NAIA air cargo crunch hits semiconductor industry
The congestion stems from a capacity crunch triggered by the closure of a major Ninoy Aquino International Airport cargo warehouse. Photo taken by Erich Lingad, immediate past president of the Philippine Multimodal Transport and Logistics Association, on June 24.
  • Air cargo congestion at Ninoy Aquino International Airport is disrupting semiconductor shipments — including wafers and storage devices
  • Clearance rates are dropping from 95% to 76% in under three days, undermining manufacturers’ tight turnaround commitments
  • At least one global technology company has suspended production of a product line due to the delays, with industry leaders warning others could follow if the situation is not resolved urgently.
  • Bureau of Customs-NAIA has extended operating hours to 7 am–9 pm daily including weekends and deployed additional personnel
  • An agreement was reached on June 25 to convert an area of Duty Free — already serving as a staging area — into a satellite facility staffed with dedicated BOC personnel to process and release shipments on-site
  • The congestion stems from a capacity crunch triggered by the closure of a major NAIA cargo warehouse

Air cargo warehouse congestion at Ninoy Aquino International Airport is taking a toll on the Philippines’ semiconductor industry, with one global technology company already suspending production of one of its product lines — and fears growing that others could follow.

Philippine Chamber of Commerce and Industry (PCCI) president Ferdinand Ferrer said the capacity crunch is disrupting shipments of wafers, storage devices, and other semiconductor components, all of which move exclusively by air. Ferrer, who is also chairman and chief executive of electronics manufacturer EMS Group of Companies, said clearance performance has deteriorated sharply: last year, 95% of air shipments passing through NAIA warehouses were cleared in under three days, but that figure has since fallen to 76%, undermining manufacturers’ ability to meet tight turnaround commitments.

“The situation is alarming and needs high-level government intervention, not only from BOC (Bureau of Customs),” said Erich Lingad, immediate past president of the Philippine Multimodal Transport and Logistics Association, Inc. (PMTLAI) and president of Move It Multimodal Transport & Logistics, warning that more manufacturers could be forced to halt operations if shipments continue to be delayed.

The stakes could not be higher. Electronics are the Philippines’ largest import and export commodity, and semiconductor components are the lifeblood of that industry. A prolonged disruption at NAIA threatens not just individual production lines but the broader supply chains and export earnings that the country’s manufacturing sector depends on.

The congestion traces back to a capacity crunch at the People’s Air Cargo & Warehousing Co., Inc. (Paircargo) facility, the airport’s dominant cargo handler with roughly 70% of NAIA’s air cargo volume owing to its direct ramp access. The situation was compounded by the closure of Philippine Skylanders International, Inc.’s (PSI) facility after NAIA operator New NAIA Infrastructure Corp. (NNIC) reclaimed its premises for redevelopment. With PSI and the previously shuttered Miascor now both out of operations, Paircargo and Cargohaus are the only customs bonded warehouses serving multiple carriers at NAIA, stretching capacity thin. The remaining bonded warehouses — operated by Philippine Airlines, DHL, UPS, and Royal Cargo — handle only their own cargo.

PMTLAI flagged the delays in a June 3 letter to Paircargo, citing the volume surge following PSI’s closure as a key factor.

The Bureau of Customs–NAIA (BOC-NAIA) has since rolled out several relief measures. Operating hours have been extended from the previous 8 am–5 pm, Monday to Friday, to 7 am–9 pm daily including weekends. The bureau is encouraging stakeholders to schedule releases between 7 am and 1 pm to avoid the typically congested afternoon window. BOC-NAIA has also set up a Viber group for stakeholders to follow up on unlocated entries and is in close coordination with Paircargo on the ground.

READ: BOC-NAIA extends work hours to address shipment delays at Paircargo

BOC assistant secretary Vincent Philip Maronilla, speaking at the 2nd Annual UPC Stakeholders’ Summit, announced that an agreement was reached on June 25 to convert an area of Duty Free — already serving as a staging area — into a satellite facility staffed with dedicated BOC personnel to process and release shipments on-site. The move is expected to help ease congestion at the Paircargo facility.

PortCalls has reached out to NNIC for comment but had not received a response as of press time. — Roumina Pablo

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