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The Association of International Shipping Lines is engaging industry stakeholders to address high container yard utilization at Manila ports
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AISL attributed the situation to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year”
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These factors include extended yuletide holidays that have led to delays in cargo withdrawals as well as seasonal impact of the Chinese New Year with production in many import sources significantly on slowdown due to the long holiday
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Also cited as challenges were the unprecedented surge in reefer volumes, and constraints at off-dock container depots
The Association of International Shipping Lines (AISL) is actively engaging industry stakeholders to address high container yard utilization.
In a statement, AISL attributed the situation to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year.” These factors include:
- The traditionally extended holiday period in December, exacerbated by additional public holidays, including December 29 and January 2, that caused delays in cargo withdrawals. At present, about 6,500 import containers at the Manila South Harbor already cleared by the Bureau of Customs (BOC) are still inside the terminal, according to BOC data. While South Harbor represents only about a third of Manila’s total container volume, AISL noted, “the condition underscores broader cargo flow challenges across the port system, particularly when viewed alongside the Manila International Container Terminal, which handles roughly 70% of overall container throughput.”
- Seasonal impact of Chinese New Year (February 17 this year). “As is typical, manufacturing and logistics activities in key origin markets slow significantly in the period surrounding the holiday, as production pauses and workers travel to observe the festivities. This dynamic resulted in a pronounced pre-holiday surge in import volumes, followed by uneven cargo flows into the Philippines, adding to the operational strain experienced during the period,” the association explained.
- Unprecedented surge in refrigerated cargo volumes coinciding with irregular and bunched vessel arrivals leading to high reefer yard utilization at both MICT and Manila South Harbor. For the week covering Feb 2 to 6, yard utilization for reefers at MICT was more than 100% except for February 6 (95.87%); overall yard use was in the mid- to high 80s. For the same period, reefer yard utilization at the South Harbor was more manageable in the 50s, and overall yard utilization in the 70s. AISL explained: “The clustering of vessel calls required terminals to carefully sequence discharge operations and undertake additional yard housekeeping to ensure the orderly accommodation of reefers requiring immediate handling. In certain cases, vessels carried out restows while alongside to allow the discharge of dry containers ahead of refrigerated units that could be temporarily retained onboard without compromising cargo integrity. This operational sequencing supported yard stability and safe terminal operations but contributed to longer vessel port stays.”
- Constraints at off-dock container depots. “The return and evacuation of empty containers faced limitations, as depots are less able to create additional space when the movement of empties back to terminals is moderated. This reflects the terminals’ calibrated acceptance of empty containers as part of ongoing efforts to maintain port efficiency by carefully managing high yard utilization in a safe and orderly manner. As a result, empty containers tend to remain in circulation for longer periods, with corresponding effects on depot capacity and truck turnaround.”
- External operational conditions in January that intensified the local challenges. “Congestion and vessel bunching in other parts of Southeast Asia as well as in major China ports contributed to irregular vessel arrivals and schedule disruptions. Bunching—where vessels arrive in clusters following delays elsewhere—placed additional pressure on local terminal operations and yard planning during an already constrained period.”
- Restricted cargo movement. “Traffic disruptions associated with major January activities, including the annual Traslación, limited road accessibility in key areas of Manila and added pressure to container movements.”
In response to high yard utilization, AISL noted “terminal operators implemented operational measures aimed at balancing yard capacity while sustaining service continuity. These included calibrated controls on container inflows to manage utilization levels and ensure uninterrupted port operations.”
The association underscored the “interconnected nature of these challenges” thus, the engagement with “stakeholders across the supply chain to better understand operational realities and identify areas for cooperation.”
AISL participated in a focused coordination meeting with the BOC on February 3, followed by a separate consultation with the Alliance of Concerned Truck Owners and Organizations (ACTOO) on February 4.
On February 3, AISL took part in a focused coordination meeting with the Bureau of Customs, led by Atty. Agaton Teodoro O. Uvero, Deputy Commissioner for the Assessment and Operations Coordinating Group. He was joined by Director Melon Carlo M. Santiago, Director of the Operations Service; Atty. Julito L. Doria, Chief of the Port Operations Coordination Division; Atty. Edward R. Ibera, Deputy Collector for Assessment; and Atty. Rod Pino, Chief of Staff.
The meeting brought together representatives from AISL and the Association of Container Yard Operators of the Philippines (ACYOP), including representatives Nestor Materiales and John Pua; Patrick Ronas, President of AISL; Atty. Maximino Cruz, Executive Director of AISL; and Joseph Collantes IV, Operations and Logistics Manager of RCL Phils., Inc. and a member of the AISL Port Operations Committee.
The discussion focused specifically on operational issues surrounding the return and handling of empty containers.
AISL said the February 3 engagement — distinct from the broader multi-stakeholder meeting held on January 28 — served as a more substantive and collaborative working session among the association, BOC, and ACYOP to align operational perspectives and explore practical measures to facilitate smoother empty container returns and improve overall container circulation.
At the February 4 discussions, AISL noted that Rina Papa, representing ACTOO, “endorsed the adoption of a digitalized procedure for container returns, emphasizing that a technology-driven system would help minimize human intervention and improve efficiency.” Papa said “such a platform should allow truckers and depots to see a predictable date when returned empty containers can be accepted, providing clarity on scheduling, improving turnaround planning, and supporting smoother container circulation across the logistics chain.”
READ: PCCBI recommends cut in empties dwell time to ease yard congestion
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