Exporters of home decors see huge drop in revenues due to Manila’s truck ban

MANILA, Philippines - Revenues from home accent exports are expected to post an 80 percent  decline this year due to the truck ban being implemented by the Manila  City government. 

“(We see) 80 percent (income cut) due to additional shipping expenses imposed by truckers and we are left without a choice as we cannot go  back to our buyers and ask for merchandise price adjustment,” Home  Accents Group of the Philippines Inc. president Evelyn Tan complained. 

Local trucking firms have raised by as much as 50 percent their  hauling rates to make up for losses from shorter operating hours.   

This, as the Manila City government implements an ordinance which  bans trucks from plying city streets from 5 a.m. to 9 p.m.   

Tan said exporters have no other options, as some truckers refuse to  provide logistics service to new customers.   

She added exporters have to pay overtime for workers to  load and unload the containers in the Manila ports given the long  waiting time for trucks while the ban is being implemented.   

“When we told our buyers that we were having difficulty with the  trucks and have to attach the additional operating or administrative  costs, they said no. (They asked) how come other countries don’t have  increases, they have no problem on truck ban.  It is only you the Philippines,” she said.   

Tan said the Manila City government needs to implement efficient  rules and provide an environment conducive to exports.   

“(With the present system,) you don’t become competitive which is very  important. They should have a system that is export-friendly,”  Christmas Decor Producers and Exporters Association of the Philippines  president Rosario Dy said.   

Other private sector groups such as the Joint Foreign Chambers and  Semiconductor and Electronics Industries in the Philippines Inc. had  earlier expressed concern on the truck ban being implemented in Manila,  warning that such could lead to economic damage particularly when the  trade volume picks up this month and in June.   

“While we are supporting all efforts to better utilize the available capacities of the ports of Batangas and Subic, we know that there are  no options but to use the ports of Manila more effectively,” the  groups said.   

An estimated three million 20-foot equivalent units (TEUs) pass  through ports in Manila annually.   

The ports of Batangas and Subic, meanwhile, have a combined capacity of  800,000 TEUs.   

While firms have been encouraged to utilize ports outside of Manila, most still opt to use those in Manila as more shipping lines operate there. 

– Louella Desiderio