Biz group urges swift action on shipping costs

Biz group urges swift action on shipping costs
LOGISTICS COSTS. Containers crowd a Philippine port as businesses call for measures to improve port efficiency, increase transparency in shipping charges and reduce logistics costs. / File photo
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PHILIPPINE businesses and consumers could see lower import costs if the government adopts proposed rules to curb shipping fees and port congestion, according to the country’s largest business group.

In a statement, the Philippine Chamber of Commerce and Industry (PCCI) urged the government to immediately sign a joint administrative order that would strengthen the Bureau of Customs’ role in regulating international shipping lines, container yards and other logistics providers.

Some importers have reported logistics costs rising to more than P100,000 per container from about P30,000 because of numerous ancillary shipping charges, PCCI vice-president for Industry Bryan Ang said.

“Those additional costs are ultimately passed on to Filipino consumers through higher prices,” Ang said.

The proposed order has completed public consultations and is undergoing final review by government agencies, PCCI said.

Under the rules, shipping lines and other covered companies would have to report all applicable charges to Customs, which would standardize logistics fee names and oversee allowable charges and fee limits.

The order would also require container deposits to be refunded within 15 days of the return of containers and bar shipping lines from withholding cargo over unpaid charges from separate transactions.

A 75 percent yard utilization threshold would be used to trigger measures to ease congestion until a permanent benchmark is established.

PCCI president Perry Ferrer called the order a long-overdue measure to address excessive and non-transparent logistics fees.

He urged the finance, transportation and trade departments, along with Customs and other agencies, to sign the order without further delay.

The government is targeting issuance of the order before cargo volumes rise seasonally later this year, PCCI said.

The business group said the measure could improve trade competitiveness, strengthen supply chain resilience and help reduce the cost of goods for consumers. / KOC

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