Manila ports congestion costs exporters millions

Manila: Congestion at Manila’s ports has cost food and garment exporters in the Philippines between P13.5m to P20.2m ($300,000 to $449,000) in cancelled orders and lost business opportunities, despite authorities’ efforts to ease traffic.

Revenue losses for the electronics sector have been pegged at $1,000 per tonne.

The findings have been published in a report by the Philippines' Export Development Council (EDC), which conducted a survey on the impact of port congestion on exports of food, electronics, garments and home furnishing. The research was conducted from October 7 to 21.

Revenues were worst affected by the lack of export sales while waiting for the earliest available vessel to depart Manila.

Delays in the delivery of shipments and in the berthing schedule, and the increase in port-to-port transit time range from at least one week to a month and a half, the survey found.

Exporters are now being hit by additional surcharges such as imbalance equipment surcharge, emergency cost recovery surcharge, and import congestion container surcharge.

Trucking costs have also increased by 100% to 300%.

Earlier this month, the Philippine Ports Authority (PPA) temporarily reshuffled berthing arrangements in order to ease port congestion. Vessels designated to call at the Port of Manila have been diverted to South Harbor or Subic Bay Freeport until November 30. [24/11/14]

 

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