PCSA meets with MARINA board in Cebu to address challenges in the shipping industry

CEBU CITY—The Philippine Coastwise Shipping Association, Inc (PCSA) held an extensive meeting with the MARINA board in Cebu on January 27 at Radisson Blu Hotel to discuss and address challenges in the shipping industry.

“This is a historic meeting with the MARINA Board, for the first time that the meeting is held in Cebu, attended by various government agencies and a private sector representative to discuss issues affecting the shipping industry, and the aftermath of the sinking and the suspension of the Alesson shipping company,” PCSA Chairman, Lucio Lim told media in a side interview during the event.

Lim bared that the main issue discussed include the licensing of crew, which has led to a severe shortage due to stringent requirements imposed 15 years ago. In a plenary session, some members of PCSA argue that experience should be valued over formal education for domestic shipping roles.

They also criticize the imposition of penalties and suspensions for accidents, noting that 90% of accidents are due to human error. The meeting aims to advocate for more lenient domestic regulations to alleviate the crew shortage and reduce the impact of penalties on ship owners, Lim said.

“PCSA wants to review several memorandum circulars that the MARINA Board has issued through the years that are related to fines, penalties, and crew licensing for the shipping industry in the Philippines.  MC-109 for instance was issued on July 13, 1995 that establishes a comprehensive schedule of administrative fines and penalties for violations related to vessel registration, licensing, documentation, and safety regulations.  There are more of these MCs that have been issued, revised and amended.  We want to go through them, review then line by line, if possible so we can prepare comments or propose changes to suit a win-win solution for the industry,” Lim told the media.

Department of Transportation (DoTr) Acting Secretary, Atty. Giovanni Lopez, in his keynote message emphasized the importance of maritime security and disaster response. He vowed to support the modernization of the Philippine Coast Guard's assets and personnel, saying, "The DOTr will support and provide the PCG with the resources and infrastructure, as well as policy measures needed to fulfill your mission.”

"We have faced both challenges and opportunities as individual regions, but the call and commitment for a collective Visayas-wide voice, action, and solidarity remain crucial. We should work as one,” Cebu governor Pamela Baricuatro said.   

Lim bared that the Philippine Coastwise Shipping Association, Inc. (PCSA) General Membership Meeting focused on strengthening domestic shipping through government and stakeholder collaboration.

“PCSA advocates for maritime industry governance reform, specifically splitting the Maritime Industry Authority (MARINA) into two entities for international and domestic shipping,” he added that the shortage of qualified crew members is a significant challenge in the shipping industry.”

Meanwhile, the Maritime Industry Authority (MARINA) is proposing stiffer penalties for shipping firms that violate safety and administrative regulations including fines ranging from P100 to P16,000, depending on the vessel's Gross Register Tonnage (GRT) for operating vessels without proper certificates or licenses; False statements or misrepresentations in applications can lead to P10,000 fines and vessels operating without valid insurance or passenger manifests face fines of P10,000 to P30,000.

Unauthorized route changes, port abandonment, or capacity increases can lead to fines of P200 to P2,000 per day and overcapacity and passenger ticket violations can result in fines of P10,000 to indefinite suspension.  Falsification or tampering of documents can lead to fines of up to P200,000; Operating without insurance can result in fines of up to P300,000 and MARINA can also suspend or cancel licenses for repeated offenses.

These issues on fines and penalties were extensively discussed at the plenary session during the meeting as well as in the consultative meeting with the MARINA Board, Lim said that most of these fines and penalties usually result in money losses for the shipping company.

Competency mapping

Lim further said that another crucial challenge of the shipping industry is the issue of competency mapping, a crucial process in the maritime industry, ensuring seafarers possess the required skills and knowledge to perform their duties safely and efficiently.

MARINA introduced competency assessment system (CAS) that integrates theoretical and practical testing to reflect real-world maritime operations, ensuring fair accurate and transparent evaluations.  However, PCSA argues that experience should be valued over formal education for domestic shipping roles.

“These issues of crew licensing, strict requirements over the past 15 years have led to a severe shortage of crew on domestic shipping.  The current licensing rules are seen as anti-poor, as they require college graduates to be seamen, despite STCW allowing for flexibility in rules,” Lim said.

Lim added that “experience” is emphasized as a crucial factor, with domestic shipping allowing individuals with elementary or high school education to become officers.  There is a need for corrections in the licensing rules to allow for more crew and address the shortage.

These complications arose from international conventions which affect domestic shipping regulations.  “The need for circular numbers to clarify and approve the new rules, the impact of these conventions on penalties and fines for violations is a key concern. There is difficulty in navigating the complexities of international and domestic shipping regulations,” Lim added.

PCSA hopes that the Marina Board will provide sufficient time to discuss and address the issues raised, for clearer and practical solutions to the licensing and accident management issues of the domestic shipping industry, Lim concluded. (Photos: MBCNewman)