THE International Container Terminal Services Inc. (ICTSI) yesterday noted the need to continue the imposition of penalties on overstaying cargoes to ensure the country’s premium port’s capacity remains healthy.
Christian Gonzalez, executive vice president of ICTSI, said at the Laging Handa briefing yesterday 92 percent of cargoes that came in at the Manila International Container Terminal (MICT) since the start of the enhanced community quarantine (ECQ) have been released leading to normal levels of operation at the MICT of below 67 percent.
“We need to institutionalize penalties and regulations whether they be of PPA (Philippine Ports Authority), port operators or other government agencies to ensure the ports are not congested,” Gonzalez told the briefing.
Gonzalez told the briefing whenever utilization levels are up, ICTSI communicates with owners of containers and find ways to bring out the container sas soon as they can.
Gonzalez was indirectly addressing the clamor by business groups for the exemption from the payment of demurrage/detention fees, port congestion surcharges, and other penalties on cargoes/shipments stuck at the port caused by slow issuances/bank processing /customs clearance.
Fifteen local and foreign business groups have put forward a number of measures that will help address reduce the cost of logistics and address supply chain challenges amid the disruptions brought about by the new coronavirus 2019 (COVID-19).
The business groups reiterated an earlier call for a moratorium on demurrage/detention fees, port congestion surcharges as well as the extension of free storage periods for cargoes and faster customs processing through the Super Green Lane (SGL) .
In a position paper, they added the lifting of the truck ban and the wider use of alternative ports in their proposed measures.
The groups also sought for the revocation of an old law granting the port authority a share in the income of the ports.
One of the organizations, the Export Development Council (EDC) in an April 3, 2020 letter to the PPA, Department of Finance and Department of Transportation (DOTr) requested for a waiver on demurrage fees but only DOTr responded by suggesting that the request be elevated to the Inter-Agency Task Force.
The groups said international shipping lines are imposing port congestion surcharges of $ 1,400 per reefer container. Demurrage charges of P1,400 to P2,800 per 40-foot dry container; P2,800 to P3,200 per day for reefers), and other penalties are likewise imposed.
The groups are also seeking for an extension in the free storage period from five days to 10 days . Currently, shippers pay storage fees to port terminal operators after the five-day free storage period of P962 to P1,443 per day for 40-foot dry containers and P192.50 per hour for reefers.
The groups also seek the adoption of the SGL process for shipments and transshipments bound for the Philippine Economic Zone Authority, Clark Development Corp. and Subic Bay Metropolitan Authority to unclog the ports.
The groups said lifting the truck ban/number-coding will allow for the faster delivery of cargoes especially of food and essential products, raw materials, export-import cargoes since the lockdown has eased traffic on major roads..
With or without lockdown, the business groups cited the need to improve the automation of the Bureau of Customs (BOC) saying drastic measures must be done to address the downtime arising from inefficient servers of the BOC.
“Delay or failure to process documents online is a critical factor behind port congestion,” the business groups said.
Business groups also called on the DOTr to fully implement Executive Order 172 issued in 2014 which provides for the use Subic and Batangas as extension ports in cases of port congestion and emergency situations.
Another relief sought by business groups is ensuring all shipping lines have sufficient container yard space for empty containers and for the accreditation and activation of inland container depots expendited.
Perhaps one of the most drastic measures the business groups is for the revocation of Letter of Instruction (LOI) 1005-A s. 1980 which among other things gives the PPA a 20-percent share in the cargo handling of revenues it manages.
The business groups said this
will reduce transport logistics cost which will redound to the benefit of consumers, manufacturers, farmers/fisherfolks, exporter and importers without impacting cargo handlers and port workers
”While this recommendation admittedly will cause a reduction in PPA’s revenue, we have to put a stop to this policy of sharing from cargo handling revenues (10 to 20 percent) which unnecessarily increases logistics cost. The negative impact (damage) such a policy brings to the economy is definitely greater than whatever the government does with the revenue it generates. This will have a long lasting, positive impact, beyond the COVID-19 crisis,” the business groups said.
Signatories to the position paper are EDC,
the Philippine Chamber of Commerce & Industry, Philippine Exporters Confederation Inc., Supply Chain Management Association of the Philippines,
Export Development Council, American Chamber of Commerce of the Philippines, Australia-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the PhilippinesJapanese Chamber of Commerce and Industry of the Philippines, Inc.
Federation of Filipino Chinese Chambers of Commerce and Industry, Inc.
Semiconductor and Electronics Industries in the Philippines Foundation, Inc.
Korean Chamber of Commerce Philippines
Philippine Association of Multinational Companies Regional Headquarters, Inc
Management Association of the Philippines.
