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Government is pushing members of the Association of International Shipping Lines to subscribe to Container Ledger Account to address the lingering issue on container deposits
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Transportation Secretary Jaime Bautista and Trade and Industry Secretary Alfredo Pascual called on shipping lines to consider CLA
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They said CLA “appears to be an effective solution that simplifies the container deposits management process” for shipping lines, consignees and brokers
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Separately, DTI Assistant Secretary Mary Jean Pacheco again “strongly urged” AISL members to subscribe to CLA
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16 shipping lines/non-vessel operating common carriers have subscribed to CLA as of February 2023
The Department of Transportation (DOTr) and Department of Trade and Industry (DTI) are urging members of the Association of International Shipping Lines (AISL) to subscribe to the Container Ledger Account (CLA) to address the longstanding issue on container deposits.
Transportation Secretary Jaime Bautista and Trade and Industry Secretary Alfredo Pascual, in separate letters to AISL members dated January 13 but received on February 8, called on shipping lines to consider CLA as it “appears to be an effective solution to simplify the container deposits management process between CLA subscribers (shipping lines, consignees, and brokers).”
The secretaries also urged the shipping lines to support the government’s goal of reducing logistics costs in the country.
In a separate letter to AISL dated February 7, DTI Assistant Secretary Mary Jean Pacheco again “strongly urged” AISL members to subscribe to CLA.
Previously, former Trade Secretary Ramon Lopez endorsed CLA in June 2022, saying DTI “believes that the CLA is a viable option in addressing the issue of container deposits.”
DTI endorses use of CLA to address container deposit problem
DOTr and DTI said in their January letter that for several years now, the issue on the delays in the refund of container deposits by international shipping lines had been raised with their departments.
“Most international shipping lines that require container deposits to cover for loss, damage, demurrage, or detention charges are unable to return the deposits timely due to long and tedious administrative processes. As a result, many shippers have complained about refunds that reach an estimated average of three (3) months or longer, and unreturned deposits in millions of pesos,” the letter said.
Pacheco, in her letter, noted that the government recognizes the purpose of requiring a container deposit but said “the turnover of the release of container deposits to consignees and customs brokers is an issue of its own, as it prevents the competitiveness of these industries and their clients.”
Pacheco said that in a recent discussion between DTI and DOTr, both agencies agreed to jointly endorse CLA given that it “appears to be an effective solution in simplifying the container deposit management and return between CLA subscribers.”
She added that CLA has also gained support and endorsement from industry groups such as AISL, the Association of Off-Dock CFS Operators of the Philippines, Philippine Liner Shipping Association, Philippine Multimodal Transport and Logistics Association Inc.; Port Users Confederation of the Philippines, and Supply Chain Management Associations of the Philippines.
“We maintain the belief that CLA is a viable option in addressing the issue of container deposits. There have been positive benefits to stakeholders as it has proven to reduce procedures, time, and cost as well as improve the competitiveness of SMEs (small and medium enterprises),” Pacheco said.
AISL general manager Maximino Cruz told PortCalls in a text message that the group will follow up with member lines the action taken by their higher management in response to the “letter endorsement.” The letters to individual shipping line members were forwarded on February 9.
According to Pacheco, only 16 shipping lines/non-vessel operating common carriers (NVOCC) are subscribed to CLA as of February 2023. AISL has more than 30 members.
CLA is an alternative and voluntary solution to simplify container deposit management between a shipping line and a consignee/agent. The system began pilot-testing in the Philippines in December 2021.
AISL tapped Malaysia-based D&D Control (M) Sdn Bhd to offer the service.
D&D has set up Container Ledger Account Phils. Inc. (CLAP) and now has a physical office in Manila.
Aside from shipping lines, there are 177 consignees/freight forwarders, and 204 customs brokers/ container freight station and warehouse operators that are subscribed to the system as of February 2023.
CLA earlier told PortCalls it has further reduced its refund time to an average of 0.8 day in November 2022 from 1.4 days in October 2022.
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 various 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. – Roumina Pablo
