Tankering and freight business are improving for Chelsea Logistics
11 May 2022
Chelsea President and CEO Chryss Alfonsus Damuy stated that various Chelsea Group segments have already improved year over year. Tanker usage increased from 62 percent in 2020 to 74 percent last year, according to him. Starlite Ferries and Trans-Asia both reported considerable increases in cargo utilization, with 97 percent and 90 percent, respectively.
With 315,132 delivery transactions, up 20% year on year, the tankering and freight business continues to thrive during the pandemic.
“This amazing revival of the country’s shipping and logistics sector provides a promising future throughout our business segments,” Damuy said on May 3, 2022, at the Annual Stockholders’ Meeting.
Meanwhile, the tugboat and passage components faced more difficulties. Tugboat movements decreased by 7% to 6,094 in 2021, while the Chelsea Group carried 686,096 passengers, a decrease of 47% year over year.
Last year, Chelsea Group achieved significant milestones. It received the MV Trans Asia 21, a brand-new RoPax vessel built in Japan and specifically designed for operation in Philippine waters and circumstances. The Cebu-Cagayan de Oro-Cebu route is currently served by MV Trans Asia 21. In the Visayas and Mindanao, Starlite Ferries has added three additional routes.
The company has finished its e-commerce facility in Paranaque City and is continuing to work on digital transformation of its processes and services. It has teamed with a number of well-known global innovators, including NTT Data, Barkota, Amazon Web Services, and ShopeePay. The Chelsea Group has achieved 70% of its five-year digital transformation program, which will be finished in 2023, as of the end of 2021.
Chelsea Group’s consolidated revenues for the year were P4.469 billion, down 4% from the previous year due to reduced sales in the tankering and freight business
The lower revenue was caused by numerous factors, according to Ignacia Braga 4th, the chief financial officer of Chelsea Logistics, including vessel availability concerns, low passenger volume, and lesser tugs movement due to reduced foreign vessel entry as a result of port operator restrictions. Chelsea’s stock price remained below book value, according to Braga.
To stay resilient and nimble, the company plans to recoup lost revenues, restructure liabilities, rationalize expenses, retire inefficient assets, and inject funds back into the business. It hopes to see significant improvements in its operations as more people are immunized.
“We will continue to implement our recovery measures and reverse the tide for the group as long as business fundamentals remain strong and the Chelsea Group’s commitment, competence, and resilience to adjust to the new normal,” Damuy added.
