Ships idle in Philippine port as global trade slows

SUBIC BAY, Philippines (Reuters) - It's 11 a.m. on a weekday but huge, bulky cargo ships scattered in this Philippine port are quiet and nearly deserted, save for a handful of workers repainting chipped handrails on some vessels.

About 22 ships -- mostly empty cargo vessels -- have anchored in this former U.S. naval base northwest of Manila, some as long as three months running. It's cheaper than most other ports in the region to park a ship and most crews are dominated by Filipinos so it's a popular choice.

Before August, when the global economic crisis started to stymie trade, cargo ships rarely stayed in Subic for more than a week. At any one time there were no more than 10 ships at the port.

"We don't usually get ships docked for a prolonged period," said Armand Arreza, administrator at the Subic Bay Metropolitan Authority. "We would usually get a few ships which would be on lay up, but never to the extent that we have about 22 ships and for a prolonged period of time."

Lay ups refer to the temporary shutdown of cargo ships during periods of surplus and depressed freight rates.

Since September, Subic Bay management has been swamped with e-mails and calls from owners seeking to dock their cargo ships at the port to cut costs following the collapse in shipping charges as global trade fell to multi-year lows.

About 12 other ships have left Subic Bay since the end of 2008 to pick up cargo around Asia, waiting two weeks to three months to get a client. But for the remaining 22 ships, the wait continues.

"There is no cargo," said the captain of a European-owned container vessel docked at the bay since December who asked not to be named as he was not authorized to talk to the media.

"This ship is a feeder vessel. And it depends mostly on mother vessels. Since there are no mother ships bringing cargo from US and Europe, smaller container vessels like this are affected," said the 54-year old Filipino captain.

SHIPPING RATES FALL

Average shipping rates slumped beginning August 2008 and hit a six-year low of $15,000 per day in November. That represented a 67 percent to 70 percent drop from highs of $45,000-$50,000 per day in June 2008, based on an internal publication of a European container ship firm in January.

Freight rates for dry bulk ships have plummeted from the highs hit during the commodities bull run last year.

Rates for capesize vessels -- the largest that can ferry iron ore, coal and grains -- on the key route between Brazil and China have fallen to $21 a tonne, down from above $100 a tonne in June last year, according to Reuters data.

The International Monetary Fund, predicting the world economy will stagnate this year overall with the deepening global financial crisis, forecasts world export volumes will contract 2.8 percent.

In Asia, most export-driven countries like Japan, Korea and Taiwan have suffered steep double-digit declines in shipments, paralyzing their economies and resulting in region-wide ship lay ups. Continued...

Int'l media: The Shock named Vietnam

History names Vietnam” is the headline of one of the many articles in foreign newspapers about the victory of the Vietnamese national football squad in the AFF Cup 2008.

Goal.com: A new dawn for Vietnam

Goal.com, a football news site, which always follows the AFF Cup, immediately congratulated Vietnam after the second leg of the final on Sunday. Nearly 1,000 readers of this football news website sent comments on the victory of Vietnam.

After the first leg of the final, Goal.com’s John Duerden warned: “That one night in Bangkok means that the players and coach can be satisfied, but any resting on their laurels will be a big mistake”.

However, after the second leg, he wrote: “It was team spirit, hard work and organisation that took Vietnam to the final and like all teams that win tournaments, they played good at the right time and got better as the competition progressed. A 2-1 win in Bangkok in the first leg of the final was a surprise for the hosts but Thailand was facing a different team than the one they defeated in the group stage.

“The trophy is the first major prize that the nation has won. And, as of this morning, Vietnam fans can say that the team has finally emerged as a player on the regional scene. It was done in style as Vietnam defeated the only two past winners of the trophy on their way to their triumph. The trick now though is to sustain this success. One way will be to keep the canny Calisto. The Portuguese tactician has transformed Vietnam, always a hard-working and passionate team, into a well-organised and more intelligent outfit,” John wrote.

However, he warned Vietnam that “Hanoi has long been a tough place for other teams to visit but now, Vietnam is capable of winning anywhere in South East Asia. But that is only the first step. Next comes qualification for the 2011 Asian Cup and a group that contains China, Syria and Lebanon.”

Reuters: Vietnam win their first international title
Reuters’ John Ruwitch was impressed by the enthusiasm and passion for football of millions of Vietnamese people. “Tens of thousands of people poured onto the grid-locked streets of Hanoi, waving flags, sounding horns and beating together pots and pans in wild celebration of the country’s first international title,” he wrote.

“Vinh buried Thailand’s hopes of a fourth title when he flicked the ball into the top corner to stun the visitors and trigger mass revelry at a sellout My Dinh Stadium.”

ESPN Soccernet: Late winner seals trophy
The site has a big article about the second leg of the final. ESPN expressed sympathy for Thailand that it didn’t get the trophy though it tried its best.

“Le Cong Vinh nodded in a dramatic stoppage-time equaliser and Vietnam were crowned Asean champions for the first time after clinching an aggregate victory over three-time winners Thailand in the AFF Suzuki Cup final in Hanoi,” ESPN wrote.

Regional media

Returning to newspapers in the region, channelnewsasia.com wrote: “Vietnam's victory capped one of the most surprising runs in the 12-year history of Southeast Asia's football championship”.

Meanwhile, the Bangkok Post just published the results of the match, without any detail. It was not until Monday noon that it published a commentary entitled “Thai cup quest ends in cruel defeat”.

“It was heartbreak for Thailand as Vietnam won the AFF Suzuki Cup with a dramatic goal in the last minute of injury time in the second leg of the final at My Dinh Stadium in Hanoi yesterday,” the newspaper wrote.

It quoted Thailand head coach Peter Reid as saying that "Vietnam deserved to win this match”.

The Straits Times wrote: “Thailand paid dearly for their misfiring and conceded a disputed free kick deep into stoppage time, which Vinh flicked into the net to earn Vietnam their first international title”.

Portuguese media

Newspapers in Portugal reported the victory gained by their coach, Henrique Calisto. The O Jogo ran the headline “Calisto – the hero of Vietnam’s football.” In this article, which was placed on the first page, O Jogo commented: “Calisto has been named into history along with the Vietnamese squad when they beat the former champion Singapore at the semi-final and Thailand at the finals.”

This daily newspaper described the trophy that Calisto and his players won as “A dream that Vietnam has been waiting for several decades.”

In an article named “A Portuguese helps Vietnam win the first int’l trophy,” the A Bola Daily praised: “Calisto has brought fame for Portugal in Southeast when he led the Vietnam team to the victory.”

The Record Daily described the atmosphere in Hanoi and other cities after the winning match “more than the over-enthusiasm that Portuguese shown when they hosted Euro 2004.”

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