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.