Exporters bat for creation of logistics sector watchdog

MANILA, Philippines–The Export Development Council has sought the establishment of a regulatory body to help curb exorbitant surcharges allegedly being slapped on exporters amid the continued congestion at the Port of Manila.

Citing the resolution of the EDC executive committee, the Philippine Exporters Confederation Inc. (Philexport) explained that this proposed body will help ensure that shipping lines will charge fair prices as the local export sector continues to reel from the higher logistics costs.

According to Philexport, exporters are unduly charged with container demurrage, storage and port congestion fees, among others, leading to an increase in costs ranging from $100 to $500.

“Trucking costs have increased by at least 100 percent to more than 300 percent without proper consultations with the stakeholders,” the committee said.

Apart from incurring additional and higher charges, exporters are still experiencing delays in shipments that range from weeks to a month, which translated to delays in production and delivery, lower productivity, and loss in revenue and employment. It was estimated that up to 5,000 workers were either laid off or forced to stop working for a period of time, the committee added.

The situation reportedly remained dire for exporters despite the progress being reported in decongesting the ports.

Creating a regulatory body, Philexport further said, will also oblige the shipping lines to have their own container yards.

Meanwhile, the EDC resolution also urged shipping lines to “allow the return of empty containers within two weeks; be responsible for the return of their empty containers from their customers’ yard; and reduce the period of overstaying containers in the port from 180 days to 30 days to avoid using the port as a container yard.”–Amy R. Remo