The domestic shipping industry is in dire straits. A former official of the Maritime Industry Authority said the Philippine domestic shipping industry will continue to have a bleak outlook for the rest of 2019.
The former government official and leading industry analyst based his forecast on the 2018 performance of the Philippine domestic shipping industry. Records show local shipping operators collectively reported net income losses of about P4 billion.
“With the way things are going now, the domestic shipping industry is projected to bleed even more in 2019,” the former government executive notes.
He stressed that while cargo volumes were still growing moderately due to the growth of domestic consumption, shipping operators were burdened by increasing operating costs, partially attributed to the excise tax on petroleum products as provided for under the TRAIN Law. Fuel consumption remains the biggest component of operating cost.