Cebu port congestion looms? Seafreight forwarders call on authorities to fast track system

CEBU, Philippines - While port congestion has not reached alarming levels in Cebu unlike Manila, the diversion of international cargoes to the Cebu port, however, may create problems of delays if not given serious attention by authorities.

Philippine International Seafreight Forwarders Association – Cebu Chapter Inc. (PISFA-Cebu) president Carmel de Pio Salvador said that because of the worsening port congestion in Manila, most importers are now diverting their cargoes to Cebu and ship them locally going to Manila.

Although, this diversion of cargoes have yet to disrupt the flow of the Cebu port, Salvador made an appeal to the Bureau of Customs, and OPASCOR (Oriental Port Allied Services Corporation) to improve their system in releasing the cargoes to avoid delays that may also led to congestion.

"So far, the flow of cargoes at our port is still manageable. What we are appealing is for the authorities to fast track processing so we can accommodate more coming cargoes, at the same time Cebu could also increase its revenue collection," said Salvador.

From the usual route of country origin to Manila port, most international cargoes are now diverted to Cebu. These cargoes are shipped locally from Cebu port to Manila.

Because of this, cost of imported goods are expected to be a bit more expensive especially this Christmas season, due to high cost of shipment, and other additional charges.

Salvador explained that aside from the usual international charges, importers are now paying additional shipment charge (from Cebu to Manila). On top of the estimated P54 thousand congestion fee charged by the association of shipping lines.

Meanwhile, exporters have incurred losses worth at least P20.2 million due to the   congestion at Manila’s ports.

Citing a survey on the impact of port congestion to export industries   conducted by the Export Development Council, the Philippine Exporters Confederation, Inc. said in a statement food and garment exporters have estimated their losses from cancelled orders and lost opportunities at around $300,000 to $450,000 (P13.5 million to P20.2 million)   since the port congestion began.

In terms of additional costs, the survey showed that exporters now pay additional surcharges such as imbalance equipment surcharge, emergency cost recovery surcharge, and import congestion container surcharge,   while their trucking costs have increased 100 to 300 percent.

Delays in delivery of shipments, delays in berthing schedule, and increase in port-to-port transit time range from at least one week to one and a half month.

Port congestion has likewise affected production as exporters have to wait for shipments of raw materials. (FREEMAN)