Exporters have tapped a short-term solution to the shortage in global vessel space to handle their Christmas orders but admitted this problem is not in their sole control.
Speaking at the Philippine Exporters Confederation Inc. (Philexport) third general membership meeting yesterday, Philexport president Sergio Ortiz-Luis said through the Export Development Council, the group was able to get the help of domestic shipping lines in servicing their orders to clients.
Two of these shipping lines will be sailing this month to the US where most of the pending goods are going.
Ortiz-Luis said the SB Corp has also developed an emergency fund from where exporters may draw funds to advance freight costs that have gone 300 to 500 percent more than the pre- pandemic levels.
“We hope more and more international shipping lines will respond positively to the situation ahead of the holiday purchases,” Ortriz-Luis added.
Philippine exporters have been facing a backlog in their shipments due to the lack of vessel space. This has raised concern on their ability to deliver on their export purchase orders for the holiday season.
Because of the pandemic, some international shipping lines have reduced operations and downsized their manpower. As more economies have opened up, the fewer number of vessels prioritize the US, EU and other major markets where the volume is huge.
