Port operators, shipping firms adjust to slowing trade amid virus
Listed port operators International Container Terminal Services, Inc. (ICTSI) and Asia Terminals, Inc.(ATI) said their business operations continue while contingency measures are being carried out to mitigate the impact of the coronavirus disease 2019 (COVID-19) pandemic.
For its part, shipping and logistic company Chelsea Logistics and Infrastructure Holdings Corp. said it sees opportunities in the situation.
“We would benefit from the lower direct expense due to the significant decrease in oil prices. Furthermore, we see increased demand for logistics services in bringing fast-moving consumer goods and medical supplies across the country. Our logistics company, Worklink Services, continues to serve the demand for logistics services particularly for specialized and efficient delivery service especially during these trying times,” it said.
LBC Express Holdings, Inc. said that it had closed some of its branches in various areas as a result of ordinances from local government units (LGUs) requiring the temporary closure of shopping malls. It also released new service level agreements with its customers in view of the changes in the operations of airlines.
In a disclosure to the stock exchange, Razon-led ICTSI said all of its terminals remain fully operational while it continues to implement various preventive measures against the spread of COVID-19.
ICTSI, which operates 31 facilities globally, said the immediate impact of the virus on its business includes “temporary isolation of certain pieces of equipment, a shut-down of the billing areas or other commercial areas, and temporary stoppages of operations to isolate facilities and ensure a safe environment for the continued flow of goods.”
“Macro risks include a reduction in volume at certain facilities due to a general slowdown in trade,” it added.
The company said it is focused on implementing measures to mitigate the risks of COVID-19.
Meanwhile, ATI said it had activated its business continuity plan to remain afloat amid the COVID-19 situation.
“The measures undertaken by ATI and its offsites include the implementation of its Business Continuity Plan for COVID-19. ATI has also a Prevention and Control Plan for COVID-19 and other communicable diseases in place as well as emergency response procedures for situations concerning public health and safety,” it said.
Dennis A. Uy-led Chelsea Logistics said the community quarantine being imposed on various cities has no direct impact on both tankering and cargo transport segments of its business.
Source: Business World