FPI questions ‘congestion charges’ imposed by shipping lines

MANILA, Philippines - The Federation of Philippine Industries (FPI) said it has uncovered anomalies in certain charges being imposed by several shipping lines and has asked the government to investigate the matter.

In a press briefing, FPI chairman Jesus Lim Arranza aired his group’s concern about the continued imposition by some shipping lines of port congestion surcharge (PCS) and similar charges.

“The so-called port congestion has been over but some shipping lines are still collecting congestion charges but with a different name. Perhaps, they could not let go the large amount they are collecting which is about P25,000 to P30,000 per container van,” Arranza said.

He said while some shipping lines discontinued the collection of the PCS, other types of charges have sprouted such as emergency cost recovery surcharge, container imbalance charge, equipment positioning services, container cleaning fee, documentation fee at destination, and terminal handling charge.

“It is okay if there is basis, if this is done during the time when there is port congestion. Now that they’re saying there’s no more port congestion, so what are those charges for? The conditions prevailing do not warrant charging those amounts,” Arranza said.

“It will only add up to the cost of the products shipped to us, whether it is raw material or finished product. It will definitely add up to the prices of goods sold to our Filipino consumers,” he added.

Data provided by FPI showed shipping charges in the country are much higher compared to other Asian countries.

Average shipping line local charges in Manila port currently stand at P27,159, while those in Cebu and Davao ports are at P26,426 and P22,053, respectively. Charges at Cagayan de Oro port average P16,191.

Meanwhile, average shipping line local charges in other Asian countries are much lower such as in Indonesia (about P4,737.89), Malaysia (about P5,634.10), Singapore (about P10,952.70), Thailand (about P9,288), Bangladesh (about P1,406.74) and Japan (about P12,540).

Arranza said the FPI delegation recently met with the Maritime Industry Authority (Marina) to discuss the matter but the agency said it is unsure as to whether it has control over shipping line charges.

However, Marina gave its word to invite shipping lines to explain the said charges, Arranza said.

“If it is not clear whether Marina should handle it or not, then let it be handled by the Department of Trade and Industry (DTI). DTI should wake up because it will affect prices of goods,” Arranza said.