The Philippine Ports Authority (PPA) has granted an 8% increase in cargo handling tariff at the Manila North Harbor, the country’s main domestic port, effective January 19.
PPA general manager Atty. Juan C. Sta. Ana signed on December 15 PPA Memorandum Circular No. 16-2014, which grants the Manila North Harbour Port, Inc. (MNHPI) a tariff adjustment of not more than 8%, in addition to the 10% provisional increase in cargo handling tariff that PPA approved in 2013.
In June 2013, PPA approved a 10% provisional increase in arrastre, stevedoring, and other cargo handling service fees for both international and domestic cargoes to those that applied for a hike. MNHPI initially asked for a 25.57% increase in cargo handling tariff.
PPA noted that the increase is pursuant to PPA Board of Directors Ex-Com Resolution No. 2014-1412 and Board Resolution No. 2408 dated December 5, 2014 as well as the revised recommendation of the Board Technical Working Group.
The PPA Commercial Services Department will make the necessary adjustment to the cargo handling tariff schedule of Manila North Harbor. But as of press time, PPA is still working on the new matrix.
Petrona Gatdula, executive director of the Philippine Liner Shipping Association, noted it will be difficult for domestic carriers to comply with the required 30-day notice to shippers for any rate increase considering the lack of matrix from PPA.
She told PortCalls this situation will translate to liners subsidizing the 8% hike until such time that the matrix is released.
In 2013, PPA was also unable to immediately provide the matrix for the 10% provisional increase in cargo handling tariff. MNHPI deferred implementation of the increase for several days so that liners would not have to shoulder the hike.
Norman Adriano, secretary general of the Supply Chain Management of the Philippines, said this increase would eventually be passed on to consumers. – Roumina Pablo
