AISL eyes 2026 turning point for shipping

The Evolution of AISL Eyes A Turning Point for Shipping in 2026

As the global economy continues to recover from the pandemic-induced slowdown, the international shipping and logistics sector is poised for a significant shift in 2026. According to the Association of International Shipping Lines (AISL), this year will be marked by the normalization of global trade routes, aggressive infrastructure expansion, and record-breaking terminal performances.

In an exclusive interview with The Manila Times, AISL President Patrick Ronas highlighted the critical factors that will shape the industry's trajectory in 2026. At the forefront is the cautious reopening of the Red Sea transit route, which has been disrupted by geopolitical tensions in recent months.

The Impact of Global Disruptions

The Red Sea diversion, sparked by Houthi attacks and the war in Gaza, led to a significant increase in shipping costs, including higher fuel prices, increased insurance premiums, and congestion in major European hubs. However, Ronas noted that major carriers are now testing the route with caution, signaling a potential return to normal routing.

We hope that the geopolitical tension in the region continues to ease, allowing for shorter transit times and reduced inventory carrying costs, Ronas said. This will be a boon for traders, as it eliminates imbalances in the supply chain.

The Resilience of Philippine Trade

Despite global headwinds, Philippine trade has remained resilient due to its strong ties with China, Singapore, Korea, Japan, and Southeast Asia. This diversification has provided a buffer against market fluctuations, evident in the 7 percent increase in export volumes compared to last year.

Philippine imports have also seen significant growth, rising by 10 percent, Ronas noted. This is a testament to our country's ability to adapt and thrive in an increasingly interconnected world.

Future-Proofing through Infrastructure

Domestically, the outlook for 2026 is brightened by massive capital investments from top port operators. The International Container Terminal Services Inc. (ICTSI) is constructing the Luzon International Container Terminal (LICT) in Bauan, Batangas, a project worth $800 million and scheduled to be operational by 2027.

This new terminal will 'future-proof' our logistics industry, Ronas said. It will serve as a catalyst for economic growth in Southern Luzon, providing a much-needed boost to the region's trade and commerce.

Record-Breaking Terminal Performance

Manila's key terminals have also achieved operational milestones over the past year. The Manila International Container Terminal (MICT) set a new record, handling over 3.5 million TEUs, a massive leap from pre-pandemic volumes of less than 2 million.

Ronas attributed this success to the terminal's modernization efforts, including the addition of hybrid equipment. Similarly, Asian Terminals Inc. (ATI) reported significant improvements following the extension of Pier 3 and the acquisition of two new ship-to-shore gantries.

These upgrades expanded ATI's yard capacity by 25 percent, allowing it to handle record container volumes.

A Turning Point for Shipping

In conclusion, this evolution in AISL eyes marks a turning point for the shipping industry in 2026. With significant implications for trade, infrastructure, and logistics professionals alike, this shift is poised to shape the global economy's trajectory in the years to come.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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