Free time for cargoes extended 3 days

Department of Transportation (DOTr) Secretary Arthur Tugade ordered international shipping lines yesterday to extend the regular 5-day free time period for cargoes unloaded in all ports in the country to 8 days minimum.

To date, the Port of Manila is still congested with overstaying cargoes, primarily those under custody of the Bureau of Customs, acknowledged Philippine Ports Authority (PPA) General Manager Jay Daniel Santiago.

The extension of the free time for an additional three days should give shippers and importers flexibility in processing their shipments without fear of additional costs, especially during these difficult times, he pointed out.

Free time period refers to period of time counted from the discharge of cargoes from the ship to the port, which is offered for free to the consignee by the shipping line.

Shipping lines impose a demurrage charge in cases where the consignee has not taken delivery of the container and moves it out of the port/terminal area for unpacking within the allowed free days.

Free days for conventional shipping are usually between 3 to 5 days after the shipping line’s container has been discharged from the ship.

The shipping line slaps a detention charge in cases where the consignee has taken the container out of the terminal area for unpacking but have not returned the empty container to the depot before the expiry of the allowed free days.

“PPA fully supports DOTr measures to help mitigate the economic impact of the COVID-19 pandemic, where operations of both government and private offices are limited," the PPA GM explained.

"We just hope that whatever positive impact this cost-saving initiative will have on shippers and importers will trickle down to end-users and consumers,” Santiago added.

The savings of the consignee depends on the cargo fees agreed on between the latter and the shipping lines. It's a private transaction.