First nonstop US-PH shipping service launched

The United States and Philippines have partnered with Royal Cargo and Iris Logistics to launch the country’s first nonstop shipping service between the two countries in decades.

The US Agency for International Development, through its Regulatory Reform Support Program for National Development (RESPOND) project, supported the Export Development Council (EDC) and University of the Philippines Public Administration Foundation.

They collaborated with Royal Cargo and Iris Logistics for the inauguration of the first nonstop Philippine shipping service between the Philippines and the US.

USAID Acting Mission Director Sean Callahan joined Trade Secretary Ramon Lopez, Manila Mayor Francisco “Isko Moreno” Domagoso, Royal Cargo Chairman Michael Kurt Raeuber, and government and private sector partners for the MV Iris Paoay’s maiden voyage ceremony on September 20.

“USAID is proud to be part of this momentous occasion, an excellent way to mark our 60th year here in the Philippines, and at the same time, the 75th anniversary of the establishment of the diplomatic relations between our two countries,” Callahan said, in a statement released by the US Embassy in Manila.

“We hope to foster an enabling environment for local business and to build the capacity of enterprises,” he added.

MV Iris Paoay would be the first Philippine flag container vessel to sail nonstop from the Philippines to the US West Coast and back.

The shipping service offered by logistics firm Iris Logistics, Inc., a Royal Cargo subsidiary, is expected to reduce shipping time and ease US and Philippine traders’ burdens resulting from the COVID-19 pandemic.

The embassy statement revealed that USAID worked with the EDC to organize a series of high-level discussions to find solutions to the Philippines’ high international shipping costs and inadequate vessel space, and the nonstop service was identified as one of the solutions.

“This service is expected to increase the overall exchange of goods, especially highly perishable agricultural products, and enhance food security through on-time delivery of shipments,” the statement said.

The Philippines is the US’s ninth largest export market for agricultural and related products, and the US is the second largest customer of Philippine agricultural and related exports. The two-way trade amounted to $4.3 billion in 2020.

Dr. Henry Basilio, chairman of the EDC Networking Committee on Transport and Logistics, stressed that this initiative has inspired other local shipping lines to also consider providing regional (intra-Asian) and trans-Pacific shipping service.

For the past 60 years, USAID has partnered with the Philippine government and local organizations to achieve shared development goals, investing around P257 billion or approximately $5.1 billion to support the Philippines since 1961.

Topics: Royal Cargo , Iris Logistics , United States , Philippines , Regulatory Reform Support Program for National Development , Export Development Council
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