Despite the continued growth in trade volume, the Philippine Ports Authority (PPA) yesterday said ports in Manila “continue to operate smoothly” as yard utilization remains within optimal levels.
PPA data, posted on its website yesterday, showed that as of December 2024, the Manila South Harbor (MSH) has a daily average yard utilization rate of 59 percent, while the Manila International Container Terminal (MICT) registered 71 percent.
“Despite the increase in cargo volumes, these figures indicate that ports continue to operate smoothly, preventing backlogs and delays in the movement of shipments. In fact, at any given time, yard utilization at the Port of Manila typically ranges from 67 percent to 70 percent, only peaking slightly during the holiday season,” said Jay Santiago PPA general manager said in a statement yesterday.
Santiago said a port’s optimum yard utilization is the ideal amount of container or cargo storage capacity that is effectively used without overloading the facility.
He said this ensures the port can handle incoming and outgoing shipments smoothly.
The optimal yard utilization at ports is 70 percent. A utilization of above 80 percent the port is at risk of congestion.
“Ports should have a healthy utilization rate. The 70 percent utilization threshold is set to keep port operations at a manageable level and avoid potential congestion. If the yard utilization rate remains below this threshold despite high cargo volumes, it indicates that containers are moving in and out of the port efficiently—ensuring a smooth flow of trade and preventing delays,” Santiago said.
But Santiago said even if yard utilization is way below the threshold, the port still indicates that containers are moving in and out of the port efficiently.
In terms of container traffic, both MSH and MICT recorded growth in throughput.
MSH handled 1.29 million twenty-foot equivalent units (TEUs) in 2024, up by 6.92 percent from 1.21 million TEUs in 2023, while the MICT processed 2.95 million TEUs in 2024, a 5.08 percent increase from 2.76 million TEUs in 2023.
These figures reflect a sustained rise in trade activity, supported by the PPA’s efficient port management and strategic improvements in operations.
