CEBU CITY—The Cebu Port Authority (CPA) management has recommended the suspension of the increase in storage fee and penalty for overstaying cargo at the Cebu International Port (CIP).
The higher rates, set in a CPA memorandum on February 2, were implemented on March 3.
It was based on a Cebu Port Commission’s (CPC) resolution on January 22 to increase rates for foreign cargoes, containerized (loaded and empty) and noncontainerized, inbound or outbound.
From six calendar days, free dwell time of import containers was also reduced to five, while the free period for export containers was reduced to four days from five days.
Storage rates for imports now range from P518 for a 20-footer from the sixth to 10th day, from the previous P269.53 per day, to as much as P1,747 for a 45-footer for the 31st day and beyond, from the previous P606.42 per day.
For export boxes, rates were increased to P81 for a 20-footer from the sixth to 10th day, from the previous P67.37 per day, to P434 for a 45-footer for the 31st day and beyond, from the previous P150.53 per day.
For Bureau of Customs-cleared containers beyond the applicable free storage period, fees rose to P5,000 per 20-footer, P8,750 per 35-footer, P10,000 for a 40-footer and P11,250 for a 45-footer.
The CPA said the increase in storage charges was necessary to decongest the port.
“There is a high number of stored containers at the CIP, even though they are already cleared with the Bureau of Customs,” the CPA said.
It said, “With the 30-year-old storage rates at the port, which are considerably low and cheap than storing containers outside but near the port, it has become convenient to make the port area a container yard.
Therefore, the CPA is trying to discourage this by imposing higher storage charges for cleared but overstaying cargoes.”
But the management assures it will find a “win-win” solution to the congestion problem in the CIP.
CPA General Manager Edmund Tan called for a public consultation on Resolution 330-20015, which increased the storage fee and penalty for overstaying freight in the port.
The consultation was in answer to the port stakeholders’ opposition to the resolution. Tan said he will submit his recommendation to the board.
But even if the board heeds the recommendation, it still needs to be published in newspapers.
The publication of the suspension is necessary because Resolution 330-20015, which was passed by the CPA Board, was also published.
The Commission on Audit may question why it was not implemented.
The CPA management noted that the increase in fees has been “very effective,” and has resulted in many withdrawals of cargoes by importers.
It was learned that the importers that delay withdrawals of their cargoes don’t have container yards to store their goods and are using the CIP as their storage space, taking advantage of the lower rates before the passage of the resolution.
Tan said that, when the increase was implemented, importers were forced to withdraw their cargoes immediately.
PNA