Desperate measures at Manila

Word is that the Philippines Port Authority (PPA) will be fining importers for overstaying cargoes and then shipping the boxes out to buffer ports in a desperate attempt to relieve congestion.

Easing congestion: ICTSI’s MICT has been shipping containers out of Manila to Subic

PPA told the press that any unclaimed containers would be seized after a period of fifteen days and shipped off to Subic or Batangas and that it will continue to transfer containers until it has achieved its target of 60% yard utilisation.

The P5,000 (US$114.70) storage fee will apparently cover the cost of storage, transfer fees and other possible charges regardless of whether the cargo is in Subic, Batangas or Inland Clearance Depots (ICDs).

Meanwhile, the Manila truck ban put in place to try to control heavy traffic in the area and blamed for causing the congestion, has now been modified to try and speed up the process of getting boxes away.

PPA said that International Container Terminal Services (ICTSI), which operates MICT, has shipped around 3,000 overstaying containers out of Manila to Subic to further provide space for laden cargoes inside the MICT and MSH.

It’s also working towards completing its new Berth 7 to accommodate the expected surge in cargo volume in the run-up to Christmas and also to house the other empty boxes to be shipped out by foreign shipping lines.

Meanwhile, PPA is reportedly looking at rerouting cargo bound for the north and south of Luzon to help ease the problem further.

Apparently, a memorandum of agreement is due to be signed which will allow Subic Port to become an extension of Manila. The government is also said to be considering a similar arrangement with Batangas.

Congestion at Manila has resulted in higher prices of consumer goods and more recently it worsened to such a degree that President Benigno Aquino III was forced to convene a cabinet cluster to try to find a solution.

PPA said that back in June the number of laden containers piled up at the Manila ports totalled 99,000 teu occupying about 105% of the yard of the ports composed of the Manila International Container Terminal (MICT) and the Manila South Harbour. The total of empty containers reached a high of 22,000 teu.