More business groups oppose higher port storage fees

MANILA -Two more business organizations have opposed the plan of the Philippine Port Authority (PPA) to increase storage fees for foreign containerized cargos amid snowballing calls to junk the move that is seen to further bludgeon the export industry.

Foreign Buyers Association of the Philippine (Fobap) president Robert Young told the Inquirer that the planned move of the PPA would affect the prices of exported goods, many of which were already more expensive to produce compared with the merchandise of other countries.

“We strongly oppose this because, first, this will be another layer of expense for exporters. And for sure, this will be added to the cost of Philippine products that we export, and that will make them uncompetitive,” said Young, whose trade group exports about $1.5 billion worth of garments as well as $300 million worth of furniture and handicrafts annually.

Young said the added cost of storage rates could run in the billions of pesos each year for the industry.

In light of this, the Fobap official said they planned to submit a joint position paper with other groups, including the Philippine Exporters Confederation, Inc. (Philexport), to formalize their concerns.

Philexport president Sergio Ortiz-Luis Jr. earlier told the Inquirer that the move would increase the cost of doing business in the country.

Meanwhile, the Association of International Shipping Lines (AISL) has thrown its support to the other business groups assailing the PPA’s proposal, saying it would have a negative impact on the country’s export industry.

Rate hikes

“Our position is to go easy on exports [and] to help our exporters as their business is not doing very well even before the geopolitical tensions, which continue to prevail,” AISL president Patrick Ronas said in a message sent to the Inquirer.

The PPA is looking to increase by 32 percent the fees for import, export and transshipment containers, as well as impose a 150-percent surcharge on the corresponding storage rates with an increase for reefer containers.

READ:  PPA plans fee hike for container cargo

These storage rates are collected by the PPA when cargos remain in its facilities beyond the free storage period of five calendar days after the day that the last item is discharged from the carrying vessel for imported cargos.

For export cargos, assessment comes four calendar days from the day that the cargo is received at the port. For foreign transshipments, it is 15 calendar days from the day of arrival to the day of departure.

The proposed changes will see storage charges per day after the free storage period of five days for imported 20-footer boxes increase from P481.30 per day to P635.32 per day for the sixth to the 10th day.

For the 11th to 15th day, it will increase from P529.43 to P698.85, from P577.56 to P762.38 for the 16th to 20th day, from P625.69 to P825.91 for the 21st to 25th day, from P673.82 to P889.44 for the 26th to the 30th day and from P721.95 to P952.97 for the 31st day and beyond.

For exported boxes, the storage rates for a 20-footer after the free period will be changed from P60.15 to P79.40 per day for the fifth to sixth day, P120.30 to P158.80 for the seventh to 11th day, P132.33 to P174.68 for the 12th to 16th day, P144.36 to P190.56 for the 17th to 21st day, P156.39 to P206.43 for the 22nd to 26th day, P168.42 to P222.31 for the 27th to 31st day, P180.45 to P238.19 for the 32nd day and beyond.

For transshipments, the new daily storage charges for a 20-foot box after the free period will increase from the current $10.94 to $14.44 per day for the 16th to 20th day, $12.03 to $15.88 for the 21st to 25th day, $13.13 to $17.33 for the 26th to 30th day, $14.22 to $18.77 for the 31st to 35th day, $15.32 to $20.22 for the 36th to 40th day and $16.41 to $21.66 for the 41st day and beyond.

The PPA is also proposing to levy higher storage fees on all 35-, 40- and 45-foot foreign containerized cargos.