Cargoes, some holding food, stuck in Manila port amid lockdown —ICTSI

ICTSI Executive Vice President Christian Gonzalez said that while their company is willing to continue operation despite the negative impact of the health crisis on their business, the high volume of overstaying containers made it difficult to “operate in an efficient manner.”
Edd Gumban/File

MANILA, Philippines (UPDATE 2 9:40 a.m., March 28) — Manila’s largest port operator is beginning to feel the crunch of the Luzon-wide community quarantine barely two weeks in, with cargoes, some containing food, left sitting idly by businesses that halted operations as a result of the month-long lockdown.

“We understand that it is unfeasible for some, and many businesses have been temporarily shut down, but without the full support of everyone that is able to open, we will come to a point when efficient operations will no longer be possible,” the International Container Terminal Services Inc. (ICTSI) said.

The logistics company’s complaint was contained in a letter dated March 27 by executive vice president Christian Gonzalez to cargo owners, a copy of which was shared on Twitter by the Philippine Exporters Confederation. 

From March 1 to 26, Gonzalez said 8,201 containers cleared for release are still in the Manila International Container Terminal (MICT) in Port Area, Manila. Of the total, 850 of which are refrigerated containers containing food which may end up rotting in the port if not picked up immediately.

On top of these, Gonzalez also asked port management to destroy over 7,000 “overstaying” containers “for more than 30 days,” some of which had been cleared for release as early as 2010, and only adds to port congestion. 

MICT is the country's largest international container port, which captures 65% market share in the Port of Manila in terms of cargoes.

“Containers are simply not being removed from the terminal,” he said.

“Unfortunately, we have come to a point where it is becoming impossible to operate in an efficient manner,” he added.

Gonzalez made the appeal three days after the Bureau of Customs ordered the temporary closure of a building in the terminal for disinfection, after one of its employees tested positive for the contagious coronavirus disease-2019 (COVID-19). The rest of the terminal remain in operation.

In the same Customs memorandum dated March 24, the agency assured traders that terminal operations will remain business-as-usual and advised its employees to do transactions online instead through the Customer Care Portal and Goods Declaration and Verification System.

“Further, all MICP importation will still be processed by its personnel and employees,” Customs said in a statement at the time.

Release of PPEs, medical supplies fast tracked

Meanwhile, at the Ninoy Aquino International Airport in Pasay City, Customs also ordered its personnel to speed up clearing and release of the 57,600 COVID-19 testing kits donated by Chinese tycoon Jack Ma through the Manny Pacquiao Foundation of Senator Manny Pacquiao.
 
All other ports in Manila, Clark, Cebu, and Limay in Batangas were likewise told to “expeditiously” release cargoes containing personal protective equipment for health workers and other medical supplies vital to COVID-19 response.

“We will all overcome this crisis but a quick return to economic normalcy will only occur if we all continue to play our part in keeping maritime cargo flowing,” ICTSI’s Gonzalez said.

 

Editor's note: We amended this report to reflect that only a building in the MICT, and not the entire terminal, was closed down by the Bureau of Customs for disinfection after an employee was diagnosed positive for coronavirus disease-2019. In its statement last March 24, Customs only said that "the port shall be temporarily closed," without specifiying that only a building will be shut down. ICTSI made the clarification in a statement evening of March 27.

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