Traders still burdened by port-logjam charges

The removal of the port-congestion surcharge (PCS) by shipping lines and the reduction in trucking fees would not be enough to boost the competitiveness of businessmen, according to local and foreign traders.

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, said businessmen are still in a bind as they continue to pay for other fees imposed by shipping lines at the height of the port-congestion problem.

“There are three or four other surcharges aside from the PCS. [Shipping lines] have to remove other fees, like the Emergency Cost Recovery Surcharge [ECRS],” said Alfredo M. Yao, president of PCCI.

Yao estimated that the additional surcharges, including a random container-cleaning fee, that were slapped during the peak of the port-congestion problem, amounted to $600 to $700 per twenty-foot equivalent unit (TEU). Other charges that continue to burden business groups include terminal-handling fees, container-deposit fee and container-detention charges. Twelve major shipping lines, including Danish shipping giant Maersk, have withdrawn the PCS starting May. The ECRS, however, which amounts to $200 per container, is still being collected by shipping lines.

In a meeting with traders, shippers and business groups last Friday, the consumer-protection arm of the Department of Trade and Industry (DTI) has pledged to look into the components of shipping charges. Meanwhile, shippers, represented by the Association of International Shipping lines (AISL), said they are reviewing the possible removal of the ECRS.

Maximino T. Cruz, General Manager of AISL, said during the meeting that not all shipping lines collect the ECRS. Cruz maintained that the association cannot intervene in the decision of shippers to impose fees.

“We cannot interfere with the commercial decision of members but what we can do is dialogue with them if they think it is the proper time to remove the ECRS,” said Cruz during a news briefing following the meeting. Shipping firms and the DTI will meet again in the following weeks to review the proposal.

“Shipping lines were urged to remove what was considered unreasonable continued imposition of ECRS; it is a serious concern,” Trade Undersecretary Victorio Mario A. Dimagiba said. On the part of truckers, the Confederation of Truckers Association of the Philippines has issued a new schedule of rates which reflect a reduction of between P1,000 to P2,000 per 20-foot and 40-foot container unit.

While shipping lines and truckers are gradually reducing or removing their fees altogether, an official of the Philippine Economic Zone Authority (Peza) said locators are not yet satisfied. The Peza official, who declined to be named, said charges must be reduced further to ease the burden of traders. Locators are hesitant to go into expansion mode given the losses and additional expenses they have incurred due to the port congestion problem. –Catherine Pillas, Businessmirror