Cargo owners remove overstaying shipments to decongest Manila ports

MANILA: The Manila South Harbor and Manila International Container Terminal (MICT) are undergoing a process of decongestion since consignees and shippers have begun the withdrawal of overstaying cargoes.

Department of Transportation (DOTr) Secretary Arthur Tugade said that what has been accomplished so far is more significant than what the DOTr and the Philippine Ports Authority (PPA) anticipated after appeals to consignees and shippers to remove their overstaying shipments.

According to Sec. Tugade, a healthy and safe port is essential during this time. For the DOTr, a safe port means that there is stability in terms of the prices of goods, promptness in the delivery of cargo, and absence of congestion. A decongested port guarantees the effective use of the container yard and the constant flow of maritime commerce.

Moreover, a decongested port is vital because organizations and agencies are seeking ways of providing the necessary services and goods to frontliners and citizens who are attempting to combat the COVID-19 pandemic.

Earlier last week, Sec. Tugade appealed to consignees and cargo owners to withdraw their overstaying cargoes inside the MICT. He aired the request after PPA general manager Jay Daniel Santiago announced the probable shutdown of the Port of Manila if consignees and cargo owners will not remove their overstaying or ready for delivery cargoes.

Santiago stated that amid past efforts to transfer overstaying and excess containers from the MICT to a facility within the Manila North Harbor, the Manila ports still lack adequate breathing space to work productively and efficiently.

According to the PPA, the yard utilization of the Manila international ports consists of the Manila South Harbor and the MICT. The yard utilization has reached 100% as most of the cargoes are currently idle after the implementation of the Luzon-wide enhanced community quarantine (ECQ) to control the spread of the COVID-19 pandemic.

Sec. Tugade pointed out the significance of the MICT yard decongestion. Overstaying, ready for delivery, and cleared shipments should be removed since this will pave the way for incoming cargoes such as medical supplies, protective equipment, and food items that the government needs to combat COVID-19 in the country.

Currently, port utilization after the withdrawal of overstaying shipments has reached an estimate of 75%, and this shows an evident improvement from the earlier appeal to consignees and cargo owners to remove or release their overstaying shipments. The initial target for decongestion was 60% to attain ideal operations.

Earlier last week, the PPA coordinated with the Department of Agriculture (DA), Department of Trade and Industry (DTI), and the Bureau of Customs (BOC), among others, to look for significant initiatives to prevent port congestion after receiving instructions from the Inter-Agency Task Force for Emerging Infectious Disease Management (IATF) to clear ports with excess cargoes.

Among the strategies that have been discussed to aid in freeing up space on the container yard is the revocation of government-owned overstaying shipments and reduction in the clearing and free storage period from the current allowed time. Another is the implementation of fines, sanctions, and storage charges on cargo owners to compel them in removing their overstaying shipments.

According to the proposed Joint Memorandum Circular (JMC), all shipments that have been released from the vessels and stay at the port for more than 30 days should be removed within five days from the time that the JMC will take into effect. Otherwise, these shipments will be considered abandoned and, therefore, may be revoked in favor of the government.

The PPA has designated a specific area at the Manila North Harbor, the country's flagship domestic terminal, for the rapid and streamlined transfer of all overstaying foreign containers that have been approved for delivery or removal. The goal of this measure is to sustain the high operating productivity of the MICT during the ECQ.

GM Santiago also ensured that the terminal operators ATI and ICTSI, the PPA, and the Bureau of Customs are working closely to aid the consignees in swiftly facilitating the removal of their overstaying cargoes and other transactions.

Photos from the DOTr official website and Facebook page