Forwarders, business community to question ‘port congestion fee’

CEBU, Philippines – The Philippine International Seafreight  Forwarders Association (PISFA-Cebu) has joined hands with the big business organizations in Cebu in drafting a position paper that would question the high cost of shipping fees for the release of imported goods from the Port of Cebu.

The Cebu Chamber of Commerce and Industry and the Mandaue Chamber of Commerce and Industry will join the PISFA-Cebu in sending the position paper to the concerned government agencies in questioning unconscionable charges of shipment by big shipping companies on top of the usual Container Imbalance Charge.

PISFA-Cebu president Carmel Salvador yesterday said her group and the two business chambers in Cebu and Mandaue question the imposition of additional charge of at least P15,000 denominated as "port congestion fee" per container which is imposed by the Department of transportation and Communication and the Bureau of Customs. This, she said despite the fact that there is no congestion in the Port of Cebu.

According to Salvador, this unnecessary fee, on top of other charges imposed by shipping companies, is making imported goods much more expensive, among other downside effects.

Salvador said because of the worsening port congestion in Manila, most importers are now diverting their cargoes to Cebu port and transship them to Manila.

She said cost of imported goods is expected to be a bit higher especially this Christmas season because of this additional charges incurred in shipping them from the countries of origin.

While importers are faced with the high cost of shipping charges, exporters have likewise incurred losses worth at least P20.2 million due to port congestion in Manila.

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 that food and garment exporters have estimated 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.