Phillippines amends cabotage law to allow international competition

Manila: The president of the Philippines Benigno Aquino III today signed the country’s new Competition Act and amendments to its cabotage law, which aims to lower shipping costs for both export and import cargoes.

The amended cabotage law now allows foreign vessels to transport and co-load foreign cargoes for domestic transshipment.

Before the amendment, it was more expensive to ship products domestically within the Philippines than to export them abroad. Exporting containers from Davao to Indonesia cost around $550 per teu, whereas the cost would be $1,200 to $1,300 per TEU for domestic transshipment, according to estimates from the Mindanao Development Authority (Minda).

“We consider the amended Cabotage law as a welcome development because this has been a problem of the private sector, especially those who are into the shipping industry and those who regularly ship their products to and from Davao City,” Antonio T. dela Cruz, president of Davao City Chamber of Commerce and Industry Inc (DCCCII), told local press.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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