Avega Bros Integrated Shipping Corp

CATERING FOR THE LOGISTICAL NEEDS OF THE FLOURISHING PHILIPPINE MARKET

BROTHERLY CARGO BROKERAGE

Writer: Jack Salter | Project Manager: Taylor Green

Alec Vega, Chairman of AVega Bros Integrated Shipping Corporation, discusses catering for the logistical needs of the flourishing Philippine market

The AVega Bros Integrated Shipping Corporation (AVega Bros) name is a nod to Alec, Alison, and Alexander Vega, whose father founded the company in 1981 as a cargo broker servicing the shipping requirements of the Philippines.

Alec Vega, Chairman, was the first of the three brothers to join AVega Bros, having previously worked for a

barging business.

Alison and Alexander, graduates in engineering and law, respectively, would soon follow suit as AVega Bros started out by chartering ships and acting as a shipping agent.

“We tried to own a ship, but at the time, nobody from the family was knowledgeable on the technical side of running them, so our father said that we should just concentrate on

marketing vessels because that was our forte,” Alec opens.

“We found out that there are a lot of ship owners using one or two vessels for their own trading purposes. After ferrying their products, these vessels are idled most of the time, so we gathered all these smaller shipping companies and started booking them; that way, we were able to compete with the bigger shipping firms.”

ICHS CASE STUDY – RICE TRANSPORTATION

COLLECTION FROM WAREHOUSE – Cargo is secured from the client’s warehouse for transportation. AVega Bros arrives at the initial warehouse to collect the bags of rice, which are then loaded onto trucks and secured for delivery.

PORT DELIVERY – AVega Bros’ trucks transfer the cargo to the port, where it is consolidated and prepared for its next transport. Next, the rice is brought to the port, where the sacks are checked, secured, and readied for shipment. The company’s reliable arrastre and stevedoring crew get things done in the swiftest and most efficient manner.

NATIONWIDE SHIPMENT – Using its own fleet, the cargo is shipped out to its next destination. The rice is then transported to different regions in the Philippines and closely monitored throughout the journey to ensure it is in the best condition.

DISTRIBUTION TO WAREHOUSES – Once the cargo hits land, AVega Bros delivers it to the different warehouses in the area. The rice is carefully loaded back onto trucks and distributed around the region by the company’s trusted drivers, who make sure it arrives safely and on time.

WAREHOUSE MANAGEMENT – The AVega Bros team stacks and organises the goods in the warehouse and readies them for wholesaling or further transport. As the rice finally reaches its target warehouse, the company once again evaluates to confirm that all necessary tasks have been carried out and ensure that the cargo is kept in good condition.

PACKAGING FOR STORAGE – If necessary, AVega Bros repackages cargo for storage according to its clients’ preferences. If any of the bags appear to be damaged, the team will re-bag the rice for further allocation and storage.

As the economy improved, these smaller fleets, and subsequently their client bases, were able to grow.

This eventually motivated AVega Bros to acquire its own vessel, realising its early ambition to become a ship owner, as it could no longer rely on smaller shipping companies that were now able to develop their own market.

“Economically speaking, it was better for them to go straight to their clientele rather than passing through an agent,” explains Alec.

“We therefore purchased a ship as cargo owners felt that they could get cheaper freight by dealing directly with ship owners.”

Today, the company’s fleet has expanded to include a large number of vessels, tugboats, and barges. This growing fleet is the youngest in the country and is kept in excellent shape, ensuring cargo remains in good condition.

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“WE WANT TO BE COMPETITIVE, AND WE FEEL THAT HAVING A DRY DOCK WILL BE ADVANTAGEOUS FOR US WITH THE NUMBER OF VESSELS WE NOW HAVE”

– ALEC VEGA, CHAIRMAN, AVEGA BROS INTEGRATED SHIPPING CORPORATION

Along with maintaining its own fleet, AVega Bros has comprehensive agreements with a complementary network of terminals, silos, arrastre and stevedoring operators, and trucking companies operating all over the Philippines.

This enables AVega Bros to provide its clients with the complete services they require at any time of day across the country.

INTEGRATED SYSTEM

Thanks to its decades of service,

AVega Bros has acquired a vast knowledge of the Philippine logistics system, from ships and inland marine to port and terminal facilities, as well as various other elements related to cargo handling and delivery.

Through its tried and tested integrated cargo handling services (ICHS), a nationwide warehouse-towarehouse delivery system for bulk and break cargo, the company lessens impediments and enables a smoother delivery process across the country. Able to ship cargo to any part of

the Philippines, AVega Bros’ ICHS follows a five-phase procedure that transports goods from initial storage to the destination warehouse and is flexible and easily adaptable to clients’ logistical needs.

“We deliver cargo anywhere the client wants. We provide door-to-door services for big clients that want cargo sent directly to their warehouse, whilst small clients settle for delivery on a pier-to-pier basis,” Alec outlines.

“Some shippers prefer their cargoes to be delivered directly to their warehouse because that way, they feel there’s less risk.”

Through door-to-door, AVega Bros has extended its services and therefore added value to the company’s offering.

“Why would a client choose pier-topier when there is another company that offers door-to-door service for almost the same cost?” questions Alec.

AVEGA BROS SERVICES – AT A GLANCE

SHIPPING – The company provides deliveries, time chartering, and contracts of affreightment.

TRUCKING – Transporting cargo by land anywhere in the Philippines is made easier with AVega Bros Trucking Services Corp. Networks of trucks are available, operated by trusted drivers and dependable cargo checkers.

WAREHOUSE MANAGEMENT – AVega Bros provides manpower services to handle deliveries to ports and warehouses. Cargo is kept in safe hands by a reliable and efficient team.

EQUIPMENT RENTALS – The company’s cranes and full range of top-quality equipment for aiding cargo movements are available for rentals, making transporting significantly easier and quicker.

LIGHTERAGE – AVega Bros can carry out deliveries with ease, regardless of a port’s capacity. Tugboats and barges are available for port facilities that cannot accommodate large vessels.

OPERATIONS – With a deep understanding of the many hurdles associated with delivering in an archipelagic country, AVega Bros offers systematic and professional operations.

DRY DOCK PLANS

Having introduced door-to-door shipping, the next plan for AVega Bros is to have its own dry dock for ship repairs.

“We want to be competitive, and we feel that having a dry dock will be advantageous for us with the number of vessels we now have,” Alec states.

By having its own dry dock, AVega Bros will not only be more competitive, but also more efficient, as it means the company will no longer be dependent on the repair schedules of shipyards.

“We will be able to schedule our own repairs and maximise the use of the vessel because we can programme it ourselves, so that’s the next goal.”

The important role of AVega Bros’ suppliers will be even greater once the dry dock project is complete, especially when it comes to spare parts.

“Even if the ship has already been dry docked and is ready to set sail, without spare parts, we cannot trade if there is a problem with our machinery,” notes Alec.

As the Philippines doesn’t produce steel plates, AVega Bros imports around 500 tonnes (t) of this vital product per annum from China.

This ensures that the company receives the quality it requires, as the steel plates must be able to withstand the harsh conditions encountered at sea, including high-impact forces, corrosion, and exposure to saltwater.

Going forward with quality at the fore, the main goal for AVega Bros is to expand its market and offer clients the best possible service.

“We always try to look for ways

that shippers can minimise expenses on their cargo transport, because that way, we keep them longer,” Alec concludes.

AVEGA BROS INTEGRATED SHIPPING CORPORATION

Main Office

Sitio Baha-baha, Tayud, Consolacion, Cebu 6001

Tel: (+6332) 340-1802

Mobile: 09175039246

Fax: (+6332) 340-1802

Cebu Branch

J. De Veyra St., North Reclamation

Area, Cebu City 6000

Tel: (+6332) 231-2526, (+6332) 340-4937

Fax: (+6332) 340-4937

Makati Branch

Alexander Suites G/F 8070 Tanguille

St., cor. Estrella Avenue, San Antonio Village, Makati City 1203

Tel: (+632) 899-5870, (+632) 890-4484, (+632) 899-5794

Fax: (+632) 897-3491

marketing@avegabros.com

operations@avegabros.com

www.avegabros.com