PPA approves higher storage fees for foreign containerized cargoes

• The Philippine Ports Authority approved a 32% increase in storage charges for foreign containerized cargoes stored beyond the free period

• In addition, a surcharge to the storage fee of reefer containers was green lit

• Both charges will take effect on January 6, 2024

• The new rates under Memorandum Circular 021-2023 were approved by the PPA Board of Directors through Board Resolution 3261

The Philippine Ports Authority (PPA) approved a 32% increase in storage charges for foreign container shipments after the free storage period (FSP). In addition, a surcharge for the storage of reefer containers was green lit.

Charges take effect on January 6, 2024 and will apply to all PPA ports handling foreign containerized cargoes.

The new rates are contained in PPA Memorandum Circular (MC) No. 021-2023 dated December 6. The circular amends MC 10-2013, which originally addressed an increase in storage charges for foreign containerized cargoes.

The PPA Board of Directors approved the new rates through Board Resolution No. 3261.

Under the new rates, the storage charges for import 20-footers beyond the FSP of five days will be as follows:

• P635.32 per day for the sixth to 10^th day
• P698.85 per day for the 11^th to 15^th day
• P762.38 per day from the 16^th to 20^th day
• P825.91 per day from the 21^st to 25^th day
• P889.44 per day from the 26^th to 30^th day
• P952.97 per day for the 31^st day and beyond

For export 20-footers, after the FSP of four days, the rates are:

• P79.40 per day from the fifth to sixth day
• P158.80 per day from the seventh to 11^th day
• P174.68 per day from the 12^th to 16^th day
• P190.56 per day from the 17^th to 21^st day
• P206.43 per day from the 22^nd to 26^th day
• P222.31 per day from the 27^th to 31^st day
• P238.19 per day from the 32^nd day and beyond

For transshipment, after the 15-day FSP, the rates for a 20-footer are:

• $14.44 per day from the 16th to 20th day
• $15.88 per day from the 21st to 25th day
• $17.33 per day from the 26th to 30th day
• $18.77 per day from the 31st to 35th day
• $20.22 from the 36th to 40th day
• $21.66 per day from the 41st day and beyond

Reefer container storage rates for imported 20-footers after the FSP of five days are:

• P1,588.3 per day from the 6th to 10th day
• P1,747.13 per day from the 11th to 15th day
• P1,905.95 per day from the 16th to 20th day
• P2,064.78 per day from the 21st to 25th day
• P2,223.60 per day from the 26th to 30th day
• P2,382.43 per day from the 31st day and beyond

For an export 20-footer reefer, the storage rates after the FSP of four days are:

• P198.50 per day for the 5^th to 6^th day
• P397 per day for the 7^th to 11^th day
• P436.70 per day for the 12^th to 16^th day
• P476.40 per day for 17^th to 21^st day
• P516.08 per day for the 22^nd to 26^th day
• P555.78 per day for the 27^th to 31^st day
• P595.48 per day for the 32^nd day and beyond

For transshipment reefer containers, the storage rate after the FSP of 15 days for a 20-footer are:

• $36.10 per day for the 16th to 20th day
• $39.70 per day for the 21st to 25th day
• $43.33 per day for the 26th to 30th day
• $46.93 per day for the 31st to 35th day
• $50.55 per day for the 36th to 40th day
• $54.15 per day for the 41st day and beyond

MC 021-2023 also includes new rates for 35-footers, 40-footers, and 45-foot containers.

In an October 18 public consultation, the PPA Commercial Services Department noted that storage fees for foreign containers have stayed the same since 2014, even though there was an increase in 2014. Some foreign containers still stay in PPA ports beyond the FSP.

PPA says raising storage rates is a smart way to use the yard better and ensure quick removal of import containers, avoiding congestion.

A surcharge on reefer storage is meant to encourage importers to quickly clear their containers, freeing up crucial storage space in ports and discouraging long-term storage use.

PPA’s Jay Daniel Santiago suspended refrigerated container acceptance in December 2022 to January 2023 due to 100% congestion. With containers staying for six to seven months, the agency converted regular warehouses into reefer spaces, arguing that current port storage costs are more economical than private warehouses, causing artificial congestion.

The Philippine Exporters Confederation, Inc. and foreign chambers of commerce, including the American Chamber of Commerce of the Philippines, German-Philippine Chamber of Commerce and Industry, and British Chamber of Commerce Philippines, called for an analysis of the proposed rate increase to prevent undue harm.

The Supply Chain Management Association of the Philippines disapproved of the proposed rate increase, considering it was poorly timed amid recent increases in transport fare, minimum wage, and basic commodity prices.

In the October public consultation, PPA clarified that the storage charge increase is not meant to generate revenue for the agency. It stressed that cargo owners can avoid these fees by promptly removing their containers within the FSP.

From 2014 to 2022, PPA ports handled a total of 13.98 million foreign containers, of which 48% stayed within the FSP and 52% stayed beyond the FSP. Of the 7.31 million containers that overstayed, 50.27% were imports, 49.71% were exports, and the rest were transshipments.

Within the overstayed containers, 92.07% were dry containers, and 7.93% were reefers. PPA specified that 66% of the containers staying beyond the FSP were at Manila International Container Terminal, 30% at Manila South Harbor, and the remaining 4% at other PPA international ports. – Roumina Pablo