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Manila International Container Terminal asked shipping lines, customers, and consignees to expedite withdrawal of laden containers
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The terminal continues to experience higher than normal yard utilization and inventory due to longer container dwell times
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Currently, approximately 41% of yard inventory remains beyond free time, placing sustained pressure on terminal operations and resulting in extended vessel waiting times and sporadic empty acceptance across the system
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Association of International Shipping Lines president Patrick Ronas said shipping lines continue to remind clients on container withdrawal
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Ronas said there should be concerted effort between the private sector and government to clear the MICT of overstaying laden containers
Manila International Container Terminal (MICT) asked shipping lines, customers, and consignees to expedite withdrawal of laden containers as the terminal continues to experience higher than normal yard utilization and inventory due to longer container dwell times.
“While the terminal has been ramping up operations and maximizing available resources in preparation for increasing activity levels, yard utilization and overall inventory continue to rise due to longer container dwell times.
“Currently, approximately 41% of yard inventory remains beyond free time, placing sustained pressure on terminal operations and resulting in extended vessel waiting times and sporadic empty acceptance across the system,” MICT said in an advisory to shipping line partners dated May 19.
For its part, MICT said it continues to intensify efforts to minimize the impact on vessels currently queuing at the harbor pilot station.
“As previously communicated directly to your teams and through our earlier advisory, we continue to seek your support in accelerating cargo withdrawals and maintaining steady pull-out activity, particularly for aging inventory. We have also been coordinating directly with your customers and consignees to help facilitate and prioritize pull-outs,” MICT stated.
It added that sustaining operational stability will depend heavily on timely evacuations and continued coordination among all stakeholders.
READ: MICT continuous investments at pace with growing volumes
Association of International Shipping Lines, Inc. (AISL) president Patrick Ronas, in a statement to PortCalls, said shipping lines continue to remind clients on container withdrawal.
He noted some of the overstaying containers at MICT are abandoned and “from what we hear, some have been cleared by the BOC [Bureau of Customs] but have yet to be picked up by the consignees.”
“The MICT can handle millions of TEUs [twenty-foot equivalent units] in a year but if their space gets idle then it will affect their productivity. There should be concerted effort amongst all, private and government, to clear the MICT of these overstaying laden,” Ronas said.
He added customs brokers should “remind their clients to make themselves ready to accept the cargo as quick as possible” while BOC should also check on their processes and try to find out how they can speed things up.
He noted, for example, that designated examination areas open at 8am but most processors arrive at 10am.
Ronas explained that empty containers are often blamed for the high yard utilization but are in fact not the driver for such.
“MICT has been transparent in saying that empty acceptance has been sporadic. If empties from the off-dock depots are not able to enter the terminal for ship out on the vessels then it stays in the off-dock depot. Until such time that we are able to move them out,” he said.
“I will repeat, shipping lines do not need the empties to stay longer than expected as the containers are needed by other countries for their export needs. We continue to be import dominant and it is foreseen that it will remain the same in the long term,” Ronas stressed.
90-day dwell time
Claims that empty containers are the reason for high utilization at terminals — thus the need for a policy to cut stay of containers in the Philippines — “will kill our exports,” Ronas pointed out.
Various stakeholders’ groups have recommended the reduction of the 90-day container dwell time to force faster withdrawal by shipping lines in order to free up space in empty depots. Issues on the return of empty containers to yards are a longstanding industry concern.
According to BOC rules, foreign containers (whether loaded or empty) need to be re-exported within 90 days from the discharge of the last package or they will be subjected to payment of duties and taxes. Beyond 90 days, these will be considered overstaying and issued an assessment notice.
AISL earlier said carriers have been complying with this policy.
READ: Remove overstaying containers, BOC orders shipping lines
“Decades ago our trading pattern was different. Shipping lines had to position empty containers into the Philippines for export use. To do that now will be costly and kill our export market. Other markets in Asia does not have such limitation on containers. This will also mean that import freight will be charged with the taxes and duties of the containers if in case the consignee does not return the units in time. What we need is support and not over regulation,” Ronas explained.
BOC last March said it is looking to develop a comprehensive strategy to address port congestion, incorporating both operational and policy interventions.
BOC had initiated consultations with stakeholders after port users in February sounded the alarm over high yard utilization rates–especially for reefer cargoes–at MICT and Manila South Harbor, as well as in empty container depots.
AISL earlier attributed the high yard utilization to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year”.
BOC is reviewing container monitoring systems such as the Automated Container Movement Monitoring System, Customs Container Management System, and In-Transit Asset Management and Supervision System, and will pursue the accreditation of off-dock container depots.
READ: AISL against proposed BOC empty container monitoring system
BOC is also expected to draft a comprehensive order establishing trigger points and threshold levels to proactively manage and mitigate port congestion, particularly during peak periods from November to February.— Roumina Pablo
