The Philippine Competition Commission (PCC) is looking into high freight rates in the Philippines and possible abusive behavior in the industry.
Arsenio Balisacan, PCC chairman, issued this statement in reaction to a recommendation by the United Nations Conference on Trade and Development (UNCTAD) for policymakers globally “to continue to strengthen national competition authorities in the area of maritime transport and ensure that they are prepared to provide the requisite regulatory oversight.”
Balisacan also made this stand in the light of today’s hearing in Congress of two House bills governing freight rates.
“Logistics, including shipping, is one of PCC’s sector priorities, considering that this sector is vital during the pandemic and to economic recovery. We have been coordinating with the Department of Trade and Industry on the issue of high freight rates. PCC has an ongoing investigation of potentially abusive behavior in the industry, though we cannot disclose details at this time,” Balisacan said in the statement.
In the report, UNCTAD alleged carriers have earned high rates of return during the pandemic, with double-digit operating profits for some container carriers in 2020.
UNCTAD said it is important to ensure that national competition authorities can monitor freight rates and market behavior.
“Shippers have emphasized that they do not have access to empty containers for exports and face blank sailings, as well as high freight rates, and competition authorities are investigating potentially abusive behaviors,” UNCTAD said.
The House will hear HB 4316 which seeks to regulate the application of local charges (at origin and destination) imposed by international shipping lines to comply with existing laws on obligations and contracts and international commercial terminology and HB 4462 which mandates the Maritime Industry Authority to promote fair and transparent destination and other shipping charges among forwarders and agents of international shipping lines .
