CNC, the Intra-Asia short sea specialist of the CMA CGM Group, announced Friday the launch of CMA CGM Philippines Shipping—the first 100-percent foreign-owned international shipping line to register and operate a domestic service in the Philippines.
This followed the government’s expanded regulations permitting foreign shipping lines to venture into domestic shipping.
The new domestic service will be launched with the Philippines-flagged vessel CNC PILIPINAS, a 1,037 twenty-foot equivalent unit (TEU) vessel.
The CNC PILIPINAS will sail on the Luzon-Visayas-Mindanao Express (LVMX) shipping service, with weekly port calls rotating between Manila, Cagayan de Oro, Cebu and back to Manila.
The service will support the establishment of new maritime routes, improving connectivity between major ports in the Philippines to the group’s global network.
“Asia contributes significantly to our growth globally, and the establishment of CNC’s domestic shipping service in the Philippines is an important milestone for us as a business as we continue to develop our expertise and strength in our intra-Asia services,” said CMA CGM Asia-Pacific chief executive Bo Wegener.
Department of Transportation Undersecretary for maritime Elmer Sarmiento welcomed CNC’s first domestic service in the Philippines.
“It is a testament to the Philippines’ commitment to fostering a competitive and dynamic maritime industry that will continue to attract international investments. This initiative will not only enhance our domestic shipping capabilities but also create valuable job opportunities for our seafarers, further strengthening our maritime sector,” Sarmiento said.
Steven Zhu, CNC chief executive said the Philippines holds promising potential for maritime growth and innovation given its dynamic domestic and international trade.
“We are thrilled to be the first foreign company to establish our own entity here, and together with the Philippine government, will strive to bring the best of our global knowledge, technologies, and infrastructure to the domestic market.”
CNC said the new service reduces transit times, lowers logistics costs, and fosters stronger economic ties and trade flows across the region.
CNC said its new Philippines operation would ensure the implementation of international best practices across both land and sea organizations uses.
CNC said the use of very low sulfur fuel oil (VLSFO), in compliance with the International Maritime Organization (IMO) 2020 standards would be a priority, ensuring environmentally-sustainable practices in fuel usage and overall operations.
It said that while IMO 2020 was not fully implemented in the Philippine domestic shipping industry, CNC proactively converted to VLSFO to contribute to reducing air pollution and protecting public health and the environment, in line with the CMA CGM Group’s commitment to acting for the planet.
“The new CNC domestic service offers opportunities for Filipino seafarers to be exposed to international-standard operations and training,” the company said.
It also enhances the efficiency of cargo handling within the Philippines by utilizing the same containers for both international and domestic shipping, which effectively minimizes the need for additional handling and thus reduces overall transportation costs, it said.
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