DOTr creates an office against unreasonable shipping charges

The Department of Transportation (DOTr) creates an office against unreasonable charges to be known as the Shippers’ Protection Office (SPO). 

Under DOTr Department Order (DO) 2020-008, the established SPO will serve as a body that will protect and assist shippers, both international and domestic, against unreasonable fees and charges imposed by international and domestic shipping lines. This applies to all complaints and issues related to the rates, charges, practices and operations of international and domestic shipping lines in the country.  

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DOTr issued department order to minimize demurrage charges

The Department of Transportation (DOTr) issued Department Order (DO) 2020-009 to minimize demurrage charges.  

This DO prescribe a minimum free time period of eight (8) days for cargoes unloaded by international shipping lines in any port throughout the country. This is a development from the five (5) days previously granted by the international shipping lines before charging demurrage. 

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DOTr requires domestic shipping lines to provide cargo space allocation for agricultural and food products 

The Department of Transportation (DOTr), under their DO 2020-007, requires domestic shipping lines to provide cargo space allocation not less than 12% of their vessel’s cargo capacity per voyage for agricultural and food products.

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Transport & Logistics Stakeholders air recommendations to facilitate flows of goods amidst COVID-19

The issues and challenges faced by the transport and logistics sector were discussed last 15 April 2020, during the 3rd eForum of #ResilenceAndRecoveryPH with the topic “Local and Global Supply Chains: Quick Assessment and Ways Forward”.   Continue reading “Transport & Logistics Stakeholders air recommendations to facilitate flows of goods amidst COVID-19”

New route for Mindanao Exporters Promoted 

Exporters from Mindanao are encouraged to explore the Davao-Manado route for transporting their goods and products, specifically food products (both fresh and processed) for a more cost-effective and shorter route (from 5 weeks to 13 days). This was presented during a meeting hosted by Philippine Ambassador to Indonesia, Amb. Leechiong T. Wee, as both countries – the Philippines and Indonesia are also trying to explore ways to resume the Davao-GenSan-Bitung route with a Manila-based shipping company.

The new route is being used and touted as an express line for direct to market shipping route by the Reefer Express Line, Inc., a new player that plans to begin operating the new route within the first half of this year. But operations will commence depending on the negotiations between the shipping company and exporters from both countries.

The shipping company also revealed its plan to serve the new route with additional calls on other ports not only in Indonesia but also in Malaysia and Brunei en route to Singapore. However, the company said that they have yet to discuss the final details with other shippers from the Philippines, Indonesia and other players from Malaysia.

Moreover, the new route was considered a priority of the current administration and the Indonesian government, citing that Manado is the main gateway of Indonesia to the Philippines. Hence, the call for exporters to explore the new route and the services of Reefer Express Line, Inc. – GTM

Battling Congestion with Intelligent Transportation System 

During his Government Address on The Roads and Traffic Expo, Chairman Danilo Lim of Metro Manila Development Authority (MMDA) talked about the importance of transportation as one of the key sector in our fast growing economy.

Classified as a Mega City by the United Nation, Metro Manila with its 13 million populations and still growing is seen to worsen and affect the current transportation and road system. Based on the Department of Public Ways and Highways (DPWH), the road system in Metro Manila only increased 7% in the past 10 years, having only 1167km from 1087km back in 2008. In relation, the recent study conducted by the Asian Development Bank (ADB), Metro Manila ranked as the most congested city among the 278 developing cities in Asia. Placing first in the “Relative Congestion in ASEAN cities with populations greater than 5 Million” using the average of 1.24, Metro Manila get an average of 1.5.

To battle congestion and related transportation problems, the Philippine government in partnership with Japan International Cooperation Agency (JICA) came up with the Intelligent Transport System, a 5 year comprehensive traffic management plan that aims to complete the data driven analysis of the current traffic structure in Metro Manila with the goal to improve the mobility, connectivity, and safety of Filipinos.

JICA allocated 7% out of their USD 1 trillion outstanding loan for the Philippine alone. JICA and the Philippines currently have 27 ongoing projects totaling USD 15 Billion and 16 out of the 27 ongoing projects are related and allocated for transportation sector alone; with an estimate of amount of Php 375 Billion commitment.

With this assistance from JICA as well as the “Build Build Build” program by the current administration, MMDA Chairman Lim is positive they could “Battle” the Metro Manila congestion. – KJC

Logistics stakeholder presents update to improve logistics industry

The President of Multimodal and Logistics Association Inc. (PMTLAI) Ms. Marilyn C. Alberto, reported during the 2nd Logistics Services Philippines Conference and Exhibition (LSPH) that the issuance of the Joint Administrative Order (JAO) which focuses to address the problems on high shipping cost and port congestion will be the “long term solutions to the problems that affects the logistics services ability to enable business competitiveness.”

The JAO was spearheaded by the Department of Trade and Industry (DTI), Department of Transportation (DOTr), who already signed the JAO, as well as Department of Finance (DOF), together with the Bureau of Customs (BOC), and Philippine Port Authority (PPA).  DTI Secretary Ramon Lopez remarked during his keynote speech that the JAO will be transformed into an Executive Order (EO).

Since the pronouncement of the JAO, PPA issued a detailed regulation thru PPA Administrative Order (AO) 002-19, addressing the transfer of overstaying import shipments in Manila South Harbor and Manila International Container Terminal to maintain the utilization rate.

Likewise, BOC also issued a Customs Memorandum Order (CMO) 13-2019 that provides the interim guidelines on the return of the empty containers at the Port of Manila and Manila International Container Port to avoid port congestion; also stating that the international shipping lines must ensure sufficient containers space for their empties.

The 2nd LSPH organized by the DTI was held last 15 July 2019 at the Philippine International Convention Center. – KJC