The ports in Manila are almost filled to the brim as cargo owners and consignees—apparently chafing from the initial confusion over Covid-19 lockdown rules that spawned indiscriminate local blockades—are not heeding calls to withdraw cleared, ready-for-delivery and overstaying cargo. As a result, a possible shutdown may happen anytime soon, paralyzing the supply chain.
Philippine Ports Authority (PPA) General Manager Jay Daniel R. Santiago noted there are efforts to transfer overstaying containers from the Manila International Container Terminal (MICT) to a facility inside the Manila North Harbor. However, there is still not enough berthing space for the Manila port terminals to operate at their optimal level.
Already, yard utilization at the ports is almost at 100 percent, with idle containers stacked against and atop each other. Experts say that a utilization rate of about 70 percent is optimal for a productive port.
“Ports, specifically the Manila ports, are the lungs of the country’s commerce and trade. These lungs right now are not functioning efficiently due to congestion. If we continue to ignore calls to withdraw even only those cleared, ready for delivery, and overstaying cargo, these lungs are in danger of total collapse, resulting in full-blown port congestion, or worst, a shutdown, and consequently a shortage in the much-needed goods and supplies which are expected to address the demands of the market,” Santiago explained.
As of Friday, over 800 cleared reefer vans are inside the MICT containing perishables like food, medicines and other essentials; while more than 2,000 dry containers that are already cleared and ready for delivery remain inside the terminal.
The threat of a port shutdown could easily hamper the already-limited movement of goods in and out of Metro Manila due to the limitations on production and mobility with the implementation of the monthlong enhanced community quarantine in Luzon.
“Again, government is appealing to the consignees, cargo owners, brokers, logistics, manufacturers and other supply chain service providers to help us address this situation by withdrawing their cargoes. We really need to clear these cargoes to accommodate the incoming ones as most of our needs to fight this Covid-19 pandemic are in these incoming cargoes,” Santiago said.
As this developed, the PPA, the Bureau of Customs, the Department of Trade and Industry and the Department of Agriculture are considering measures to ease the congestion at the ports.
These measures include the forfeiture of overstaying cargo and reducing the cargo clearing and free storage periods to force cargo owners to withdraw their containers.
Soon, these measures may be implemented through a joint memorandum order.
Image credits: Nonie Reyes