High charges being imposed in the country's seaports are contributing to the rising cost of basic goods, some shipping groups said as they urged the administration of President Ferdinand "Bongbong" Marcos, Jr. to look into it.
The group, composed of the Philippine Liner Shipping Association, the Philippine Coastwise Shipping Association, and the Philippines Interisland Shipping Association, said that while the shipping sector offered free freight and cargo service to ship packages to aid people in affected areas, the Philippine Ports Authority (PPA) still levied them unnecessary port charges.
With 95 percent of essential goods are transported via cargo freights on large shipping vessels all over the country, the group said the shipping industry plays an important role in our economy in ensuring that essential supplies reach their destination on time and within agreed maritime regulations.
The group said the PPA charges only contribute to the high prices of goods since the additional transportation costs are usually being charged to the consumers.
During the pandemic, the groups said PPA also increased port charges in various ports of the country, including the busy ports in Zamboaga and Tacloban, which resulted in in the increase in general cargo non-prime commodities’ handling cost by 371 percent to 406 percent.
Cost of containers also doubled and increased by 109 percent while prime goods as much as 91 percent. Similarly, general cargo and non-prime commodities handling cost in Tacloban also went up from 43 percent to 475 percent, while containers’ cost increased by 119 percent and prime goods up to 200 percent.
Other ports where PPA has Tier 3 port tarriff where similar increases were imposed include Iligan, Ozamiz, Calapan, Ormoc, Puerto Princessa, Legazpi, Surigao, Nasipit, Pulupandan, Matnog,Tagbilaran Tabaco, Calapan, Fort San Pedro Iloilo and Pasig River port.
The group claimed that shipping lines were not consulted by PPA before imposing increases in port charges and container handling.
Another concern of the large shipping group is that PPA is requiring them to link with the Authority’s system to be part of the Unified Electronic Ticketing System without consulting them first on the merits of the new policy, as well as the installation of tracking devices on their containers which would require container vans to proceed to another facility were the tracking device will be removed before exiting the country.
If this is implemented, the group said it would require additional trucking cost for the shipping lines, which will be passed on to consumers.
Following these policies, the group said they have no option but to adjust their cargo surcharges, leading to higher prices of all essential and prime goods such as rice, sugar, and flour, which will then be borne out by the consumers.
The shipping group said if the new administration wants to revive the economy and help consumers survive the increasing prices of commodities, they need to make it easier for the shipping industry to move goods and cargo without enforcing high tariff and port charges.