Groups present list to boost port efficiency, reduce logistics cost

INDUSTRY groups on Thursday appealed to the government to temporarily halt the collection of logistical fees and prolong the duration of free storage in ports to improve transport efficiency and reduce logistics cost at a time global supply chain disruption.

In a news statement, industries called on the government to implement a moratorium on dem ur rage fees, port congestion surcharges and penalties imposed on cargoes stuck at the port due to slow issuances, bank processing and Customs clearance. They want the moratorium to be applied retro actively to all shipments affected.

They reported that international shipping lines are placing port congestion surcharges of up to $1,400 per reefer container, while demurrage fees range from P1,400 to P2,800 per 40 feet dry container and up to P3,200 per day for reefers.

According to the industry groups, the request for a moratorium was made as early as April 3 when the Export Development Council wrote a letter to the Philippine Ports Authority and the Departments of Finance (DOF), and of Transportation (DOTR). However, they only got a reply from the DOTR, who recommended that the petition be transmitted to the Inter-agency Task Force for the Management of Emerging Infectious Disease (IATF).

Industries also sought to extend the free storage period to 10 days, from five days, as shippers pay storage fees to port operators of as much as P1,443 a day for 40 feet dry container and at least P192.50 per hour for reefers.

Moreover, they argued that a green lane process be adopted for shipments made by economic zone firms. In line with this, they also asked for the lifting of the truck ban and number coding to keep flow of goods unimpeded under the Luzonwide quarantine.

“Because of the lockdown, there are a few trucks operating today to transport,” the statement read. “This is exacerbated by the truck ban and the number coding schemes. The issue today is not traffic, rather the delivery of cargoes: food and essential products, raw materials, exportimport cargoes.”

The industry groups also scored the Bureau of Customs for “downtime arising from inefficient servers” of the agency. It is important for Customs to improve its automation process, as delay or failure to issue documents on time is a factor to port congestion, they said.

Invoking Executive Order 172, Series of 2014, which declares the Port of Batangas and Subic Bay Freeport as extensions of the Port of Manila, industries likewise appealed to Transportation Secretary Arthur P. Tugade to now utilize the extension ports.

Last, they demanded that the Letter of Instruction 1005-A, Series of 1980, be terminated. The Marcos era LOI grants the government a share of 10 percent of gross income earned of all cargo contractors and port operators.

“The negative impact [or] damage such a policy brings to the economy is definitely greater than whatever the government does with the revenue it generates,” the statement read.

The statement was signed by industry groups, including the Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation Inc., Export Development Council, as well as the Supply Chain Management Association of the Philippines. The Joint Foreign Chambers of the Philippines was also a signatory.