Philippine overseas shipping industry shifts to services-led model amid capital surge, fleet decline

Philippine overseas shipping industry shifts to services-led model amid capital surge, fleet decline
Liz Lagniton October 13, 2025 https://maritimefairtrade.org/philippine-overseas-shipping-industry-shif...

The Philippine overseas shipping industry, Philippine-owned and registered vessels engaged in international trade between Philippine and foreign ports, is undergoing significant structural changes, marked by rising capital in fewer hands, expanding maritime service enterprises, and a shrinking registered fleet.

These developments were presented by Charlie Nofuente, overseas shipping service senior maritime industry specialist of the Maritime Industry Authority (MARINA), during the Philippine Shipping and Shipbuilding Conference, held on September 29.

Speaking at the event co-located with the Blue Economy Annual Trade and Conference 2025, Nofuente provided a regulatory and industry performance update covering shipping company accreditations, maritime enterprise trends, vessel registration, and tax contributions from chartered ships.

The presentation reflected key shifts in the sector’s direction between 2021 and mid-2025.
Declining number of accredited shipping companies, rising capitalization

The number of accredited overseas shipping companies under MARINA Memorandum Circular No. 181 declined from 48 in 2021 to 32 in 2025, marking a 33 percent reduction over four years. Despite this contraction, the total paid-up capitalization nearly doubled, rising from P1.29 billion (US$22 million) in 2024 to P2.56 billion by June 2025, representing a 98 percent increase within the first half of 2025.

“Despite having fewer companies compared to earlier years, the total paid-up capitalization nearly doubled from P1.29 billion in 2024 to P2.56 billion by June 2025,” Nofuente said. “This represents a 98 percent increase in just the first half of 2025. It is quite dramatic.”

According to Nofuente, this development may indicate several factors.

“It may be due to regulatory changes requiring higher capital requirements, major capital injections, or recapitalizations, new large players entering the market or the data reflecting specific regulatory or recovery charge.”

Chelsea Shipping Corporation emerged as the top-capitalized company in the sector with P2 billion, accounting for approximately 77 percent of the total industry capitalization.

“Chelsea Shipping Corporation stands out with P2 billion in paid-up capital, representing roughly 77 percent of the total industry capitalization,” Nofuente added. “This suggests either a recent massive recapitalization or that Chelsea is driving the dramatic capital surge.”

It was followed by:

Eastern Shipping Lines – P100 million
Leonis Navigation – P99 million
United Philippine Lines – P16.38 million
St. Vincent Shipping – P16 million

Together, these five companies represent 86 percent of total capitalization in the segment, indicating a high level of capital concentration among a small group of firms.

Under MARINA Circular DS-2020-02 or the Revised Rules and Regulations on the Accreditation of Maritime Enterprises that took effect in February 2021, accredited maritime enterprises saw modest fluctuations in number and significant changes in capitalization.

The number of accredited enterprises decreased slightly from 495 in 2021 to 471 in 2022, before rebounding to 523 by June 2025, the highest figure during the reporting period.

The capitalization trend was more volatile. It dropped from P8.8 billion in 2021 to approximately P6 billion during 2022 – 2023, followed by a sharp rise to P13.9 billion in 2024. By June 2025, this figure adjusted slightly downward to P13 billion.

As of June 2025, the average capitalization per enterprise was about P25 million, reflecting a more distributed capital structure than in the shipping company segment.

Among the 523 accredited maritime enterprises, Britoil Offshore held the highest paid-up capital at P8.5 billion, comprising a significant portion of the sector’s total capitalization.

Other top enterprises include:

NYK-FIL Ship Management – P520 million
Philippine Transmarine Carriers – P285.8 million
MOL Logistics Philippines – P199.53 million
Asia Pacific Chartering – P124.4 million
C.F. Sharp Crew Management – P124.2 million

Collectively, these six companies account for approximately P9.8 billion, or 75 percent of total sector capitalization. The listed companies represent a cross-section of offshore operations, international shipping, logistics, and crew management services.
Growth in maritime services

Accredited maritime enterprises by service type also showed upward trends. The number of accredited enterprises grew from 486 in 2024 to 550 by June 2025, a 13 percent increase over six months.

The ship agency segment experienced the most significant increase, rising from 127 to 175 companies in the same period, a 38 percent growth.

“The most striking improvement is the ship agency, which has grown from 127 companies in 2024 to 175 in June 2025,” Nofuente said. “That is 38 percent increase in six months.”

Nofuente suggested that this growth may be linked to rising maritime traffic, expanded port operations, or the opening of new shipping routes.

Manning and crewing agencies continued to dominate the industry, increasing from 297 in 2024 to 307 firms as of June 2025, representing 56 percent of the total. These enterprises focus on seafarer recruitment and deployment, maintaining their central role in the Philippines’ maritime services sector.

Ship management enterprises remained relatively stable, with 50 accredited firms by June 2025, following fluctuations in previous years (72 in 2023 and 47 in 2024).
Shrinking overseas fleet despite stable ship count

The Philippine-registered overseas fleet experienced a notable contraction in capacity, shrinking from 2.2 million gross registered tonnage (GRT) in 2021 to 911,693 GRT by June 2025, a 32 percent decrease. This decline occurred despite no significant change in the total number of ships between 2021 and 2025.

“This represents a loss of nearly 1.3 million GRT in capacity,” Nofuente said.

General cargo vessels increased from 28 to 46 between 2021 and 2025, but their total GRT declined by 58 percent, suggesting a shift to smaller vessels. Meanwhile, the number of bulk carriers fell from 51 (1.6 million GRT) to 34 (577,000 GRT), while the number of tankers remained stable but saw a reduction in total capacity.

This development runs counter to the growth in maritime service enterprises, suggesting a shift in business models within the sector.
Continued preference for foreign-chartered vessels

In terms of vessel acquisition, foreign chartering remains dominant. As of June 2025, 96 out of 97 ships operated under charter agreements, maintaining a 99 percent chartering rate — a trend consistent since 2021.

“The Philippine overseas shipping industry operates on an overwhelmingly chartered base mode of acquisition,” Nofuente said adding that “99 percent of vessels are chartered, that is 96 out of 97 ships in June 2025”.

The chartering model offers flexibility, reduces upfront capital outlay, and allows shipping companies to scale fleet operations based on demand. Nofuente noted that such arrangements leverage the country’s core strengths, including a skilled maritime workforce, strategic location, and lower operating costs.

Despite the reduction in fleet capacity, tax contributions from chartered vessels remained relatively consistent. Between 2020 and 2024, annual withholding tax income ranged from P26 million to P32 million.

In 2024, the highest tax contribution was recorded at P31.6 million, coinciding with 96 active chartered vessels. This suggests that profitability within the chartered fleet remained stable even amid broader structural changes in the industry.

Nofuente emphasized that the sector has continued to provide stable tax revenue for the government, regardless of fluctuations in vessel ownership or tonnage.

“The sector consistently contributes P26 to P32 million annually in taxes, representing a stable revenue stream for the government from chartered ships,” he said.