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The Philippine Ports Authority is revising its policy on free storage period for loaded and empty foreign and domestic containers
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PPA Administrative Order No. 005-2025 will effectively require payment of storage charges sooner due to the earlier assessment of FSP
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Current storage charges remain the same
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PPA said the revision ensures “ports are utilized on the most efficient and shortest way possible”
The Philippine Ports Authority (PPA) is revising its policy on free storage period (FSP) for containers, effectively requiring payment of storage charges sooner due to the earlier assessment of FSP.
Effective August 21, PPA Administrative Order (AO) No. 005-2025 does not change the current storage charges.
The order will revise PPA rules on the commencement of FSP and assessment of storage charges for containerized cargoes and empty boxes, both foreign and domestic, handled in all PPA government ports.
It aims to “optimize the utilization of port areas, ensuring their efficient use to accommodate increased cargo volumes and streamline operations,” the PPA order said.
During a public consultation last March, then PPA Commercial Services Division manager Leila Martinez said the proposal will ensure “ports are utilized in the most efficient and shortest way possible” in keeping with the advancement of technology in tracking the actual time of discharging cargo.
Martinez said the then proposed rules will effectively require cargo owners to pay storage charges sooner “because of the earlier assessment of the free storage period.” Instead of calendar days, the FSP will be counted by the day and time.
Under AO 005-2025, the FSP will be as follows:
- Import – 5 days equivalent to 120 hours
- Export – 4 days equivalent to 96 hours
- Foreign transshipment – 15 days equivalent to 360 hours
- Inbound domestic – 2 days equivalent to 48 hours
- Outbound domestic – 2 days equivalent to 48 hours
- Shut-out (not loaded on their scheduled vessel) domestic – 2 days equivalent to 48 hours
The commencement of the FSP and the assessment of storage charges are the following:
- Import – starting on the actual day and time the import container is discharged from the vessel
- Export – starting on the actual day and time the export container enters (gate-in) the port
- Foreign transshipment – starting on the actual day and time the foreign transshipment container is discharged from the vessel
- Inbound domestic – starting on the actual day and time the inbound domestic container is discharged from the vessel
- Outbound domestic – starting on the actual day and time the outbound domestic container enters (gate-in) the port for loading
- Shut-out domestic – starting on the actual day and time the outbound container enters (gate-in) the port
The assessment of storage charges will start after the expiration of the FSP based on the hours, for example after the 120 hours FSP for import containers.
Currently, the assessment of storage charges starts the day after the expiration of the FSP; for example on the fifth day or after expiration of the four-day FSP for export containers. For import containers though, the storage charge starts on the sixth day at 0001 hours, except in Manila South Harbor and Manila International Container Terminal where the storage charge starts on the sixth day at 0701 hours.
Under AO 005-2025, the storage charge will accrue based on the following:
- Import containers – storage charge will accrue per calendar day after the expiration of 120-hour FSP, to be computed until the actual day and time of exit from the gate or from the designated port, provided that a fraction of a day shall be considered as one day.
- Export containers – storage charge will accrue per calendar day after the expiration of 96-hour FSP, to be computed until the actual day and time of loading onto the carrying vessel, provided that a fraction of a day shall be considered as one day.
- Foreign transshipment – storage will accrue per calendar day after the expiration of 360-hour FSP, to be computed until the actual day and time of loading onto the carrying vessel, provided that a fraction of a day shall be considered as one day.
- Inbound domestic containers – storage charge will accrue per calendar day after the expiration of 48-hour FSP, to be computed until the actual day and time of exit from the gate, provided that a fraction of a day shall be considered as one day.
- Outbound domestic containers – storage charge will accrue per calendar day after the expiration of the 48-hour FSP, to be computed until the actual day and time of loading onto the carrying vessel, provided that a fraction of a day shall be considered as one day.
- Shut-out domestic containers – storage charge will accrue per calendar day after the 48-hour FSP, to be computed upon until the actual day and time of loading onto the carrying vessel, provided that any delay is not attributable to the port terminal management operator (PTMO)/cargo-handling operator (CHO)/terminal operator (TO). A fraction of a day shall be considered as one day. If the cargo is not loaded as scheduled, the resulting fee will be paid for by whoever is at fault. If an outbound domestic containerized cargo has been shut out, the applicable FSP should not be cumulative.
Sample scenarios illustrating the commencement of FSP and the assessment of storage charges are provided in the AO 005-2025 annex.
Examples:
- For an import container discharged on March 10, 2025 at 1 p.m., the FSP started on March 10, 2025 at 1p.m. Storage rates commences after 120 hours or on March 15, 2025 at 1:01 p.m.
- For an export container that entered the port on March 10, 2025 at 1:00 p.m., the FSP will also start on the same date and time. Storage rates commences after 96 hours or on March 14, 2025 at 1:01 p.m.
Under the policy, PPA’s Internet-based Port Operations Receipting for Terminals System (iPorts) will be interfaced or made interoperable with the terminal operating system (TOS) software of TOs, CHOs, and PTMOs for real-time monitoring and storage charge assessments via application program interfaces (APIs).
TOs, CHOs, and PTMOs without a computerized system will be required to develop and implement their own system within two years from effectivity of AO 005-2025. While they are in the process of developing their own system, data will be manually encoded to iPorts by PPA on the next working day after discharge or entry to the port upon receipt of the tally sheet from the TO.
The API specifications for the interface will be drafted. Other software systems of PPA and the TOs, CHOs, and PTMOs that are identified to be relevant for the proper computation of storage charges may be included in the API as well, subject for the approval of all parties.
PPA’s port management offices should ensure real-time monitoring of domestic/foreign containerized cargo movements, and the accuracy of storage charges computation as basis for the proper collection of government revenue, if any.
For ports/terminals where storage charge is payable to PPA, iPorts will be utilized in the real-time monitoring of container movement and assessment of storage charges. – Roumina Pablo
