The Department of Transportation (DOTr) has issued orders aimed at bringing down the cost of shipping and provided redress on complaints against shipping lines.
Foremost is an order creating the Shippers Protection Office (SPO) to assist shippers that have been assessed with unreasonable fees and charges by shipping lines.
Under Department Order 2020-008, the SPO is authorized to accept complaints pertaining to rates, charges, practices, and operations of international and domestic shipping lines.
Secretary Ramon Lopez of the Department of Trade and Industry (DTI) said the agency supports the initiatives taken by DOTr.
“The creation of such an office is very important as importers, exporters, forwarders, and brokers will now have a venue to ventilate complaints against shipping lines charging exorbitant and unreasonable fees,” said Lopez.
Department Order 2020-009 meanwhile extended the minimum free time period for cargoes unloaded by international shipping lines to eight days from five days before collecting demurrage charges on containers.
The DTI said studies have shown that the five-day free time period granted by shipping lines to Filipino importers is one of the shortest free time periods in Asia.
The eight-day free time period aligns the free time period granted by many shipping lines to importers in other countries.
Department Order 2020-007 directs all domestic shipping lines to allocate cargo space and provide preferential rates for agricultural and food products.
The order enjoins all domestic shipping lines to allocate no less than 12 percent of a vessel’s cargo capacity per voyage exclusively for agriculture and food products and provide a discount of 40 percent of published rates for cargoes of said products.
The order is expected to benefit farmers by way of boosting demand for locally produced agricultural products.
“The longer free time of minimum of eight days prescribed under DO 2020-009 is expected to minimize, if not eliminate, demurrage charges to be incurred by consignees on imported products,” Lopez said.
He added importers that are able to release their shipments within eight days no longer have to pay demurrage charges.
For locally-produced agriculture and food products, the allocation of a vessel’s cargo capacity and provision of discounted rates as provided under DOTr’s order can lead to increased competitiveness and demand for such products.
This will contribute to the viability of domestic food production, as well as help sustain the government’s efforts to attain food security for the country.