Port operator, shipping lines move on congestion

ASIAN Terminals Inc. and major international shipping lines agreed on Tuesday to jointly undertake initiatives to address the current logistics challenges—particularly the buildup of empty containers—at the Manila South Harbor.

Through a collaborative session, the five shipping lines agreed to cooperate and share vessel resources to evacuate the empty

containers in Manila, while the port operator will dedicate ample resources to handle the requirements of the shipping lines to

ensure quick turnaround time.

The six shipping lines that will participate in this initiative are CMA-CGM Group, T.S. Lines, Evergreen, Yang Ming Lines, Wan Hai Lines and Hyundai Maritime. They will jointly pull out over 10,000 twenty-foot equivalent units (TEUs) of empty containers from the port for recirculation to Asian destinations on a weekly basis.

ATI Executive Vice President William Khoury noted that other major shipping lines may join the initiative in the near future.

“The idea is that after cargo discharge, the vessels docked at the port will load empty containers, regardless of which shipping line owns such container,” he added. “Today we have come together as one port community, showing that we are committed to improving trade flows for our customers and for the benefit of the entire economy.”

Doing so will greatly improve the entire container recirculation process, fast-track truck turnaround time and ultimately bring port operations to optimum levels, the initiative’s participants explained.

The industry, over the past few weeks, has seen a high inventory of empty containers, which hampers normal truck cycles. The situation has also adversely impacted port efficiency levels.

University of Asia and the Pacific economist Victor A. Abola earlier said that because of the effects of the port congestion, the Philippines can expect slower export earning and import bill growth.

Congestion, particularly at the Port of Manila, has also been cited by German firm Hapag-Lloyd as the reason it has “ceased acceptance for all reefer cargo to Manila, for both North and South Harbor.”

The notice also cited “limited trucking capacity” as another reason for the stoppage of reefer imports to Manila. The notice was posted in its web site in January 23 and was said to be effective immediately.

“Yes, [there was] severe port congestion. Plus street traffic. Container trucks can make less trips to port and back. Some cargo [are] waiting three weeks in port,” Abola said.

In 2014, a study released by state-owned think tank Philippine Institute of Development Studies estimated that the economy lost P43.85 billion due to port congestion. With a report by Cai U. Ordinario