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Manila Bulletin devider Business devider Trade & Industry devider Higher storage fees for foreign cargoes start Jan. 6

Higher storage fees for foreign cargoes start Jan. 6

Published Jan 5, 2024 09:17 am

The Philippine Ports Authority (PPA) will start collecting the 32 percent increased storage fees for foreign container cargoes in all PPA-managed ports starting Saturday, Jan. 6. 

The Philippine Exporters Confederation Inc. (Philexport) said in its newsletter Friday, Jan. 5, that the higher storage fees were approved through PPA Memorandum Circular (MC) No. 021-2023, issued last Dec. 6, and pursuant to PPA Board Resolution No. 3261.

The new policy follows a 32 percent increase for import, export, and transshipments containers, as well as 150 percent surcharge of the corresponding storage rates with increase for reefer containers. 

Storage charge is issued on "articles, baggage, and containers for storage in the port premises, cargo shed, and warehouse of the government."  

The agency explained that the storage charges for foreign cargoes are determined when foreign containers, including import and export cargos and transshipments, remain at PPA ports beyond the free storage period (FSP).

The FSP for import cargoes (20-footer foreign containers) is five days upon discharge of the cargo from the carrying vessel. 

Under MC No. 021-2023, port users with import cargoes will pay P635.32 per day (from P481.30) for the sixth to 10th day;   P698.85 (from P529.43) for the 11th to 15th day, P762.38 (from P577.56) for the 16th to 20th day; P825.91 (from P625,69) for the 21st to 25th day; P889.44 (from P673.82) for the 26th to 30th day; and P952.97 (from P721.95) for the 31st day and beyond. 

Meanwhile, FSP for exported boxes is four days upon receiving the cargo. 

The new export cargo daily rates are as follows: P79.40 (from P60.15) for the fifth to sixth day; P158.80 (from P120.30) for the seventh to 11th day); P174.68 (from P132.33) for the 12th to 16th day; P190.56 (from P144.36) for the 17th to 21st day; P206.43 (from P156.39) for the 22nd to 26th day; P222.31 (from P168.42) for the 27th to 31st day; and P238.19 (from P180.45) for the 32nd day and beyond. 

Morever, FSP for transhipments of dry containers is 15 days upon its arrival at the port. 

The increased charges to be paid are $14.44 per day (from $10.94) for the 16th to 20th day; $15.88 (from $12.03) for the 21st to 25th day; $17.33 (from $13.13) for the 26th to 30th day; $18.77 (from $14.22)  for the 31st to 35th day; $20.22 (from $15.32) for the 36th to 40th day; and $21.66 (from $16.41) for the 41st day and beyond. 

Higher charges will be levied on 35-, 40-, and 45- foot foreign container cargoes.

The fee hike was initially met with resistance from port users and trade groups such as Philexport and Supply Chain Management Association of the Philippines (SCMAP). 

Both groups said that the 32 percent increase was "too high and would hurt the economy and the stakeholders already facing inflation and a weak global economy."

They also noted how the fares would be an added burden to port users due to other fare hikes and rising costs of commodities.

However, the PPA said that the increase in storage fees "would ensure optimal use of the yard and encourage immediate withdrawal of containers to prevent congestion." 

 

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