Lorenzo Shipping sets strategic plan for profitability

LORENZO Shipping Corp. (LSC) is maximizing freight margins and implementing cost rationalization amid economic challenges.

This strategic shift is in response to a combination of factors, including general inflation, currency depreciation, and various operational expenses such as bunkering, trucking, tuggage, empty repositioning, and maintenance of vessels and equipment.

«With the unpredictability of domestic consumption, emphasis will be given to the flexibility of operating strategies without sacrificing discipline and excellence,» LSC said.

It added that vigilance on vessel and equipment maintenance and service reliability, as well as a better customer experience on cargo deliveries, remain the company's top priorities.

LSC is focusing on maximizing yield per container per voyage to offset the escalation of various expenses and other inflationary effects. It will continue with process improvements and innovation to significantly contribute to more efficient operations. LSC will closely monitor billing, collection, payables and other obligations to ensure continuous support of vendor services.

Additionally, the company will pay close attention to land- and sea-based employees' physical, mental and emotional welfare to maintain high morale and maximize productivity. Undertake risk-mitigation measures and continuously strengthen statutory compliance to diminish service disruption and guarantee business continuity.

LSC's total revenues for the six months ending June 30, 2023, amounted to P1.76 million. This was P187.61 million higher than the revenues reported over the same period in 2022.

Cargo volumes, however, were lower by 13.73 percent compared to last year. The decrease was due to fewer voyages attributable to a slowdown