Chelsea Logistics reported in its 2021 Annual Stockholders’ Meeting that the immediate measures taken by the Group to cope with the pandemic are now materializing as evidenced by its first quarter performance with a narrower net loss and improved EBITDA.

“The freight business takes the lead with its Q1 revenue up by 20% year-on-year. While the consolidated shipping and logistics business declined by 28% from the same period last year, it is close to hitting 73% of its first quarter target, considering the reduced passenger requirement onboard and restricted leisure travel,” said Chelsea Logistics President & CEO Chryss Alfonsus V. Damuy.

As part of its on-going recovery strategy, the Group continues to improve its vessel utilization, route rationalization, revenue management, and cost-cutting initiatives. Chelsea Logistics is expected to generate positive cash flow in early to mid-2022 as the first half of 2021 serves to be the recovery period.

Chelsea Logistics is well-positioned to take advantage of the strong growth in e-commerce. Hence, the Group is giving equal emphasis on this business segment. On the other hand, Trans-Asia 21, part of the Group’s committed capex last year, finally arrived in the Philippines last May 16 and is set to trade by July this year. 

For its infrastructure venture, Chelsea Logistics’ project proposals for the development and operations of Davao Sasa Port, Davao International Airport and Caticlan Jetty Port are expected to be major drivers for the Group’s recovery in the coming years. 

Moreover, the Philippine fundamentals paint a positive trajectory for the way forward, supporting the recovery of the shipping and logistics industry.

“Shipping still remains the primary mode of transport for both Passenger and Cargo for an archipelagic country like the Philippines. Before the pandemic, the country’s economic fundamentals were robust, i.e., GDP growth of the country was very strong, inflation is on a manageable level, and employment rate is high. The tourism growth prior to the pandemic was very steadily growing, and the country will continue to be an attractive tourist destination as many have been adapting to the new normal of traveling. Strong internet penetration has further boosted the growth of e-commerce, which definitely benefits our logistics business,” Damuy added.