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