CMA CGM Launches First Foreign-Owned Domestic Shipping Service in the Philippines

CMA CGM is set to launch a new domestic service in the Philippines, becoming the first foreign-owned international shipping line to establish this service. This is being done through CMA CGM’s intra-Asia short-sea specialist company called CNC.

The government of the Philippines has permitted foreign shipping companies to venture into the domestic shipping market.

This new service will establish new maritime trade routes, improve connectivity between principal ports in the country, reduce transit times, lower logistics costs and foster strong economic ties and trade flows across the region.

Philippines’ Department of Transportation Undersecretary for Maritime, Elmer Sarmiento expressed his happiness at this development. He added that it would improve the country’s shipping capacity and create job opportunities for maritime professionals, strengthening the maritime industry of the Philippines.

The new service will commence with the CNC Pilipinas, a 1037 TEU ship sailing under the flag of the Philippines. The ship was constructed in 2009 and has a DWT of 12500. It was earlier operated by COSMOSHIP and ANL Singapore.

It will ply on the Luzon Visayas Mindanao Express shipping service, with weekly port calls which would rotate between Manila, Cagayan de Oro, Cebu, and Manila. It will use Very Low Sulfur Fuel oil, in compliance with IMO 2020 standards, even though the country has not completely implemented IMO 2020 in its maritime sector.

Steven Zhu, CEO of CNC said that they are thrilled to be the first foreign company to establish their entity in the country and with the government’s support will bring the best knowledge, technologies and infrastructure to the domestic market.

CNC mentioned that domestic service allows Filipino seafarers to get acquainted with operations and training at par with international standards.

This service will also enhance cargo handling in the country by using the same containers for international and domestic shipping. Per the company, it will be advantageous for the importation of vital commodities, including foodstuffs, and rice where cost-effectiveness is most important.

Bo Wegener, CEO of CMA CGM Asia-Pacific added that Asia is a major contributor to the company’s growth and the establishment of this new service is a milestone for the company as they develop its expertise and expand in the region.

CNC was founded in 1971 and is based in Singapore. CMA CGM acquired it in 2007 and in 2019 it became the only short-haul shipping name in Asia.

It provides services in many countries including Indonesia, Bangladesh, Cambodia, China, Japan, Malaysia, South Korea, Philippines, Myanmar, Thailand, Vietnam, Singapore, Hong Kong and Taiwan.

Reference: CNC Line

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