BOC: No congested ports yet, but preventive measures needed
MANILA, Philippines — The Bureau of Customs (BOC) maintained that Philippine ports are not yet congested and remain manageable. But the agency said yard utilization rates above 85 percent already serve as a red flag that warrants early crisis management measures.
As of Feb. 23, the BOC reported, the overall yard utilization rate stands at 88.56 percent at the Manila International Container Port (MICP) and 78.03 percent at the Port of Manila.
Other major ports, meanwhile, are operating at lower levels as of Feb. 19. This is pegged at 49.6 percent in Batangas, 60 percent in Subic, 33 percent in Cebu and ranging from 0.6 percent to 68.34 percent at ports in Davao.
“The BOC remains ready to activate crisis management protocols should utilization reach critical levels, but as of current data, operations remain manageable and stable, consistent with the BOC’s commitment to ensuring efficient port operations,” the agency told the Inquirer.
READ: BOC calls on shipping lines to remove overstaying containers in ports
In an interview, BOC Commissioner Ariel Nepomuceno said that while current rates at Manila ports are already a red flag, they are not yet considered congested. Ports will be considered as such if rates breach the 90-percent mark.
“We are still reconciling the definition of port congestion. We should expand the understanding of why we have this problem,” Nepomuceno said in a round table talk.
“This isn’t solely the fault of BOC or port operators. We should also look at highways and roads. We have to see the entire environment. We’re not a manufacturing-based economy; we’re net importers. We import so much, but our ports haven’t expanded accordingly,” he added.
The BOC chief explained that population and trading activity have increased since the last congestion a decade ago, while road capacity has remained the same.
Nepomuceno also noted that the issue is cyclical, with periods of lower trading followed by high trading seasons.
“This is the reason why we convened port users, brokers, shipping lines, trackers and importers last week. They all have different interests,” he said.
Search for solutions
Last Feb. 13, the agency held a stakeholders’ meeting to identify immediate and long-term solutions to port utilization issues. It reviewed key factors that affect operational capacity, cargo dwell time, vessel traffic volume and overall port efficiency.
After that, the BOC called on the Association of International Shipping Lines, Inc. (AISL) to strictly enforce the 90-day container dwell time under Customs Administrative Order (CAO) No. 8-2019. This followed reports that several empty containers had exceeded the prescribed period.
READ: Port congestion problem sends exporters reeling
Asked about proposals to cut this dwell time to 60 days, Nepomuceno said such a change would require a department order, which is beyond his authority.
“Shipping lines should use the container yards. They should not overstay in ports. That’s why ports are congested because it’s cheaper for shipping lines to stay there instead of moving containers elsewhere. It’s complicated,” he said.
Looking ahead, the BOC vowed to advance “practical, low-hanging interventions” to prevent congestion from worsening.
“These include pursuing the issuance of a CAO on the accreditation of container yards, which will require real-time reporting of yard capacity and utilization to strengthen monitoring and enable earlier operational controls as thresholds are approached,” the BOC said.
“The BOC will also institutionalize quarterly coordination and forecasting meetings with international shipping lines and port stakeholders to prepare for months historically prone to higher utilization,” it added. INQ
