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Container Ledger Account further reduced the time it takes to refund container deposits to an average of 0.8 day in November from 1.4 days in October
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As of December 9, the online system that aims to simplify and speed up container deposit refund, had released 1,697 containers and catered to 350 subscribers
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14 shipping lines are also subscribed to the system, while two lines are transacting on a trial basis with selective customers
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A few shipping lines are awaiting approval from their principals to join the system and are hoped to join before the yearend or by the first quarter of 2023
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For 2023, Container Ledger Account Phils. Inc. aims to subscribe 10 more shipping lines by the third quarter
Container Ledger Account (CLA), an online system that aims to simplify and speed up container deposit refund, has further reduced its refund time to an average of 0.8 day in November from 1.4 days in October.
As of December 9, the system had released 1,697 containers, Container Ledger Account Phils. Inc. (CLAP) told PortCalls in an email.
CLA has a total of 350 subscribers, which includes 66 consignees, 87 freight forwarders, 169 customs brokers, and 14 container freight stations/warehouse operators.
Fourteen shipping lines are also subscribed to the system, while two lines are transacting on a trial basis with selective customers.
These include the following:
- BLPL Singapore
- CK Line
- Concorde Container
- Eagle Express Lines Inc. (RCL South Phils.)
- Federated Cargo Line
- Lancer Container
- Macro Ocean Philippines, Inc.
- MBF Carpenters
- New Zealand Line
- Oceanus Container
- OOCL Philippines Inc.
- Samudera Shipping
- Sarjak Container Lines
- Southern Star Agencia Maritima, Inc. (Namsung Shipping)
- KMTC (Phils.) Corp.
- RCL Feeders Phils. Inc.
CLAP said there are also a few shipping lines that are awaiting approval from their principals to join the system. The company hopes to secure their agreement before the yearend or by the first quarter of 2021.
For next year, CLAP said it is “very positive with CLAP’s role in 2023.”
“With the strong testimonial from the subscribers and full support from the various reputable associations together with further endorsement by DTI [Department of Trade and Industry] and DOTr [Department of Transportation], we target at least another 10 shipping lines/NVOCCs [non-vessel operating common carriers] to sign up by the 3rd quarter of 2023,” CLAP added.
CLA is an alternative and voluntary solution to simplify container deposit management between the shipping line and the consignee/agent. The system began pilot-testing in the Philippines in December 2021.
DTI endorsed the system in June and strongly urged members of the Association of International Shipping Lines (AISL) to join CLA as an alternative to address the longstanding issue on container deposits. AISL has 36 global container liners calling Philippine ports.
AISL earlier tapped Malaysia-based D&D Control (M) Sdn Bhd to offer an alternative solution to the long-standing issue of the return of container deposits in the Philippines.
CLA has been implemented since 2018 in Malaysia, which also used to have problems with the return of container deposits. Several shipping lines and shipping agents using CLA in Malaysia are also operating in the Philippines.
In the Philippines, D&D has set up CLAP and now has a physical office in Manila. CLA is a patented product in Malaysia. Just last year, D&D also applied for a patent in the Philippines and Indonesia.
CLA can either help manage container deposit online or replace the deposit with a one-time security payment.
The system aims to reduce procedures, time, and costs; improve competitiveness, and level the playing field among big, small and medium organizations. It also aims to eliminate the administrative burden of shippers who have to prepare various documents to claim their container deposits from shipping lines.
Through CLA, users can provide the container deposit or a security amount for use with all their containers regardless of the shipping line.
The return of container deposits is one of the long-standing issues in the industry and has been the subject of various meetings and discussions. The government earlier tried to address the issue through a joint administrative order on local charges imposed by international shipping lines, but the order did not materialize.
In January, the House of Representatives approved on third and final reading House Bill No. 10575, which seeks to strengthen government agencies’ oversight functions over the shipping charges imposed by international shipping lines operating in the Philippines.
The bill was not passed into law before the change in Congress last July. A similar bill has been filed in the current Congress. – Roumina Pablo
