Before stepping down as secretary of the Department of Trade and Industry, Fred Pascual released a statement reiterating the agency’s support for the passing of the International Maritime Trade Competitiveness Act, citing how it would help address the issue of unreasonable shipping charges that continue to affect importers and exporters.
We at SCMAP have also long called for the passing of the measure, and as a new legislative session goes underway, we echo the call of various stakeholders for the passing of this bill. It would provide necessary safeguards that would ensure reasonable and competitive logistics costs, allowing businesses across the supply chain to be more competitive.
These safeguards include a requirement for port operators, carriers and forwarders to publish regular shipping charges and fees in a newspaper of general circulation, as well as to report these rates to the Maritime Industry Authority (MARINA). The agency would also be mandated to regulate the application of local charges. The culminating results should be more predictable charges, and more optimal logistics costs, where the competitive advantage of stakeholders move from price to service levels and added-value services.
While most of the recent State of the Nation Address focused on bolstering domestic production to reduce reliance on imports, it still is a fact that manufacturers in the country rely on raw materials from outside the country. These are subject to these shipping charges that the International Maritime Trade Competitiveness Act aims to oversee. While efforts are underway to improve our domestic sourcing and production capacities, the passing of this law would help businesses be more competitive and go some way to lowering prices for Filipinos.
We are also keen to see the progress of another proposed law, which would split the regulatory and commercial functions of the Philippine Ports Authority. One agency handling both duties continues to pose a conflict of interest that contributes to high logistics costs. The split should lead to greater transparency and oversight, and allow the concerned agencies to focus on their mandates without being blinded by financial considerations. In the proposed law, the new Philippine Ports Corporation would focus solely on modernizing our ports, ensuring port operators truly add value to the facilities they take over, while bringing far-flung ports to the 21st century. Meanwhile, rate-setting responsibilities will fall to MARINA.
In our struggle to modernize our supply chains and make them more competitive, we should continue to push for change on multiple fronts. The passing of critical legislation would provide legal support to regulatory and policy reforms, making them more sustainable and not subject to the whims of whoever is in power. This goes hand-in-hand with initiatives that boost our supply chain capacity and capability, such as the continued push for transport infrastructure, and efforts to boost education, like the introduction of an e-commerce track for senior high school students – incidentally also one of the last duties performed by former DTI secretary Pascual.
Meanwhile, for us in the private sector, it is up to us to find more ways to improve our operations and deliver more for our customers, partners and employees, whether it be through pursuing innovative processes and strategies with the aid of new technologies, or upskilling our workforce to ensure their preparedness for whatever could come, or by further embracing supply chain sustainability. Making our supply chains more competitive – and, as a result, making our businesses more competitive and making the lives of every Filipino better – is a long-term group effort.
2024 SCMAP Supply Chain Conference: Registration is now open for the most prestigious event in Philippine supply chain, happening on September 12-13 at the EDSA Shangri-la Manila. Tap into unparalleled opportunities to learn, benchmark and network with thought-provoking talks from respected industry figures, exclusive site tours and the biggest exhibition in the country featuring world-class supply chain solutions and services. Book your slot now by visiting scmap.org/events/conference/register.
Supply Chain Philippines Excellence Awards: You can now submit your entries to our first ever awards honoring the most impactful work across Philippine supply chain, with a focus on emerging technologies and sustainability. Deadline for submission is on August 24. Learn more and submit your projects at scmap.org/events/conference/awards, or email awards@scmap.org to learn more.
Henrik Batallones is the marketing and communications director of SCMAP, and editor-in-chief of its official publication, Supply Chain Philippines. More information about SCMAP is available at scmap.org.
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