Foreign buyers, exporters raise concern over port congestion

MANILA, Philippines - Foreign buyers’ representatives and furniture exporters have raised concerns on port congestion and a new policy against colorum vehicles, citing delays in shipments and losses.

In a statement from the Philippine Exporters Confederation Inc., Foreign Buyers Association of the Philippines president Robert Young said the group’s members have pending exports worth $50 million that are being delayed due to road congestion.

“(These are) mostly department store merchandise items, apparel, housewares and furniture. Import materials are stuck in the pier so we can’t finish goods.

Then, the ready-to-ship goods are also stuck on the road due to congestion,” he said.

As shipment deadlines are missed, goods are airfreighted which entails higher costs.

“(So) we pay for air charges. This is a lot of losses,” Young complained, adding that some yellow plated truckers, which are the only ones allowed to transport goods, are taking advantage of the situation by imposing higher fees.

Joint Administrative Order (JAO) No. 2014-01 which imposes higher fines against colorum public utility vehicles issued by the Department of Transportation and Communications, Land Transportation Office and Land Transportation Franchising and Regulatory Board (LTFRB), he added, have worsened the congestion at the ports amid the truck ban policy of the City of Manila.

“With the implementation of the anti-colorum policy, it lessens the trucks that can pull out containers at the port. That makes it slower to decongest the seaports,” he said.

For his part, Chamber of Furniture Industries of the Philippines president Nicolaas De Lange said truckers providing logistics services are now rarelym available.

Even if they are willing to pay double the normal price, he said only a few truckers want to transport their shipments.

“They have to deliver a container here, leave it behind (because our customer requires fumigation and aeration after 24 hours) and pick up the full container the next day. What they want is deliver, load while waiting, then leave,” he said.

He also said the policy against colorum vehicles has increased costs of furniture and furnishings manufacturers.

In late February, the city government of Manila started to implement an ordinance which restricts trucks from using city streets from 5 a.m to 9 p.m., to ease traffic congestion.

Under the JAO No 2014-01 issued earlier this month intended to address the illegal operation of public utility vehicles, colorum bus operators would be fined P1 million; truck and van operators, P200,000; sedan operators, P120,000; jeepney owners, P50,000; and motorcycle operators, P6,000.

To mitigate the impact of the policies on the export sector, Young said the LTFRB should set up satellite offices in different areas to speed up the issuance of permits.

He also said transport organizations could help by providing satellite offices as they have a number of members with transport activities affected by the new policy.

“Expedite the release of yellow plates to all truckers and entrepreneurs.

Make an online application system to speed up the verification and processing of franchise,” he added.