ICTSI, ATI increase cargo rates by 10%

The International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI) increased again their cargo handling rates yesterday, a year after a similar hike in 2001.

Based on the memorandum circular 47-2001 of the Philippine Ports Authority (PPA), ICTSI and ATI imposed yesterday a 10-percent increase in arrastre and stevedoring rates on containerized cargoes and a 10-percent increase for arrastre and a 15-percent increase in stevedoring rates for non-containerized cargoes.

ICTSI and ATI operate the Manila International Container Terminal and the South Harbor, respectively.

The rate increase, which was to take effect on Jan. 12, 2002, was suspended for 15 days by PPA general manager Alfonso Cusi because of the opposition of the Coalition for Shipping and Ports Modernization, which is made up of nine organizations, including the Philippine Chamber of Commerce and Industry and the Export Development Council headed by Trade and Industry Secretary Manuel Roxas II.

The PPA suspension ended yesterday.

As a result, the coalition has appealed to President Arroyo to stop the PPA from arbitrarily increasing cargo handling rates without going through due process.

In particular, the group is protesting the two rate increases which were imposed within a year of each other and were passed without public hearing.

The first rate increase was passed on Jan. 11, 2001 through a PPA resolution approving a 10-percent across-the-board and nationwide increase in cargo handling rates effective Feb. 1, 2001.

In a letter submitted last Feb. 4 to the President, the coalition noted the latest rate increase by ICTSI and ATI "goes against the commitment (of President Arroyo) during the Economic Summit (last Dec. 10, 2001) to bring down the cost of moving goods."

The coalition also noted the most recent hike in cargo rates is separate from new petitions made by ICTSI and ATI for a 25-percent increase.

"This means the public will have to brace itself for another 25-percent increase in the very near future, if and when the new petitions are approved," the coalition said.

Based on industry estimates, annual rate increases from 1998 to 2002 have increased cargo handling costs by 80 percent for foreign cargoes and 52 percent for domestic cargoes. On the average, cargo handling accounts for 46 percent of total shipping cost.