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The Philippine Ports Authority is looking at imposing additional penalties or doubling port storage fees for rice shipments to compel timely cargo withdrawal
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More than 800 containers containing imported rice are overstaying at the Port of Manila, according to PPA general manager Jay Santiago
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About 500 containers at the Manila International Container Terminal and 21 containers at Manila South Harbor have been customs-cleared but remain unclaimed as of September 18
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237 containers are awaiting final clearance
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Starting October 1, PPA will publish a monthly list of overstaying containers and their consignees
The Philippine Ports Authority is looking at imposing additional penalties or doubling port storage fees for rice shipments to compel timely cargo withdraw, according to general manager Jay Santiago.
More than 800 containers containing 24 million kilos of imported rice are overstaying at the Port of Manila, Santiago said in a briefing on Sept 19 at the Manila International Container Terminal (MICT).
More than 500 containers at the MICT and 21 containers at Manila South Harbor have been customs-cleared but remain unclaimed as of September 18.
In addition, 237 containers are awaiting final clearance.
“In the next few years, we are studying how to handle the increasing shipments of prime commodities, especially critical items such as rice, sugar, and vegetables. We are considering imposing penalties specifically for delays or issues related to rice shipments,” Santiago said in a mix of Filipino and English.
Starting October 1, PPA will also publish a monthly list of overstaying containers and consignees with rice imports. This initiative aims to enhance transparency in port operations, encouraging importers to withdraw their shipments promptly, Santiago said.
The list will assist other regulatory agencies monitor compliance with rice importation permits, making sure importers adhere to rules governing rice imports, he said.
“We just want to ensure full transparency and inform the public that, from the perspective of the PPA, we are doing our best to maintain efficient port operations. This effort is aimed at minimizing logistics costs, not only for rice but also for other imports,” said Santiago, adding “it is unfair to attribute the rising price of rice to port congestion, with claims that the PPA’s management is contributing to price hikes. This is far from the truth.”
The media briefing followed a Department of Agriculture (DA) appeal for PPA to fast-track the release of the more than 800 containerized rice shipments.
In a Sept 18 statement, Agriculture Secretary Francisco Tiu Laurel Jr. said: “We respectfully urge the PPA to prioritize the movement of these rice stocks to help increase supply for this essential food staple and potentially lower retail prices.”
No port congestion
But in an earlier press release, Santiago reiterated yard utilization at the Port of Manila is “optimum” at 70% despite the overstaying containers, suggesting that current port operations are running efficiently.
The agency is, however, anticipating higher volumes soon, with the utilization rate only expected to rise to 91-92% by mid-December.
Santiago said it is “alarming” that some containerized rice imports stay in ports for more than 20 days despite having been cleared for release by the Bureau of Customs.
The situation, PPA said, has contributed to “perceived delays in shipments and possible artificial increases in rice prices.”
The free storage period is only five days.
“This is an issue that should also be monitored by other agencies, particularly the Department of Agriculture. We’re just a little alarmed – because the whole PPA organization is working hard for us to fix the management of our ports,” he said.
“We do not want our countrymen to have the wrong impression that the PPA is one of the contributors to why the price of rice is rising,” he added. – Michael Barcas
