Cargo delays loom

The Philippine Ports Authority (PPA) is encouraging Philippines-based importers and exporters to make the necessary operational adjustments as it expects delays in the delivery of cargo following the partial closure of several ports in China due to COVID-19.

“We need to prepare. Eventually, the delays in cargo shipments will catch up with us due to the congestion being experienced in these transshipment ports,” said PPA general manager, Jay Daniel R. Santiago.

“We are encouraging all importers and exporters to take the necessary steps to adjust and secure their operations to mitigate the impact of the slowdowns or partial closures of the big ports in their overall operations.”

China domino effect

Ningbo-Zhoushan port has recently been forced to shut one of its terminals due to a COVID-19 outbreak, and now congestion is impacting other ports in China. Yantian port in Shenzhen was closed in May following a separate outbreak.

The majority of Philippine imports and exports pass through China’s transshipment ports, said PPA.

The Philippine major port gateways, meanwhile, are currently operating under optimum conditions and way below the threshold level of utilization set at 75%, noted PPA.

The Manila ports, composed of the Manila International Container Terminal and the Manila South Harbor are operating under normal conditions. The two ports have an average utilisation rate of 68% and 56%, and berth utilisation rate of 59% and 56%, respectively.

An average of 12,000 TEUs of foreign cargoes are being handled at the ports.

“PPA assures the shippers that Philippine ports, can handle the bulk of the delayed shipments when conditions at the transshipment ports start to normalize,” Santiago explained.