Category Archives: Transport and Logistics

The Networking Committee on Transport and Logistics (NC-TL) aims to identify, discuss issues and monitor government policy implementation and reforms involving transportation and logistics as necessary elements of a successful concerted national exports development program and recommend courses of actions to the Export Development Council.

Shippers to observe the Verified Gross Mass on all packed containers

 All shippers will be directed to observe the Verified Gross Mass (VGM) on all packed containers. The shipper will be responsible for obtaining and documenting the VGM of the packed container cargoes under the Philippine Port Authority (PPA) proposed revised guidelines on the implementation of mandatory weighing of export containers.

The shippers referred to in the revised policy is the “legal entity or person named on the bill of lading or sea waybill or equivalent multimodal transport document (e.g. “through” bill of lading) as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a shipping company”. Continue reading Shippers to observe the Verified Gross Mass on all packed containers

Roadmap launched to empower Philippine cold chain industry

The Philippine Cold Chain Roadmap has been launched with the primary objective “to guide the industry in the coming years and adapt to the “new normal” situation.”
This is the offshoot of the collective efforts made by various industry stakeholders that started in 2019. The Board of Investments (BOI) together with the Cold Chain Association of the Philippines, Inc. (CCAP) and Department of Agriculture (DA), other concerned government agencies, and private individuals collaborated to showcase the following: where the industry is at present, where the industry would like to go, and what are the plans to get there to sufficiently meet local demand and customer requirements and empower the industry.

Continue reading Roadmap launched to empower Philippine cold chain industry

ASEAN-JAPAN Centre underscores the need to strengthen Global Value Chains  (GVCs) towards resilience

ASEAN-Japan Centre (AJC) Secretary-General Fujita Masataka reported that many countries had felt disruptions of supply chains in this time of the pandemic.  Hence the series of calls at the international and regional level for strengthening and rebuilding of value chains such that of the G20 Actions to support world trade and investment in response to COVID19 on 14 May 2020, and the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID19 pandemic on 19 June 2020. Continue reading ASEAN-JAPAN Centre underscores the need to strengthen Global Value Chains  (GVCs) towards resilience

Bill creating Transportation Safety Board nears enactment

The legislation creating the Philippine Transportation Safety Board is nearing enactment after hurdling the House Appropriation Committee on Wednesday, 18 November 2020. The bill was previously approved jointly by the Transportation and Government Reorganization Committees. The Senate has earlier approved its version on the third and final reading.

The PTSB shall be a non-regulatory and autonomous agency attached to and under the general supervision of the Office of the President. It shall be the primary agency responsible for the conduct of impartial investigation on transportation-related accidents and incidents. The main
objectives of the PTSB are: (a) to improve transportation safety measures that will help in the prevention of transportation accidents and mitigation of dangers to human lives and property; and (b) to ensure the implementation of transportation safety standards. Continue reading Bill creating Transportation Safety Board nears enactment

Export shipment tips for saving up and managing freight Cost

Exporters were given tips on how to save up and manage their freight cost in the recently conducted forum of the Center for International Trade Expositions and Missions (CITEM) as a part of the capacity and community building activities for FAME+. CITEM Executive Director Ms. Pauline Suaco-Juan stated that one of the prevailing issues that exporters face is the shipping cost. Speakers of the said forum provided the necessary information to help exporters in navigating costs and consolidation in shipping.

Ms. Marilyn Alberto of the Philippine Multimodal Transport and Logistics Assoc., Inc. (PMTLAI) said that the law of supply and demand affects airfreight pricing especially at this time of pandemic as flight frequency has been reduced. Following are some tips given by Ms. Alberto to ensure efficient shipping by air amid challenges:

Continue reading Export shipment tips for saving up and managing freight Cost

PPA proposes rates for out-of-gauge cargoes and foreign empty containers   

The Philippine Ports Authority (PPA) presented their proposed arrastre, stevedoring, and storage rates for out-of-gauge (OOG) cargoes, and arrastre rates for empty foreign containers during their 1 October 2020 public hearing.

The proposed OOG rate will be using the multiplier factor of 3. Meaning, for the existing arrastre fee of a 20-foot container amounting to Php 3,516.00, the proposed OOG rate will be Php 10,548.00.

PPA justified that the 300% increase is based on the reason that while a regular 40-foot container’s average freight amount is approximately $500, a 40-foot OOG container’s average freight amount ranges from $1300 – $2500 for the equivalent route, depicting 2.6x to 5x surcharge. This then provides an average surcharge of 3.8x.  Continue reading PPA proposes rates for out-of-gauge cargoes and foreign empty containers   

ARTA launches program NEHEMIA for the logistics sector

The Anti-Red Tape Authority (ARTA) launched Program NEHEMIA for the Logistics Sector, making it the third sector launched among the five identified sectors under the program.

ARTA’s Program for National Effort for the Harmonization of Efficient Measures of Inter-Related Agencies (NEHEMIA) is a sectoral-based streamlining effort aimed to reduce time, costs, requirements, and procedures in the government sector. One of the five identified sectors is the logistics sector, along with the common towers and interconnectivity sector, the housing sector, the food pharmaceutical sector, and the energy sector.

One initiative under this program is the replacement of multiple stickers on trucks/cargoes with a unified logistics pass in the form of QR code that will be issued by LTFRB. ARTA’s Deputy Director General and EDC-NCTL’s Co-Chair Atty. Ernesto Perez elaborated, “The cargo that will be issued of this pass will be recognized by the ports, and also by other government agencies and LGUs, allowing it unimpeded from its point of origin to its point of destination”.  Moreover, he added that they “will make sure that there will be no duplication of requirements.”, and there will be a substantial reduction in the steps of the procedure to 73%, and the number of days processing from 271 days to 35 days (87% reduction) for land transport only.

This system is also said to be integrated with the Central Business Portal and BOC’s E-TRACC System.

DOTr Secretary Arthur Tugade expresses the Department’s full support and commitment to the project, reiterating that its objectives are aligned with their goals to remove red tape and reduce processing time.

Other than Sec. Tugade, DTI Secretary Lopez, DILG Undersecretary Densing, and Cabinet Secretary Nograles also graced the event and expressed support through their speeches. As CabSec Nograles stated, “The development of issuance of a unified logistics pass will allow free and faster movement of goods from point to point. On the other end, we hope to achieve the target of a 52% decrease in steps, requirements, cost, and time for government services in the logistics sector and eliminate the silo system and the lack of interconnection among agencies. This is aligned under the Philippine Development Plan, ensuring people-centered, clean, and efficient governance, specifically on achieving interoperability of government processes of becoming one connected government.”

“The train of red-tape is indeed on the move; inside it are the hopes and aspirations of the Filipino people for a more streamlined, and e-governance centered government.”, said ARTA Director-General Jeremiah Belgica.

This initiative “will not just lessen the cost of transport, this will also give more employment opportunities to help our MSMEs. It is also seen to lessen the price of commodities, benefiting not only the country but the people whom we owe our loyalty and service as public servants.”, added Deputy Director General Perez. KJDA

Online System for all port processes and payment made mandatory thru Joint Memorandum Circular

The online filing, processing, and payment of port charges and other related fees is now made mandatory through a Joint Memorandum Circular (JMC). With the JMC, it is now mandatory for all port users to file their applications online for permits and clearances for the release of cargoes from PPA, BOC, and other port operators including International Container Terminals Services, Inc. (ICTSI), Asian Terminals, Inc. (ATI), and Harbour Centre Port Terminal, Inc. (HCPTI); and payment of corresponding fees shall be done through the accredited banks and payment channels.

Upon online payment, digital copies of the official receipts (OR) will be transmitted through different electronic platforms. These ORs shall suffice and be recognized as proof of liquidation, billing, and payment.

Another key feature of this JMC is the mandatory electronic processing of gate passes that can be printed by the client at their own locations. This gate pass shall allow the cargoes to pass through except in cases when there is derogatory information that has to be validated by the BOC – Piers and Inspection Division (PID) Personnel.

Moreover, this JMC puts the protocols into writing in case of a system failure; to prevent the possibility of having port congestion, and impediments on the movement of cargoes that leads to loss of resources and revenues.

For complaints, issues or problems, Clients may contact through the following platforms:

The virtual signing ceremony of the JMC happened on 5 August 2020 via zoom led by the Anti-Red Tape Authority (ARTA), with the Bureau of Customs (BOC), Department of Trade and Industry (DTI), and Philippine Ports Authority (PPA). –KJDA

SCMAP advocates to abort NORTHPORT’s New Berthing Procedure due to doubling costs

The Supply Chain Management Association of the Philippines (SCMAP) advocates to abort NORTHPORT’s new berthing procedure as it doubles the costs of doing business making the prices of goods more expensive for the consumers.

Accordingly, this new berthing procedure compels all container vessels to berth at the Terminal 1 of the NORTHPORT, and imposes the use of their quay cranes regardless if the ship has its own crane. The cranage fee summates up to Php 1,587 (VAT inclusive) for 10 and 20 footer containers, hence adding 88% more to the current cargo handling rate of Php 1,800. This added cost and procedure is contrary to the ease of doing business.

The group appealed that the fees imposed must be justified for the modernization effort. However, the cost must be affordable and should not result in the added process and cost. SCMAP Executive Director Ms. Corazon Curay revealed the group’s sentiment on this advocacy during the EDC Networking Committee on Transport and Logistics meeting last 28 July 2020. KJDA

DOTr issued department order to minimize demurrage charges

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.

It was reported that during the unfolding of the COVID19 pandemic in the country, and the start of community quarantine, the surcharges of international shipping lines heightened, and many stakeholders suffered more from the sky-rocketing shipping costs. This directive will then help in reducing the risks of incurring high demurrage charges that are borne by the importers. –KJDA