CMA CGM Group. Photo from the company’ websiite

French shipping company CMA CGM Group has opened its Manila-Cebu-Cagayan de Oro route to take advantage of the robust trading activities that have been driving the demand for shipping.

Bo Wegener, CMA CGM CEO for Asia Pacific, said in an event in Pasay on Friday that the Philippine-flagged vessel “CNC Pilipinas” has been deployed to operate its Luzon Visayas Mindanao Express shipping service.

Article continues after this advertisement

The ship, which has 1,037 twenty-foot equivalent units (TEU) in capacity, is set to make weekly sail.

FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansion

This is the first fully foreign-owned domestic shipping service in the country. It aims to reduce transit times and decrease logistics costs as a result.

“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,” Wegener said.

Article continues after this advertisement

Wegener expressed optimism over shipping demand in the country given its archipelagic nature, which means sea-based transport plays a crucial role in mobility.

Article continues after this advertisement

READ: Global maritime trade sails into geopolitical storm

Article continues after this advertisement

In addition, the official is also upbeat on the economic recovery that boosts consumption and production.

In fact, the Philippine Ports Authority projected cargo shipments to reach 285 million metric tons (MT) this year, showing 5-percent growth from 271.97 million MT last year. This projection indicates a continuous growth for the domestic sea terminals whose cargo volume has already surpassed the pre-pandemic level of 265.88 million MT.

Article continues after this advertisement

In the first half, cargo throughput improved by 6 percent to 138.29 million MT from 130.08 million MT a year ago.

READ: Shipping giant CMA-CGM joins Maersk in Red Sea return

Container traffic grew by nearly 2 percent to 3.73 million TEUs in the first half from 3.67 million TEUs the previous year.

The demand for logistics services—which include shipping—has been on the rise due to growing e-commerce sector. A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

“We are very excited that [CMA CGM] has chosen to launch its 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 investmentsditowins,” Transportation Undersecretary for Maritime Sector Elmer Sarmiento said.

READ NEXT DHL Express to hike rates starting 2025 Meralco unit, Terra Solar seal P7.8-B pact for Luzon grid conn... EDITORS' PICK Kristine gets nearer; Metro Manila, 42 other areas under Signal No. 1 WPS: US missile deployment to PH key for combat readiness – US general INQside Look with senatorial aspirant Tito Sotto NBA: Nuggets give Aaron Gordon 4-year, $133M extension Espenido retracts drug-related allegations vs De Lima Heart Evangelista: Woman to woman, I never had a problem with Pia Wurtzbach MOST READ SC issues TRO vs Comelec resolution on dismissed public officials Tropical Storm Kristine slightly intensifies; Signal No. 2 in 5 areas LIVE UPDATES: Tropical Storm Kristine Espenido retracts drug-related allegations vs De Lima View comments

• Group
• ditowins
• opens
• CMA
• CGM