Magsaysay-controlled Lorenzo Shipping Corp. posted a net income of P40.25 million in the first nine months of the year, nearly double than the P22.1 million the company registered a year earlier. The company said in a statement its third-quarter freight revenue rose by 36 percent to P500.2 million as a result of a 10-percent rate recovery adjustment it implemented—along with other shipping lines—to cover higher cost of fuel. “Direct cost, however, increased by 40 percent from P293.15 million last year, particularly fuel and lubes, dry-docking costs, container repair, and cargo-handling expenses,” the company said.
“On a cumulative basis, income before tax remained higher by 36 percent at P44.49 million compared with last year’s P32.86 million” because of the gain on the sale of MV Lorcon Mindanao in the first quarter, it added.
On June 16 members of the Philippine Liner Shipping Association, including Lorenzo Shipping, Negros Navigation Co. and Solid Shipping Lines, increased their rates by 10 percent.
The last time operators implemented a general rate increase was in 2005. The liners said they were having a hard time coping with current economic conditions related to fuel as their fuel expenses have gone up to a third of their overhead cost.
They could no longer subsidize the added cost that was aggravated by additional labor cost, which had affected their importation of spare parts for vessel dry-docking.
In September shipping lines tried to increase rates between 8 percent and 10 percent, but Malacañang asked them to defer any upward adjustment.
“On a cumulative basis, income before tax remained higher by 36 percent at P44.49 million compared with last year’s P32.86 million” because of the gain on the sale of MV Lorcon Mindanao in the first quarter, it added.
On June 16 members of the Philippine Liner Shipping Association, including Lorenzo Shipping, Negros Navigation Co. and Solid Shipping Lines, increased their rates by 10 percent.
The last time operators implemented a general rate increase was in 2005. The liners said they were having a hard time coping with current economic conditions related to fuel as their fuel expenses have gone up to a third of their overhead cost.
They could no longer subsidize the added cost that was aggravated by additional labor cost, which had affected their importation of spare parts for vessel dry-docking.
In September shipping lines tried to increase rates between 8 percent and 10 percent, but Malacañang asked them to defer any upward adjustment.