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Senator Risa Hontiveros raised the current delays faced by the logistics industry as a national economic concern, seeking solutions to address problems that she noted have happened before
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In a privilege speech on September 29, Hontiveros cited the long-standing issue on the return of empty containers and port congestion, among other issues
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Hontiveros said there is a need for a clear plan, proper coordination, and timelines to address issues of the industry
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There is also a need to include the logistics sector in the country’s industrial policy to help slow down inflation and improve the economy
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Senate president Sherwin Gatchalian said discussions on the matter can start once Hontiveros’ privilege speech has been referred to the appropriate committee
Senator Risa Hontiveros has raised the persistent delays and other issues faced by the logistics industry as a national economic concern, seeking solutions to address problems that she noted have happened before.
In a privilege speech in mostly Filipino delivered on September 29, Hontiveros cited in particular the long-standing issue on the return of empty containers and port congestion, among other related matters.
Hontiveros said while the Philippine Ports Authority (PPA) says the release of cargoes from the ports are continuous, truckers are saying that it takes them one to three weeks to return an empty container to a yard.
She explained that this means the cargo has already been delivered to the owner but truckers cannot take another delivery because they cannot return the empty container on top of their truck to the container yard.
“Sa industriya mismo, tinawag na itong ‘severe truck deadlock’ dahil sa limitadong lagakan ng mga container na walang laman,” Hontiveros said, describing how the industry has tagged the situation.
“It is not enough to say that operations are in order at the port if truckers are waiting for weeks,” she noted.
READ: Manila’s Cargo Crisis — When Sea and Air Feel the Squeeze
She added that there are importers who choose to leave their cargo at the terminals because it’s costlier to have their own warehouse than to pay the penalty of storing their cargoes for longer at the port.
She also noted a call made by a group of truckers and customs brokers during a public consultation conducted on September 23 to support a planned transport strike over worsening port congestion, delays in returning empty containers, and other concerns.
The strike, originally scheduled to start on September 28, was moved to October 5 to give the industry ample lead time to plan around the date, adjust operations, and make decisions on incoming shipments at Manila ports.
What’s at stake?
Hontiveros also cited a report by the Meat Importers and Traders Association, which claimed persistent congestion at Manila ports adds at least P50,000 per container or about P2 to P5 per kilo of costs. The group also said prolonged congestion has prompted some meat importers to reconsider or reduce their purchases.
Hontiveros noted that the logistics industry connects farmers and fisherfolks, markets, factories, and families relying on their products and services.
“Prices of goods are not the only thing at stake here. But also jobs, income, economic growthm” she said.
“Mr. President, this is why I am raising this issue as a matter of national economic concern: we have heard this story before,” Hontiveros said, citing the 2014 Manila truck ban, which led to the congestion at Manila port and affected not just truckers but manufacturers, businesses, and their employees.
The Philippine Institute for Development Studies, in a discussion paper titled “A System-wide Study of the Logistics Industry in the Greater Capital Region” released in 2015, said the Philippine economy lost P43.85 billion from the impact of the seven-month truck ban imposed by the Manila City government in 2014.
Now, more than a decade later, Hontiveros said, it is time to address the root cause of the crisis. “Clearly, this is not simply a logistics problem,” she said, but a wider discussion on the economy and its impact.
Industry-wide, lasting solutions
She added: “We cannot simply allow the logistics sector to be pushed towards a vicious cycle of stagflation in which slow economic growth and rising prices become irreversible conditions of the industry. Broader economic productivity declines when fuel, trucking, port and shipping costs rise while the movements of goods slow down. The impact is felt across all productive sectors – from food, manufacturing, construction, retail to agriculture.”
READ: Manila’s Cargo Crisis: What Needs to Happen
Moreover, Hontiveros said government agencies, shipping lines, truckers, customs brokers, importers, and other members of the logistics industry shouldn’t have to do things independently.
“What is needed is a clear plan, proper coordination, and solutions with clear timelines,” she said.
Senate president Sherwin Gatchalian, during the same session, also noted issues on the country’s trade imbalance with the Philippines being a net importer.
Gatchalian said once Hontiveros’ privilege speech has been referred to the appropriate Senate committee, they can already start discussions.
“Maganda mapag-usapan na ho natin (It would be good to talk about this now),” he added.—Roumina Pablo
READ: BOC targets signing of JAO addressing port congestion within September
