Logistics firm Royal Cargo has raised alarm over what it calls abusive charges slapped by shipping lines and sought long-term solution to end this practice.
Michael Raeuber, chief executive officer of Royal Cargo group, at a virtual forum on “Enhancing Competition for Competitiveness and Economic Recovery” on Friday called on the need for the government to consider safeguards against abusive anti-market practices by foreign shipping lines which impose destination charges in circumvention of INCOTERMS or the terms of trade for the sale of goods.
“Shipping line conferences functioning as legal monopolies are supposed to be structures of the past. Therefore, concerted actions to circumvent markets and international rules, such as INCOTERMS, should be disallowed, perhaps even criminalized,” Raeuber said.
Raeuber also lamented the fact that the Philippine Ports Authority is both the regulator and operator simultaneously, thus leading to excessive charges to the port users and eventually the public.
“At the same time, it supports market concentration and prevents competition,” it said.
Raeuber urged the Philippine Competition Commission to look at this issue.
PCC chairman Arsenio Balisacan in response said the commission has been working with the Department of Trade and Industry to resolve the issues raised.
