Rising fuel prices, not global trade tensions or tariff-related supply disruptions, are the primary concern for multimodal transport and logistics firm 2GO, according to SM Investments Corp. president and CEO Frederic C. DyBuncio.
Speaking at a financial briefing on Friday, DyBuncio said that while US-led tariff restrictions have disrupted global supply chains, 2GO—being a purely domestic player—has largely been insulated from those shocks.
“The biggest concern of 2GO is the fuel price, which is the biggest driver for our ships,” DyBuncio told reporters. Crude oil purchases in the Philippines typically range between US$71 and US$77 per barrel. After a brief decline early in the year, global oil prices began to climb again mid-year, reaching US$76.91 per barrel in June. Analysts now forecast a modest easing in the second half, citing growing inventories and geopolitical factors. Dubai crude, a regional benchmark, is expected to hover around US$76–77 per barrel.
Despite fuel headwinds, 2GO—a key transport arm of the SM Group—continues to perform well. DyBuncio said the company contributed 16 percent of SM’s non-core income and reported robust demand for its services. In fact, passenger and cargo traffic has grown so strong that the company has had to delay some container shipments due to limited vessel space.
2GO operates a fleet of 10 vessels, nine of which are roll-on, roll-off passenger ships (ROPAX), and one freighter. DyBuncio described the ROPAX fleet as “cruise ship-like,” complete with well-known retail names onboard such as Kultura, Miniso, and Goldilocks. Some ships even feature karaoke lounges and dance areas, catering to the leisure crowd.
To capitalize on growing domestic tourism, 2GO Travel, the company’s passenger ferry unit, recently added Siargao to its list of destinations. DyBuncio noted that high airfare to the island has made sea travel an appealing alternative for both tourists and locals.
“With the amenities in our ships, we think we can attract passengers—not just the foreign backpacking crowd but also locals looking for a more affordable and enjoyable travel experience,” he said.
Despite external pressures, 2GO remains bullish, leaning on strong consumer patronage and a focus on domestic growth to navigate the challenges ahead.
