State-run Philippine Ports Authority (PPA) yesterday urged local importers and exporters to make the necessary operational adjustments as delays in the delivery of cargo loom due to the partial closure of several ports in China because of the pandemic.
“We are encouraging all importers and exporters to take the necessary steps to adjust and secure their operations to mitigate the impact of the slowdowns or partial closures of the big ports in their overall operations,” Jay Daniel Santiago,PPA general manager, said in a statement.
In the past two weeks, several transshipment ports under the territories of China have slowed down their operations due to the COVID-19.
On Tuesday, Ningbo Port, the world’s third-largest container port, continues to shut one of its terminals for the seventh straight day due to the coronavirus, particularly the Delta variant.
Other major ports in the region likewise reported congestion owing to the lingering effect of the pandemic.
Majority of Philippine imports and exports pass through these transshipment ports as the country remains as a feeder economy.
PPA said early preparation is key to reduce the negative impact of the delays in their overall daily operations, thus, allowing them flexibility in the long run.
“We need to prepare. Eventually, the delays in cargo shipments will catch up with us due to the congestion being experienced in these transshipment ports,” Santiagosaid.
The Philippine major port gateways are currently operating under optimum conditions and way below the threshold level of utilization set at 75 percent.
The Manila ports, composed of the Manila International Container Terminal (MICT) and the Manila South Harbor (MSH), are operating under normal conditions. These two ports handle 85 percent of the country’s foreign trade volume.
MICT and MSH have an average utilization rate of 68 percent and 56 percent, and berth utilization rate of 59 percent and 56 percent, respectively. Both ports have an average per crane productivity rate of 25 moves an hour.
In terms of daily cargoes passing through the ports, an average of 12,000 twenty-foot equivalent units of foreign cargoes are being handled at the ports.
“PPA assures the shippers that Philippine ports can handle the bulk of the delayed shipments when conditions at the transshipment ports start to normalize,” Santiago said.
