Exporters lose P20 M to port congestion

MANILA, Philippines - 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 (EDC), 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.  

Losses for the food sector for shipping exports via the more expensive air transport meanwhile, have amounted to at least P4 million.  

As for the electronics sector, revenue losses are pegged at $1,000 per metric ton, with revenues affected by the lack of export sales while  waiting for the earliest available vessel to depart Manila.  

The poll conducted from Oct. 7 to 21, looked at how port congestion affected the performance of exports of the following sectors: food, electronics, garments and home furnishing. 

Respondents were asked to provide data on additional costs per container, number of days delayed in delivery, number of days delayed in production, loss of business, loss of employment, and other issues since the congestion started.  

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.  

Food and garment exporters have cited delays of two weeks to a month, while those in the electronics sector said that instead of a 24/7   production schedule, some processes have to be stopped during   weekends.