The Philippine Ports Authority (PPA) has issued Memorandum Circular (MC) No. 002-2023 on February 13 clarifying that penalties on containerized cargoes beyond the free storage period (FSP) will be shouldered by shipping lines.
The new MC amends 2024 PPA MC No. 021-2023 titled Increase in Storage Charges for Foreign Containerized Cargoes.
It clarifies that for purposes of export boxes, the penalties to be imposed after the FSP shall be chargeable to the shipping lines.
Signed Jan. 30, 2024, Board Resolution 3267 took note that “several stakeholders raised their concerns as to the charging of the penalties for storage beyond the storage periods.”
The resolution adds that during the Dec. 19, 2023 meeting of the PPA Board of Directors, the Board “instructed to revise PPA MC. No. 021-2023, to clarify that the said charges shall be made against the shipping lines.”
To recall, PPA MC 021-2023 was issued last December 6 stating the approval of the increase in storage charges for foreign box cargoes pursuant to PPA Board Resolution No. 3261.
The storage fee hike took effect last January 6.
Storage charge as defined under PPA Memorandum Circular No. 03-95 is the amount assessed on articles, baggage, and containers for storage in the port premises, cargo shed, and warehouse of the government.
Storage charges for foreign containerized cargoes are assessed when the cargoes remain stored within or outside transit sheds or laid out in the open yard or stored in the warehouses of the PPA beyond the free storage period.
Foreign containers include import cargoes, export cargoes and transshipments.
Storage charges for foreign cargoes are assessed when these containers remain at PPA ports beyond the FSP.
For imported cargoes, assessment comes five calendar days after the day that the last item of cargo is discharged from the carrying vessel.
For export cargoes, it is four calendar days from the day that the cargo is received at the port.
For foreign transshipments, it is 15 calendar days from the day of arrival to the day of departure.
