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 Ship That Might Have Eluded the Grasp of TASLI But Helped Medallion Transport Move in Rank

In this decade, Trans-Asia Shipping Lines Inc. (TASLI) has been buying the discards of the other shipping companies. They acquired the Trans-Asia 5 from Carlos A. Gothong Lines Inc. (CAGLI) which was the former Butuan Bay 1. From Gothong Southern Shipping Lines they acquired in a package deal the Trans-Asia 8 and the Trans-Asia 9 which were the former Dona Rita Sr. and Dona Conchita Sr., respectively. And from Philippine Span Asia Carrier Corp. (PSACC), they acquired the Trans-Asia 10 which was the former Princess of the Earth.

In those acquisitions, Trans-Asia Shipping Lines batted only two out of four as the Trans-Asia 5 and the Trans-Asia 9 did not perform according to expectations. After publicized episodes of her single engine conking out, MARINA (Maritime Industry Authority), the maritime regulatory agency, more than gently suggested something radical be done about the Trans-Asia 5 (actually it was the threat of the cancellation of her Certificate of Public Conveyance). Now she is just a RORO Cargo ship albeit a successful one and her superstructure has already been modified and the passenger accommodations had already been taken out.

Trans-Asia 9 now has episodes of late arrivals and word of it has began to seep out. Even as Dona Conchita Sr., it was already known that her engines were no longer than strong and that was even admitted by her Captain then. For the two ships it is a big sayang as Trans-Asia Shipping Lines really poured money into the two vessels so that they will be good overnight ships (the Trans-Asia 5‘s interiors were superb). However, it was the old engines that failed them.

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Photo by James Gabriel Verallo

These gambles of Trans-Asia Shipping Lines backfired on them. After forgetting what brought them to the top before which was buying good ships from abroad, both cruisers and ROROs, it seems they have lost their leadership of the Visayas-Mindanao routes to Cokaliong Shipping Lines Inc. (CSLI) which made it a habit to buy ships from abroad every two years. Now their fleet looks modern by local standards while TASLI’s increasingly looks old.

There is actually nothing wrong with buying cast-offs of other shipping companies. It actually depends on the ship one is buying. The Trans-Asia 8 was predicted to be good for them as this ship had a good record in Gothong Southern and it is not yet that old. The Princess of the Earth was also a reliable ship (except recently) for PSACC although she is also getting on in years now.

There was actually a good cast-off that eluded the grasp of Trans-Asia Shipping Lines. This was the Love-1 of Moreta Shipping Lines of Manila. When I first saw her docked in Ouano for refitting, I thought she was destined for TASLI. Her length, her size and her speed all screamed she was perfect for the routes of TASLI. This ship was not too old and in Moreta Shipping Lines she was not used heavily because she came when the routes of Moreta was already winding down because of the assault of the intermodal system. Late in her career in Moreta, she was sailing just once a week.

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Photo by Edison Sy

The Love-1 was the former Ferry Okiji in Japan of the Oki Kisen. She measures 93.1 meters (88.3 meters in LBP) by 15.3 meters by 6.0 meters. The length is perfect for TASLI although the breadth is maybe less than what they might desire but then that breadth is better than the 15.0 meters of Trans-Asia 2 and that ship has just an LOA of 88.0 meters. So that means Love-1 is a little bigger than Trans-Asia 2, a ship that TASLI loves.

The design speed of Love-1, the maximum speed that can be sustained when new was 18.5 knots while the design speed of Trans-Asia 2 was only 16 knots. Love-1‘s Daihatsu engines are bigger than the Daihatsu engines of Trans-Asia 2. It is 8,400hp vs 6,000hp. Trans-Asia 2‘s passenger capacity is 655 while the passenger capacity of Love-1 was 790.

Actually, Love-1, though originating from Manila was not a true multi-day liner. She was actually an overnight ship as the length of the voyages of her routes takes less than a day (an overnight run plus a few more hours which was similar to the former WG&A ferries that did the Dumaguit and Roxas City routes). In accommodations, though TASLI is known for top class she is not that far behind. In Ouano, it seemed most of the work done in Love-1 so she will fit the needs of buyer Medallion Transport was the construction of wing passenger ramps which is de rigeaur for Cebu ships and the closing of the side ramps.

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Photo by homepage2.nifty

The Ferry Okiji was built by Kanda Shipbuilding Company in Kure, Japan in 1979 (the same year Trans-Asia 10 was built). In Japan she had 2,584gt which rose to 3,184gt here because of the additional metal for the Economy class. Her net tonnage is 964 which looks to be understated. Since she was doing the Okinawa route in Japan which is in the open sea, her sides are high. Her permanent ID is IMO 7927099.

This ferry was sold to Moreta Lines in 2004, a few months after the Roxas-Caticlan route that connected Mindoro and Panay islands was opened. She mainly did the Dumaguit and Roxas City route for Moreta Shipping Lines although she was also used for the San Jose, Occidental Mindoro route of the company. In the middle of the 2000’s, WG&A along with Negros Navigation was already vacating Dumaguit and Roxas City routes due to the onslaught of the intermodal trucks and buses.

Moreta Shipping Lines still tried though but even before the end of the last decade it was obvious the ship from Manila won’t last against the buses and the trucks which were multiplying in the route year after year. Love-1 found herself increasingly not being used and at times she was just tied up in North Harbor along with the other ships of the company which were Nikki and Conchita.

Soon, Moreta Shipping Lines offered for sale her three ferries to just concentrate on container shipping. In 2011, Conchita went to Besta Shipping Lines and became the Baleno 168. In 2013, in a package deal, Love-1 and Nikki went to Medallion Transport which was a surprise since before this all the Medallion Shipping had were ships the size of basic, short-distance ferry-ROROs which they try to fit on overnight routes. The only bigger ship they had was the double-ended RORO Lady of Miraculous Medal which is 46.0 meters in length.

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Lady of Love in Cebu for conversion to Lady of Love (Photo by James Gabriel Verallo)

The Love-1 became the Lady of Love. I had a laugh when I heard the name from her guard in Ouano. At first I am not sure if he was pulling my leg. But the name became true and she became a Medallion Transport ferry doing the Cebu-Palompon route which was a new route for the company. This route was overlooked by the other shipping companies doing the Cebu-Leyte routes. Few realized it then that it was a good alternative to the Cebu-Ormoc route like the Cebu-Baybay route.

Cokaliong Shipping Lines was the one doing the Cebu-Palompon route after the smaller shipping companies on that route sunk. But they had no ship permanently fielded there and were just using the 7th day of their ships. Lady of Love has an easy entry because she can match the ships of Cokaliong toe-to-toe and she was even better than the lesser ships of CSLI. With rolling rates more competitive than those offered in Cebu-Ormoc route, soon her car deck was full of trucks and other vehicles.

Passengers also began to notice she was superior than the ships of Roble Shipping and Lite Ferries that were doing the Cebu-Ormoc route. Even her passenger fares were competitive. And she is fast. I once saw her docking in Cebu at 1:30 in the morning. I thought those passengers still going to the northern and southern tip of Cebu have the chance to arrive there by breakfast time should they decide to disembark and go to CNBT or CST.

Now the route of Roble Shipping to Naval, Biliran is already kaput. For rolling cargo, the Palompon route to Biliran is a good alternative especially if the rates are cheaper. Besides, Palompon is also a good and nearer entry to the towns of the northwest corner of Leyte island which has lost their ships from Cebu. Palompon is also a good entry to the towns of Isabel and Matag-ob.

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The Lady of Love proved to be an ace for Medallion Transport which now has a roaring route to Palompon. She also elevated Medallion Transport to the first rank of Cebu-Leyte shipping companies from a second-run position. I even wonder now if Roble Shipping or Lite Ferries can claim that they have a ship better or equal than Lady of Love. The Lady of Love became the queen of the Cebu-Leyte ships and ironically she is not even doing the premier Cebu-Ormoc route.

I just wonder why TASLI did not make a bid for Love-1. Was the package for Nikki a deterrent? But that can be sold if they do not want it (it is too small for TASLI maybe except for their Tagbilaran-Cagayan de Oro route).

Now TASLI obviously looks that they lack passenger ships. I just wonder had the two ships instead went to them. Without the two Medallion Transport can’t claim parity with Roble and Lite in the Cebu-Leyte routes. And TASLI would not have been wanting for passenger ships and they might have had a ship to match the Filipinas Cebu of Cokaliong in the Cebu-Iloilo route.

Maybe it was not in the cards that Love-1 would go to TASLI. Maybe what was in the cards is Medallion Transport would reach first rank in the Cebu-Leyte routes through the Lady of Love and Lady of All Nations (the name of the Nikki in their fleet).

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The Lady of Love certainly helped Medallion Transport establish itself. But then good things certainly does not last and last year engine problems disabled the ferry and she was laid up for half a year and the Lady of All Nations had to carry the load for two routes, the Palompon and the Bato routes. That was certainly a heavy load for an old ferry which was also laid up for half a year after her own share of engine troubles.

The PSSS (Philippine Ship Spotters Society) was told the Lady of Love was waiting for parts from Japan. Well, if re-manufacturing of parts are needed the waiting time is certainly months long. I was told only Japan and Singapore do this kind of job with the former supposedly having better quality. So, for the last few months, the Lady of Love was laid up in Ouano north of the E. Ouano House. She was monitored to do sea trials where she did 15 knots until she “hibernated” again.

Then suddenly a news exploded! The Lady of Love will be doing a Cebu-Surigao route and enter Mindanao and that was just a few days ago. That route was the base of the weakest ferries of Cokaliong Shipping Lines as they have a monopoly of this route after their competitor Cebu Ferries quit the Vismin routes to go elsewhere supposedly for greener pastures.

But not to be outdone and become the butt of jokes, Cokaliong suddenly diverted a good ferry of theirs, the Filipinas Cebu which was formerly doing a Cebu-Iloilo route to run head-on with the Lady of Love (therefore the match happened in another route). So the languid Cebu-Surigao route suddenly had a marquee match-up. The Lady of Love is thought to be the flagship of Medallion Transport, she being their best ship. Meanwhile, many also think the Filipinas Cebu is the flagship of Cokaliong Shipping given her name and route assignment.

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In terms of speed like what was shown in their first night match-up, the Lady of Love will have a slight edge having a higher design speed although she is the older ship. In amenities, the Lady of Love will probably not cede anything being formerly a Manila ship and the best ship of Moreta Shipping. A member of PSSS, James Verallo said in terms of restaurant and food, the Lady of Love has the edge. In passenger service and cleanliness, Cokaliong Shipping is known for that and I wonder if the Lady of Love will be a match.

All in all, the two ferries might be able to slug it out toe-to-toe and so the decisive thing that another member of PSSS Badz Bado weighed in might be the fares. I myself might add the cargo rates can also be decisive. Medallion Transport has the record that when it entered Palompon she suddenly offered the cheapest rolling rates and it was Cokaliong which she challenged there. So this new match of them is like a rubber match. It seems Medallion Transport does not fear challenging Cokaliong in its home route.

I commend Medallion Transport for having the guts to enter the Vismin route, stirring the pot and making it lively again after years of stagnation because of the tailspin of Cebu Ferries and the obvious lack of gusto shown by Trans-Asia Shipping in the last few years. I also criticize two Cebu shipping companies that were ahead of Medallion Transport but which pussyfooted a lot. The two are Roble Shipping and Lite Shipping.

Long ago, the former has a franchise to Nasipit but didn’t serve it. Lately, they had a ship named after Oroquieta in Misamis Occidental, the Oroquieta Stars but they were just using it in a Leyte route. So until now that company has no route to Mindanao when to think the gates to the Vismin route had long been left open by Cebu Ferries.

Meanwhile, Lite Shipping has been able to open two Vismin routes. One of this is their route to Plaridel in Misamis Occidental which seemed to form part of the reason of the demise of Palacio Lines. But in the over-all scheme of Mindanao, Plaridel is just a minor route. It only becomes greater because it also connects to Siquijor and Bohol and becomes the connection of the migrants of the two provinces to Mindanao.

More than a year ago, Lite Shipping used their old Lite Ferry 8 to open a route to Cagayan de Oro. I applaud them for their efforts to extend the life of that old ferry which they even re-engined but for that route that ship is outgunned and maybe that was the reason they have to offer half off the fares. For the size of Lite Shipping which is in a race to match the number of ferries of Montenegro Shipping Lines, they should already be able to afford a ferry worth the premier route to Mindanao from Cebu.

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Photo by John Carlos Cabanillas

I just hope that with this move of Medallion Transport those two mentioned companies will feel challenged. It is certainly time for them to enter new routes and ports. And if they need some “brave pills”, they can maybe ask who is the supplier of that to Montenegro Lines which suddenly entered the dangerous and overcrowded Zamboanga-Jolo route. Well, Roble also tried to enter that route via the Theresian Stars shipping company but then they have a powerful politician of Sulu as partner to that venture.

Who will be the winner then? It will be the riding public and the shippers, of course, as usual.

Container Ships Also Sink Our Liners

In the past, before 1980, there was no conflict between the our liners and the container ships. First, container ships did not exist before the late 1970’s. Second, before that time, general cargo ships were not many as it is our liners that were mainly carrying the inter-island cargo that should be transported fast and were not in bulk. That was the reason why even though our production and the number of people were not yet as high like today, there were so many liners existing with as high as 90 liners at its very peak.

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Gorio Belen research in the National Library

In the early 1970’s, the Sea Transport Company came into existence. What was notable for this new company is they offered regular express cargo service to Mindanao which means a direct service and aside from loose cargo, their ships were able to carry small container vans which were non-standard as in they were offering 8-foot containers which they themselves designed (it was rectangular in shape). In due time, they also shifted to standard container vans and they fielded pure container carriers.

In 1976, Aboitiz Shipping Corporation converted one of their general cargo ships, the P. Aboitiz into a container carrier. Conversion like this was not difficult because only some internal structures need to be modified so a container van can be slot in and that also means modifying the holds and the hatches. The grabs of the booms also have to be modified by a bit so it can handle a container van.

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Gorio Belen research in the National Library

In 1978, containerization was already in full swing when Aboitiz Shipping Corporation added more container ships and William Lines Incorporated followed suit. The next year, in 1979, Sulpicio Lines Incorporated also joined the bandwagon to be followed in the next year by Lorenzo Shipping Corporation which had already split from its merger with Carlos A. Gothong Lines Inc (CAGLI). Negros Navigation Company also joined this new paradigm in 1980. In 1981, Sweet Lines Incorporated also followed suit but they used their old company name Central Shipping Corporation. Among the major liner companies then, it was only Compania Maritima which did not join this new paradigm.

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Gorio Belen research in the National Library

These new container services offered direct sailings as in there were no intermediate ports. With direct service, the container ships might be a little slower than the liners (except for the fast cruisers) but their transit times were not worse than the liners (except to Cebu) because they don’t lose time in an intermediate port or ports. With the speed, convenience, security (no pilferage), lack of damage and contamination, soon the shippers were already shifting en masse to the new container services.

In the liner crisis of 1980 when many liners were deactivated and laid up, it seems the main cause of that was the emergence and immediate success of the container ships and container shipping. Maybe the liners suddenly found they don’t have enough cargo and hence they can’t maintain the old sailing schedule and from the outside it looked like that suddenly there was a “surplus” of bottoms (actually the liners complained of that).

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Gorio Belen research in the National Library

In December 1979, the first RORO liner, the Dona Virginia of William Lines came. This RORO and those that came after her were capable of carrying container vans especially the XEU or 10-foot container vans that can be loaded aboard by the big forklifts. Soon even the fast cruiser liners were also carrying container vans atop their cargo holds especially at the bow of the ship. Some can also carry container vans on a platform in the stern.

Locally, I did not see a new paradigm take hold as fast as container shipping. The ROROs even took longer to be the new paradigm. In containerization, there was even a rush to convert general cargo ships into container ships. All the “new” container ship of Lorenzo Shipping Corporation were converts at the start. The other container shipping companies bought general cargo ships from Japan and converted them into container carriers. Our first container ships looked like general cargo ship unlike the modern container ship which does not look like general cargo ships (and nor can they handle loose cargo).

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In just a little over a year William Lines had 5 container ships (Gorio Belen research in the National Library)

The emergence of the RORO liners even pushed containerization faster as that new kind of ferry is ready-made not only for vehicles or rolling cargo but also for container vans, wheeled in atop chassis (which means atop trailers) or not (if not wheeled then big forklifts “wheeled” them in). There were not yet reach stackers in the early years of our containerization to handle the container vans.

In the 1980’s and the 1990’s, the liners can still hold off the container ships. The reason was there were no budget airlines yet (Philippine Airlines fares then were really stiff) and there were no intermodal buses yet in the bulk of the islands (it was only strong in Eastern Visayas, their pioneer area). And liners can still pack in the passengers (even up to “overloading” or overbooking point) because people has already learned how to travel and there was a great push for migration to Metro Manila (which later led to the overcrowding of this metropolis).

However, when budget airlines and the intermodal buses came in droves, the passengers of the liners dropped. The 2,000 to 3,000 passenger capacity slowly became “too big” and hence the national shipping companies no longer fielded liners with capacities such as this in the new millennium. Aboitiz Transport System (ATS) also tried to reduce passenger capacity and increase cargo capacity by converting some of their liners to have two decks for rolling cargo like what they did in SuperFerry 12, SuperFerry 9 and SuperFerry 2.

Superferry 12

Photo by Edison Sy

Can the liners compete with container ships when the passenger demand dipped? The answer is a plain “No way”. Liners usually have more than three times the horsepower of a local container ship (and it is single-engined which means less spare parts are needed) and yet the local container ship usually have three times the container capacity of a RORO liner. This even became more pronounced when the regime of high oil prices came in the first decade of this millennium. Per fuel prices alone, the container ships can carry each container van much cheaper than what a liner can.

Container vans also do not need the amenities needed by the passengers. Moreover, it does not need the service expected of the passengers which need to be fed and be given more than decent accommodations plus some entertainment. Because of that, the crewing needs of a liner is far higher than that of a container ship. All of those means more expense of the part of the liner company. Besides, a RORO liner is more expensive than a container ship for the same size and its insurance is higher.

Ever since the 1980’s, even when the passenger demand was still great, the national shipping companies were earning more from cargo than their passengers. That is true even today when 2GO admits that almost 70% of their revenues are from cargo (and to think under their roof is SuperCat which widens the passenger revenues). Definitely their investment for liners is greater than their cargo ships. Maybe it was only loyalty to their passengers and passenger shipping why they were not quitting this segment. Maybe it is also because of inertia which means just keeping doing the old things.

Lorcon Dumaguete assisted by tugs

If we look at the recent years we can see that for every liner acquired at least 7 container ships were acquired and this is even a conservative estimate. If we look at the last 10 years starting from 2006, only 11 liners came to our shores and that includes the 3 Cebu Ferries, two of which are still used as overnight ships although already converted into small liners. Meanwhile, MARINA registered 80 or more newly-arrived container ships in the same period. These are the container ships of Oceanic Container Lines, Sulpicio Lines/Philippine Span Asia Carrier Corporation, Lorenzo Shipping Corporation, NMC Container Lines, Solid Shipping Lines, Negros Navigation/Caprotec Corporation/2GO, MCC Transport Philippines (MCCTP), Moreta Shipping Lines, Meridian Cargo Forwarders, Seaview Cargo Shipping Corporation, Escano Lines/Loadstar Shipping Company and West Ocean Lines and Transport acquired in the last ten years. Now how many container lines is that compared to a sole passenger liner company?

There are few liners sailing now and all are under just one company which is 2GO (since Romblon Shipping Lines has already quit). Meanwhile, container ships are still mushrooming and more container shipping companies are joining the field. Even 20 years ago there were already more container ships than liners. Now the container ships are already outstripping the liners in number. And the trend holds true year after year.

The question is why? Well, the simple answer is the shipping companies won’t invest in liners as it does not make sense. More revenues can be earned from container shipping at less investment with less hassles from regulations and supply needs (like the food needed by the passengers). So why would they enter passenger liner shipping? Better “pets” like containers vans rather than people like the passengers who can raise a ruckus and if the ship sinks then goodbye to all the advertising and service spent for the goodwill. If a cargo ship sinks, the uneducated public and the media almost won’t mind at all.

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A Cargo RORO LCT by Asian Shipping Corporation

If cargo is the bread and butter of shipping it will now go to the container lines because they can actually offer the lower shipping rates. If not it will go to the intermodal trucks which has even lower rates. And arriving now recently are the Cargo RORO LCTs which carry container vans (even from Manila) like those of Roble Shipping Incorporated, Ocean Transport and Asian Shipping Corporation. This new paradigm can offer even lower rates than the container ships.

Sometimes it looks like liners are already passe. But I don’t want them to go because I prefer them over planes and the intermodal buses are sometimes too tiring especially those who are no longer young.

Will the liners survive? Now, that is one question I would not like to answer.

The MV Nikki (a.k.a. MV Lady of All Nations)

When the deadly-for-shipping decade of the 1980’s ended (technically, it ended only at the end of 1990), we still had a few former FS ships sailing. Maybe it was because we really lacked ships them and getting loans was really difficult and interest rates were very high. Maybe, the penchant of Filipinos to squeeze the last ounce of life from mechanical things was also a factor. We are also sentimental in letting go of things that have served us for so long.

One of the last former FS ships still sailing then was the MV Edward of William Lines. The ship was running the short Manila-Tilik (Lubang Island) and Manila-San Jose (Occidental Mindoro) routes. She is running this route but at times it is another former FS ship, the MV Don Jose I, which is in that route. However, it is the MV Edward which is remembered more in the big town of San Jose. She was actually the last on the route, too. This route is a steel-hulled ferry monopoly at that time by William Lines Inc. after other liner companies withdrew or were gone from shipping. They were also able to block the entry of a new competitor. Beside the steel-hulled ferry there were also wooden motor boats (the batel) plying the route but they concentrated on cargo and do not have very regular schedules (it will depend on how full they were and also on the weather).

In 1992, with the coming of the new administration of President Fidel V. Ramos and his call for shipping modernization, there seems to be a sudden realization by the shipping companies still sailing former FS ships that they finally have to go. There were just a few former FS ships still sailing then and their lives were prolonged by retiring other FS ships and cannibalizing them for parts. Their ranks was also further diminished by the very strong Typhoon “Mike” (Typhoon “Ruping”) that visited Cebu in November 1990 which was very deadly for Cebu shipping.

Instead of acquiring a new ship for the Manila-Tilik and Manila-San Jose routes, William Lines instead decided to withdraw from the route. But, instead of holding on to their residual rights on the route, William Lines instead welcomed and helped a successor in the person of Dr. Segundo Moreno who was previously not in shipping. Dr. Moreno established the shipping company Moreta Shipping Lines and he purchased the MV Ariake Maru No. 6 from Japan. With this changeover, San Jose and Tilik was able to re-establish their regular connection to Manila. This was important as they were dependent on the national capital for manufactured goods and Divisoria and Navotas were the main markets for their agricultural and sea products.

Unlike the former FS ships, MV Ariake Maru No. 6 is a RORO (Roll-on, Roll Off) which means she can load vehicles. Even when used in break-bulk cargo, her main use, a RORO is easier to load and unload and forklifts ease the operation especially in handling heavier cargo. It also means a RORO is less dependent for the services of manual laborers, the porters. MV Ariake Maru No. 6 was actually not bigger than the former FS ship she was replacing but a RORO has a taller cargo deck.

MV Ariake Maru No. 6 has the permanent ID IMO 7632307. She was built by Hayashikane Shipbuilding & Engineering Company in their Nagasaki shipyard in Japan in 1977 for Ariake Ferry. She measured 54.0 meters by 12.8 meters with a Gross Tonnage (GT) of 695, which are all about the same as an FS ship. However, her DWT (Deadweight Tonnage) of 284 tons was way less than the 711 tons of MV Edward, a lengthened FS ship measuring 62.9 meters by 9.8 meters. She was equipped with two Niigata diesel engines with a total of 2,400 horsepower. Her original top speed in Japan was 13.5 knots.

Arriving for Moreta Shipping Lines, she was renamed the MV Nikki and she was converted into an overnight ferry equipped with bunks with a local passenger capacity of 440. She was two-class ship: an airconditioned Tourist with free linen and pillow and a better toilet and bath and an open-air Economy with no free “beddings” (linen). She was considered by her passengers to be more comfortable than the former FS ships she was replacing. As to speed, she was not faster than the former FS ships which only had less than ½ of her engine power at 1,000 horsepower.

Maybe her lack of speed was due to what I heard that she has a spoon hull. That means the design of her hull is similar to a bathtub. Maybe in Japan she was only used for very short-distance routes where the shape of the hull will not matter. Incidentally, this hull is similar to the hull of the barges and LCTs. Assigned to the 120-nautical mile Manila-San Jose route she can’t meet the promised 12-hour sailing time especially when swells are around. Two years after fielding, she settled on a 14-hour sailing time for her route. So sailing at 6pm means a stomach already looking for food once one disembarks.

In Moreta Shipping Lines, the Tilik and San Jose routes destinations were also split into separate routes. However, when the MV Kimelody Cristy arrived for Moreta Shipping Lines in 1994, MV Nikki became a dedicated Tilik (Lubang) ship. There her lack of speed did not matter as Lubang island is just a short distance from Manila. A 10pm departure to that port is already assured of a dawn arrival. 

Moreta Shipping Lines and MV Nikki did good sailing for about a decade or so. But in due time, their Mindoro routes were slowly taken over by the intermodal trucks and buses that was using the short Batangas-Abra de Ilog (Occidental Mindoro) route. As always, the advantage of the intermodal were 24-hour departures and direct delivery to the particular towns or barrios. With such changes, Moreta Lines had to develop other routes and they tried the Panay island routes abandoned by WG&A. But soon, they found out there was nothing much left there and the intermodal was already ascendant there, too.

The staple route of Manila-Tilik by MV Nikki was affected in another way. Slowly, the motor banca to Lubang from Nasugbu in Batangas became a competitor. With a combined bus and banca, daytime trips became possible with direct disembarkation (unlike the RORO which only dock in Tilik port). The syndrome was much like how the motor banca drove out the RORO in Puerto Galera. Tilik port is not located in either town of Lubang or Looc and the local road was not good either.

By the last half of the 2010’s, the ships of Moreta Lines were barely sailing. At times, only one of their three ferries might be sailing. Reading the writing on the wall, they started cargo shipping in 2009. Not long after, they decided to get out of passenger shipping altogether, sold their passenger ships and used the proceeds to acquire more cargo ships. They then became a pure cargo shipping line (this trying to survive as a shipping line was one characteristic missing in their benefactor William Lines Inc. which decided to go down quietly).

MV Nikki came to Medallion Transport in 2012 which was soon followed by the MV Love-1 of Moreta Shipping Lines also. The two ships were used by Medallion Transport to develop new Medallion routes between Cebu and Leyte together with two other ships (always less one because one is used in Masbate). In Medallion Transport, the MV Nikki was renamed to MV Lady of All Nations and she was used to grab traffic from a competitor in the Cebu-Bato route. Medallion Transport was already sailing this route before but they were just shoehorning short-distance ferries in this overnight route (it has also day trip on the reverse). With the fielding of MV Lady of All Nations, Medallion Transport finally had a true overnight ship in this route, their pioneer route to Cebu from their original home port of Bato, Leyte.

MV Lady of All Nations is still the Medallion Transport mainstay in the Cebu-Bato route. The competition is suffering because it is using single-class cruisers (admittedly, they are faster, however). Meanwhile, Medallion Transport retrofitted MV Lady of All Nations to have Cabin class and Deluxe class (which approximates the Suite class). So, she is now a four-class ship. Five, if the Sitting Economy, a Cebu-Leyte and Cebu-Bohol fixture is included. Her fares starts at P245 per person which is very cheap for a 55-nautical mile distance. Actually, the Cebu-Bato route is known for having the cheapest fares between Cebu and Leyte. The Tourist fare of Ormoc will actually be already Cabin class in MV Lady of All Nations.

In her last drydock in 2014, two years after coming to Medallion Transport, the MV Lady of All Nations spent some time in Star Marine Shipyard in the shipyard row of Cebu in Tayud off Cansaga Bay and the one nearest to the Cansaga bridge. I heard included in the works done in her were upgrading in the engines. It seems it showed as after the drydocking, the MV Lady of All Nations became a faster ship.

She does two departures in a day and this means much more revenues for a medium-distance regional ferry. As such, she approximates in the a day a sailing distance from Cebu to the likes of Surigao, Dapitan, Dipolog, Iloilo, Masbate, Calbayog or Catbalogan. At nighttime, she leaves Cebu for Bato arriving there at dawn. She leaves at mid-morning in Bato to arrive in Cebu at mid-afternoon. She is the favorite there since she a bigger and more comfortable ship than her competition.

It seems it will be a long time before the competition will come out with a ship that will displace her in the Cebu-Bato route. Her main competition are actually the slightly better ships to Hilongos, another port north of Bato and on a parallel competing route to Cebu-Bato route. Maybe that was the reason why Cabin and Deluxe were added to her since the ships in Hilongos have Cabins and Suites. However, with slightly lower fares and the advantage of a shorter distance to the Southern Leyte towns, she has competitive advantages of her own. And with the short distance to Leyte her speed is not that much of an issue and being nearer to the farther destination then that cancels out the speed disadvantage (but this is not applicable to a very slow ship of a competitor in the Hilongos route, a cousin of theirs).

Acquiring her seems to be a genius stroke for Medallion Transport. She is a definite asset for the company. What a definite change of fortune by being a castaway in another route that lost (well, that is also true for MV Lady of Love – an advanced preview)!

Photo Credit: James Gabriel Verallo