CNC Launches First Foreign-Owned Domestic Shipping Service in the Philippines

CNC, the Intra-Asia short sea specialist of the CMA CGM Group, today announced the launch of a new legal entity (named “CMA CGM Philippines Shipping”) which marks the first 100% foreign-owned international shipping line to register and operate a domestic service in the Philippines, following 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. This in turn reduces transit times, lowers logistics costs, and fosters stronger economic ties and trade flows across the region.
 
CNC’s new Philippines operation will also ensure the implementation of international best practices across both land and sea organizations uses. For example, the use of Very Low Sulfur Fuel Oil (VLSFO), in compliance with the International Maritime Organization (IMO) 2020 standards will be a priority, ensuring environmentally sustainable practices in fuel usage and overall operations. While IMO 2020 has not been fully implemented in the Philippine domestic shipping industry, CNC has 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. 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. This will be particularly beneficial for the importation of essential goods, such as food and rice, where cost-effectiveness is paramount.
 
“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 Bo Wegener, CEO of CMA CGM Asia-Pacific. Steven Zhu, CEO of CNC, 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."