)

In those routes to the south, Compania Maritima followed what was in vogue or normal then, that is the ships pass so many intermediate ports (as in up to six) and Cebu or Iloilo will be one of them. The ships will then dock in other Visayan ports like Tagbilaran, Dumaguete or Pulupandan or northern Mindanao ports like Cagayan de Oro, Iligan or Ozamis, among others. In the early ’70’s, Sweet Lines pioneered the route through the eastern seaboard of Mindanao. But just the same their ships docked first in Visayas ports.

That was the reason why ships then took nearly two weeks to complete a voyage and two ships had to alternate in serving a route to southern Mindanao so a weekly schedule can be maintained. Most had Davao as end port and some had Gensan as end port. Those still going to Davao usually docked also in Gensan (it was called Dadiangas then). A few ships had Cotabato as the end port (it was actually the Polloc port in Parang, Cotabato).

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MV Dona Ana (Wikimedia Commons)

However, in 1976, the new paradigm, that of fast cruiser liners came also to Mindanao. Bringers of it were Sulpicio Lines with the Dona Ana and William Lines with the Manila City. These fast ships only took three days to Davao compared to the six days of the liners before. These new ships only had one intermediate stop, Cebu for Sulpicio Lines and Zamboanga for William Lines. Fast cruisers of that era meant a ship can do 18 knots sustained. These fast cruisers had prompt departures and usually they will arrive at the posted ETA.

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Photo credits: Times Journal and Gorio Belen

Aside from the Dona Ana, Sulpicio Lines also introduced small passenger-cargo ships with direct Davao sailings and these ships only took five days for the voyage. In 1978, Sulpicio Lines introduced the fast cruiser liners Don Enrique and Don Eusebio to Southern Mindanao routes. Even with these fieldings, Sulpicio Lines and William Lines maintained their old ships with multiple intermediate ports which took six days and with two ships alternating. But passengers who can’t afford or who don’t want to take the plane suddenly has a faster and more luxurious passage. These moves of Sulpicio Lines and William Lines put a lot of pressure on the other operators.

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Photo credit: Gorio Belen

These new liners of Sulpicio Lines and William Lines, being fast and taking fewer days forced changes in the sailings of the other companies. Sweet Lines then assigned three ships rotating to the Davao route and by using the shorter eastern seaboard route and with just one intermediate port was capable of reaching Davao in 4 days. Sweet Lines cannot match Sulpicio Lines and William Lines because they have no fast cruiser liners (they will try to match in 1983 when they acquired the fast RORO liner Sweet RORO 2).

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Photo credit: Times Journal and Gorio Belen

The combined Carlos A. Gothong Lines Inc. (CAGLI) and Lorenzo Shipping Company tried a new tack. They simply dropped passenger service to Davao and offered direct cargo sailings (hence, their ships can almost match the sailing times of the Sulpicio and William fast cruisers). Aboitiz Shipping Corporation meanwhile had already dropped Davao and Gensan even before and their ships were sailing up to Pagadian only (which they will also relinquish and abandon southern Mindanao). The other liner companies were not involved in this battle like Escano Lines, Negros Navigation and the minor liner companies because they had no southern Mindanao nor western Mindanao routes even before.

Compania Maritima which like the others used doubling of ships to Davao or Gensan also used the approach of Sweet Lines, that is to triple the ships in a Davao route so their sailings time will be reduced to four days. Their ships are faster than Sweet Lines’ but although they pruned the number of intermediate port they really can’t bring it down to just one port (so they are not faster to Davao than Sweet Lines). By this time Compania Maritima was already using their best and fastest ships to the Davao route and their next echelon of ships were also doing the other southern Mindanao routes. With this tactic Compania Maritima had a very thin coverage of their old northern Mindanao and Eastern Visayas routes.

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The Compania Maritima flagship (Photo credits: Evening News and Gorio Belen)

If Compania Maritima thought they can hold fort with this tactic they were sadly mistaken. In 1978, Aboitiz Shipping Corporation boldly came back to the southern Mindanao routes with its container ships, a new paradigm in Philippine shipping and they were offering direct sailings which means no intermediate ports. With that they can offer a faster (than Compania Maritima and Sweet Lines) and more secure shipping of goods with less damage. William Lines and Sulpicio Lines, not to be outdone, matched this new offering of Aboitiz Shipping Corporation the next year and this was followed soon by Lorenzo Shipping Corporation. Not to be left out was the new Sea Transport Company, a pure cargo company which offered direct container services to southern Mindanao even ahead of the national liner majors.

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Photo credits: Times Journal and Gorio Belen

As mentioned before, Sweet Lines also followed suit with a fast service to Davao with the Sweet RORO 2 in 1983. If Compania Maritima was also strong in Cebu cargo before, by this period the national liner majors also had direct and dedicated container ship sailings to Cebu. Cargo is actually the bread and butter of shipping and since Compania Maritima never invested in container ships in due time they were already badly outgunned. Their competition already had fast cruiser liners and it had containers ships too, both new paradigms that Compania Maritima never possessed and they were still stuck to the old cruisers and old way of sailing.

I don’t know if Compania Maritima ever thought of getting aboard the new paradigms. Whatever, events soon decided things for them. President Marcos’ grip on power was loosening, his health was deteriorating and soon Ninoy Aquino was gunned down in the airport in his return in 1983. Political crisis and financial crisis were soon raging in the land, the peso was sinking very fast and production and trade suffered. Even prime companies were tottering on the edge then because of crushing debt loads when lending from the banks was nearly impossible. In this period, even the local operations of the major car assemblers collapsed – Toyota, Ford, General Motors. Other big companies were closing shop too.

The next year Compania Maritima’s answer to the crisis became known to all. They simply ceased operations too like the motoring majors and soon their dual-citizen owners were on their way back to Spain. Compania Maritima’s ships were laid up but soon they were sold to the breakers one by one. By 1988, none of Compania Maritima’s ships were still existing.

And that was how the old and long No.1 in Philippine shipping ended its life.

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Compania Maritima building in Cebu

Cagayan de Oro Port And Trans-Asia Shipping Lines

Cagayan de Oro port is the main connection of Mindanao to Cebu through the sea and in the south it is Cebu that is the primary trade and commercial center. Cebu supplies so many goods to Mindanao and it also attracts a lot of students and professionals from northern Mindanao. Besides a lot of people in Mindanao have Cebu origins. Cebu’s pre-eminence goes back a long, long time ago and that was even before the Spaniards came. When Magellan reached Cebu they noticed that there were many ships from Siam! Sugbu was already a great trading center even before Fernando Magallanes and Lapu-lapu were born.

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Cagayan de Oro port

Cagayan de Oro was not always the main port of entry from Cebu to Mindanao. Misamis town (Ozamis City now) reached prominence earlier than it and that was why it was the capital of the unified Misamis province then. And in the boom of copra before the 1929 Wall Street Crash in the US, Medina town and Gingoog were even more prosperous than Cagayan de Misamis, the old name of Cagayan de Oro (by the way there is no gold in that city; it was just a name creation to make it more attractive-sounding). Camiguin was also more prosperous then than Cagayan de Misamis (because of copra and not because of lanzones). All these are validated by the biography of former Vice-President Emmanuel Pelaez who hails from the area and whose father was the former Governor of the unified Misamis province.

But things always change and when the interior of Mindanao was opened for exploitation and the Sayre Highway that extended up to Cotabato province was built, slowly the central position of Cagayan de Misamis buoyed it up until it exceeded Misamis, Medina, Gingoog and Camiguin. The Americans’ interest in Bukidnon agribusiness (think pineapple and Del Monte) also helped a great deal and with that even Bugo port in Cagayan de Misamis became a port of importance.

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Part of Sayre Highway leading to Bukidnon

Many shipping companies served the growing commerce between Cebu and Cagayan de Oro. Some of earlier ones were national liner companies (almost all liners then going to Cagayan de Oro call in Cebu first) and some were regionals like Central Shipping (but this graduated to the national liner company Sweet Lines). The situation then was national liner companies dominated the Cebu-Cagayan de Oro corridor (in fact the entire Cebu-northern Mindanao corridor). On the side of the regionals, they were then dependent on wooden motor boats and at best they would have ex-”F” ships or ships converted from minesweepers or PT boats.

In 1974, a new shipping company was born in Cebu which was first known as Solar Shipping Lines but they immediately changed their company name to Trans-Asia Shipping Lines Inc. or TASLI for short. This company had an entirely new tack which made them surpass their regional rivals immediately. Their strategy was to buy good surplus cruisers from Japan whose size even exceeded the former “FS” ships which in those days still dominated the fleet of the national liner companies (but which actually are already reaching the end of their reliable service and were already prone to accidents). The age of those surplus ships of TASLI was about the same of the small liners being purchased then from Japan by the national liner companies. So imagine TASLI’s edge in the regional and specifically the Cebu-northern Mindanao shipping wars especially the premier route to Cagayan de Oro.

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Asia Philippines by TASLI

The cruisers of Trans-Asia Shipping Lines were of course faster, more reliable and more comfortable as comfort was not the strength of the former “FS” ships then which has cargo origins. And, of course, the ex-”F” ships, etc. were even more inferior along with the wooden motor boats. Even in the 1970’s when our population was much smaller and the trade of goods then smaller too, Trans-Asia Shipping Lines was able to form a fleet of seven of these modern (by Philippine standards) cruisers which were all built in Japan in the late 1950’s and early 1960’s.

These TASLI ships bore the names which later became familiar even to the current generation: Asia Philippines, Asia Japan, Asia Indonesia, Asia China and Trans-Asia (two were sold and replaced by ships that bore the same name). To complete the modernist approach, Trans-Asia Shipping Lines built a modern main office and an airconditioned ticketing office just across Plaza Independencia which stands until now and the company was justifiably proud of those. And I say I have to congratulate its architect and the owners because the building still looks beautiful four decades later. Their buildings were just near where their ships docked then. Actually, I sometimes go there just to feel the ambiance and the history of the place.

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TASLI ticketing office

When the new shipping paradigm came which we know today as the RORO ships, Trans-Asia Shipping Lines immediately went aboard and sold their old cruisers. In this field, among the Visayas-Mindanao regional shipping companies, only Carlos A. Gothong Lines Inc. (CAGLI) was ahead of them. In the 1980′,s after the break-up with Lorenzo Shipping Corporation, CAGLI stressed regional operations and they were first to realize the superiority of the ROROs even in the overnight ferry field. Roble Shipping Inc. and Cokaliong Shipping Lines Inc. (CSLI) were among the recipients of the cast-off cruisers of TASLI.

In succession from 1987, Trans-Asia Shipping Lines acquired Asia Hongkong, a new Asia Japan, Asia Thailand, Asia Taiwan, Asia Brunei and a new Asia Indonesia, a new Asia Singapore, a new Trans-Asia, a new Asia Philippines and a new Asia China with the last one added in 1995. Trans-Asia Shipping Lines were adding more than a new ship a year in this stretch and this brought them easily to the top of the Visayas-Mindanao regional shipping companies. From Cebu as a hub, their routes spread like the spokes of the wheel with routes to Mindanao, the all the major Visayas islands and even Masbate in the Bicol Region. And they dominated the Cebu-Cagayan de Oro route. They even exceeded there Carlos A. Gothong Lines and Sulpicio Lines.

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The jewels of their fleet were the sister ships Trans-Asia and Asia China. The two were nearly liner in size and speed and they had the appointments and comforts of a liner. In those days, the two were probably the best overnight ships in the whole country and Trans-Asia Shipping Lines was justifiably proud of the two. It was more than a statement that “they have arrived”. They were the best among the regionals, the top in the totem pole of this category.

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But storms at sea can suddenly appear out of nowhere and their fury could be fiercer than one might expect. The “typhoon” that battered Trans-Asia Shipping Lines appeared on January 1, 1996 when the “Great Merger” between Williams Lines Inc., Carlos A. Gothong Lines Inc. and Aboitiz Shipping Company happened which produced the giant shipping company WG&A. With the creation of WG&A, a new, more powerful regional shipping company suddenly appeared, the Cebu Ferries Corporation or CFC. It also had another subsidiary, the High Speed Craft (HSC) company SuperCat.

In Cebu Ferries Corporation, WG&A passed on their old liners and the former regional ships of William Lines and CAGLI. To top it and to challenge the jewels of TASLI which were ruling the prime Visayas-Mindanao route, the Cebu-Cagayan de Oro route, CFC fielded the Our Lady of Lipa and later the Our Lady of Good Voyage, a small William Lines liner which was the former Mabuhay 6. So as not to lose in the one-upmanship, Sulpicio Lines then fielded the even bigger Princess of the Ocean which was really a liner in appointments, speed and size.

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Photo credit: Ray Smith

The Our Lady of Lipa and Princess of the Ocean were both capable of 20 knots and so the races between Cebu and Cagayan de Oro began. The bragging rights comes from which ship will arrive Cagayan de Oro port first. In Cagayan de Oro that matters because maybe half of the passengers will still be travelling long distances to Bukidnon, Davao, Cotabato, Gensan and Lanao (the farthest I heard was still bound for Sarangani islands). If one is able to hitch to a connecting ride before dawn then he will have lunch at home even it is as far as Davao. In won’t be dark already when the passenger reaches Sarangani province unlike before (if one is late and there are no more trips then one sleeps in Gensan).

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And reports of 2:00 or 2:30 am arrivals (or even earlier) began filtering back. From an 8pm departure in Cebu! There was no way the sister ships of Trans-Asia Shipping Lines can match that. In comfort and accommodations they probably can match ships fitted as liners (except in speed and maybe in the restaurant). But Cebu Ferries Corporation also has a more extensive route system and in conjunction with WG&A liners passing through Cebu their frequencies can’t be matched. WG&A liners acting also as Visayas-Mindanao liners were simply untouchable like the SuperFerries emanating from Cebu. Or when they use the likes of Our Lady of Sacred Heart in a Vis-Min route. Maybe TASLI then were asking what sea god they have crossed to deserve such a fate and tribulation!

Trans-Asia Shipping Lines tried to fight back (and show they are not cowered). They acquired three more ships in a short stretch between 1997 and 1998, the Trans-Asia 2, the Asia Malaysia and the Asia South Korea. However, they lost two ships to accidents in 1999 and they sold three more ships early this millennium. There was simply a surplus of bottoms in the Visayas-Mindanao routes so there was overcompetition (contrary to what Myrna S. Austria claims but those knowledgeable of Visayas-Mindanao shipping will easily contradict her). A lot of regional shipping companies failed in this period. The growth of others were stunted and that included Trans-Asia Shipping Lines.

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Soon, even Cebu Ferries Corporation stepped back, gave up routes and sold ships. It was not simply the effects of overcompetition on them. The “Great Merger” unraveled and the Chiongbian and Gothong families pulled out and they had to be paid for their shares and so still-good ships were thrown to the torches of the breakers. Later, reeling from the resurgence of competitors, Cebu Ferries Corporation gave up completely and its remaining ships were brought to Batangas (and becoming “Batangas Ferries”, jokingly).

But Trans-Asia Shipping Lines suffered a lot. For ten years from 1998 they didn’t acquire any ships until when the purchased the Trans-Asia 3 in 2008. From 2010, Trans-Asia Shipping Lines acquired four more ships. But the difference this time were they were purchasing ships discarded by others (that was the pattern of their clients Cokaliong Shipping Lines and Roble Shipping Lines before). It seems they have forgotten the formula which brought them to the top. As I observed, they were not the same company after that bruising battle with Cebu Ferries Corporation. The “Great Merger” was actually a curse to our shipping as it turned out. Not only to TASLI but to the whole shipping industry. Shipping companies that were growing were blighted by them, some were even snuffed out completely.

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While Trans-Asia Shipping Lines still added four more ferries from 2010, they also lost about the same number through disposals and an accident, the sinking of the Asia Malaysia. And then they sold to the breakers their former jewels which might have weak engines already but the interiors were still superb.

Now one of the cast-offs they bought, the Trans-Asia 5 now just sails as a Cargo RORO ship and another has fast-weakening engine, the Trans-Asia 9 (the Captain of her as Our Lady of Good Voyage admitted to PSSS that its engines were weak already). Trans-Asia Shipping Lines severely lacks ships now and their fleet is beginning to get gray. They still try to hold to the premier Cebu-Cagayan de Oro route but challengers are now baying at their door.

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I hope they have a renaissance. And like in the 1970’s, 1980’s and 1990’s that they sail boldly on to a new dawn.

The Times of Trouble for Philippine Liner Shipping in the Past

In Philippine liner shipping, obviously the first time of trouble was when the Pacific War erupted after Japan attacked the Philippines and the United States. Liners were requisitioned by the US on the promise that it will be replaced when the war ends. The order then was if the ship cannot reach Australia it has to be scuttled to prevent it from falling into the invader’s hands. Most of our liner fleet then was lost to scuttling and to enemy fire. Some of it were captured and were pressed into enemy service and when Japan was already losing they sank into the bottom of the sea due to US submarine and aircraft attacks.

These liners that were lost during the Pacific War were good liners and many were built in foreign shipyards just in the Commonwealth Era which means they were still new. The older ones were mainly built in the 1920’s. And they were not necessarily small. Many of the good liners before the war were in the 80-meter class (when internationally a 120-meter was already grand).

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A prewar liner, the MV Don Isidro (Photo credits: Commerce and Gorio Belen)

When the US replaced our lost fleet as promised the number might have been right but the quality is different. The former “FS” ships were not the equal of our former liners even in size and to be able to use those they have to be converted and refitted first as they were not really liners but basic cargo ships. “FS” meant “Freight and Supply” after all.

Former “Y” ships were also given as replacement and these were former tankers but still a handful were converted to passenger use by removing the tanks. The former “Y” ships were slightly smaller than the former “FS” ships. For the lost regional ships, the US gave as replacement the former “F” ships, both the steel-hulled and the wooden-hulled types. Former minesweepers were also given as replacement. None of them were passenger ships to begin with and so conversion and refitting still had to be done.

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A former “FS” ship (Photo credits: Philippine Herald and Gorio Belen)

To replace the bigger liners, the US gave Type C1-M-AV1 , Type C1-B and Type N3 ships as replacements but those were also cargo ships and not liners and so they also have to be converted and refitted. None of all these types can match the luxury and comfort of our prewar liners. Were we shortchanged in the deal? I think the answer is obvious. We had purpose-built liners before the war and the replacement were surplus cargo ships that had no use for them anymore because the war has already ended.

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A former C1-M-AV1 ship (Photo by Rufino Alfonso)

The second times of trouble for Philippine shipping was the crisis decade of the 1970’s when continuous devaluation of the peso dominated the economic situation. It was the time that taking out big loans was fraught with danger since nobody can foresee when will be the next devaluation (which means in peso value the loan balloons). Because of this uncertainty and risk, the taking out of loans to order brand-new ships completely stopped. There were no more brand-new ships after the Cebu City of William Lines came out in 1972.

If the mid-1960’s was marked by acquisition of second-hand passenger-cargo ships (most were not really liners) from Europe, in the 1970’s the shipping companies were looking for right direction. Inadvertently, Sweet Lines showed the way with the acquisition of the Sweet Faith in 1970 and the Sweet Home in 1973. This started the era of fast cruiser liners in our seas. However, due to the fogs of uncertainty in the economic climate, few realized this was the new paradigm, the fast cruiser liners.

Sweet Lines ad - "Inimitable Mates" (Sweet Home and Sweet Faith)

Photo credit: Jon Saulog

Among the liner companies, only William Lines took up the challenge early with the Cebu City. In the middle of the 1970’s, Sulpicio Lines followed suit and acquired fast cruiser liners beginning with the Don Sulpicio and Dona Ana. William Lines also kept in step by successively acquiring fast cruiser liners which were named after cities, the Manila City, Cagayan de Oro City, Ozamis City, etc.

What happened then to the other liner companies especially the other top guns? In the decade of the 1970’s, Compania Maritima was already in its death spiral but few realized it then because they were held in such high regard because they have been No. 1 for so long. Actually, there might have a death wish in them already. Compania Maritima never bought another liner after the second-hand but big Luzon in 1970 until their demise in 1984. At the same time, their ships were sinking with alarming regularity and mostly by wrecking.

Meanwhile, Aboitiz Shipping Corporation became heir to the PSNC (Philippines Steam and Navigation Company) fleet and operations. The Laurel-Langley Treaty dictated that in 1974 the Americans no longer have the right to do business here as if they are Philippine nationals (they have a right previously because of the Parity Amendment to the Philippine Constitution). But after 1974, Aboitiz Shipping Corporation did not buy a liner anymore and just relied mainly on a few small liners plus the trio of liners ordered by Everett Steamship in Japan in 1955 and the former “FS” ships they already had and the once from PSNC. These ships were already showing signs of mortality as they were already entering their fourth decade of service.

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A liner from Everett SS that went to Aboitiz (Photo credit: Aboitiz Transport System)

Sweet Lines, after acquiring liners that were among the biggest and the best for a decade which pulled them up in the totem pole of liners had the puzzling decision to just buy small liners in the later 1970’s. This happened in a situation when their liners from Europe were already over two decades old. In those times due to weaker metallurgy and finishing, 30 years is almost the longest service that can be expected from liners built in the 1950’s and so this means Sweet Lines has a future problem in the 1980’s. Did Sweet Lines think the 1980’s will be better?

The combined Carlos A. Gothong Lines Inc. (CAGLI) and Lorenzo Shipping Corporation, successor companies to the broken-up Carlos A. Go Thong & Co. also had the same policy decision as Sweet Lines, that is to just buy small liners (many can even be just classified as passenger-cargo ships). Meanwhile, the old Escano Lines also stopped buying ships in 1974 like Aboitiz when they acquired the small Katipunan.

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The former MV Katipunan (Photo credit: Edison Sy)

All in all, from 1973, only Sulpicio Lines and William Lines acquired big, fast cruiser liners. Compania Maritima, Aboitiz Shipping Corporation, Sweet Lines, Carlos A. Gothong Lines, Lorenzo Shipping Corporation all stopped buying big liners especially the fast cruiser liners (and that type is beyond the means of minor liner shipping companies including Madrigal Shipping). Maybe one reason is the steep cost already of liners because of devaluation, maybe it was the general economic difficulties which produce conservatism in businessmen, maybe it was also procrastination and hoping the next decade will be better.

And so it was not a surprise that in the 1980’s, from a rough equality of the top companies after the break-up of Carlos A. Go Thong & Co. in 1972, the liner scene was dominated by Sulpicio Lines and William Lines because they were the only ones which bet on the new ruling paradigm, the fast cruiser liners. The other simply lost their way or maybe even their enthusiasm and were just waiting for better days.

1978 1207 William Lines

Photo credits: Phil. Daily Express and Gorio Belen

I must admire not the depth of the pockets of the two but the Japanese agents which bet and trusted Sulpicio Lines and William Lines. I think that was the critical factor why the two kept getting fast cruiser liners even though the economic climate was not good over-all. Sulpicio Lines continuously acquired retired cruisers from RKK Lines and William Lines from Arimura Sangyo (the later “A” Line). Incidentally, both are Okinawa shipping lines. So their fast cruiser liners competed in Japan and they continued their rivalry here.

Don Sulpicio (Doña Paz) and Doña Ana (Doña Marilyn)

Photo credit: Jon Saulog

The next decade, the 1980’s, was even more difficult and it resulted in the death of so many liner companies, both major and minor. A new leading paradigm will emerge then, the RORO liners. Some majors will awaken from their stupor and try to compete again. Among them were Aboitiz Shipping Corporation and Carlos A. Gothong Lines Inc. Negros Navigation will also be among them after they also slowed down in buying cruisers (they were not in danger then because their cruisers liners were new and they had a monopoly of Bacolod port).

And that is how the chips broke in the 1970’s. Another time of trouble will happen three decades later but then that is another story worth another article.