PCC studies DTI request to probe charges by foreign shipping lines

The Philippine Competition Commission (PCC) needs more time and data to look into the request of the Department of Trade and Industry (DTI) to review excessive charges imposed by foreign shipping lines on Philippine importers and exporters as it is determining whether the matter is within its mandate.

PCC commissioner Johannes Benjamin Bernabe said in an interview the antitrust body recently met with the DTI to get a better understanding of the latter’s request to review excessive charges imposed by shipping lines on Philippine importers and exporters.

“We’re trying to find out, is there cartel? Is there collusion? Is there abuse of dominant position, meaning, is there a shipping line that is dominant or collectively dominant? That is the only way we can enter the picture,” he said.

He said if there are shipping lines asking importers and exporters to pay fees which are not supposed to be charged but there is no collusion or abuse, a different body may have to handle the matter.

“From our competition lens, we said we will look into whether there is collusion, whether there is an abuse of dominant position. But we need more data, we need time to study it,” he said.

He said the DTI would have to provide the PCC more data on its request.

Last month, the DTI said it made a request to the PCC to review the charges imposed by foreign shipping lines after the business community raised the issue to the agency.

“We are requesting the PCC, through chairman Arsenio Balisacan, to act on the concerns of the business sector regarding questionable destination and origin charges imposed on local importers or exporters. These excessive charges and fees are recurring issues that have brought significant negative impact on our local industries,” Trade Secretary Ramon Lopez said.

Based on a study of the DTI-Export Development Council and National Competitiveness Council last year, some international shipping lines have been implementing a pricing scheme with questionable destination and origin charges which local importers and exporters have to pay.

It showed some shipping lines have allegedly developed a scheme that makes freight cost less transparent and benefits exporters overseas.

The scheme is seen to affect competitiveness of local industries and estimated to cost the Philippine economy about $2 billion to $5 billion per year.

Lopez said Philippine exporters are affected the most by the excessive fees and so, their products become costly.

Consumers, he said, are also affected as they pay for the additional costs of imported goods passed on to them.