THE Department of Trade and Industry (DTI) is hoping that a new measure seeking to mitigate the surging freight costs amid shortage of container vessels will be passed this year.
Trade Secretary Ramon Lopez told the BusinessMirror they have a draft bill of the Philippine Shippers’ Act submitted to the Congress and is currently under deliberation.
The proposed measure seeks to grant the Maritime Industry Authority (Marina) power to oversee the freight charges—which industry players complained to be higher amid pandemic—being imposed by the logistics service providers.
“Key provision is to have an agency, Marina, that will have a mandate to regulate the freight rates and high destination charges,” Lopez told this newspaper.
The Trade chief said the draft bill has also been presented to the Economic Development Cluster.
The DTI’s proposal is parallel with House Bill (HB) 4462 presented by ANG PROBINSYANO Party-list Representative Ronnie L. Ong. The said bill seeks to make Marina the agency promoting fair and transparent shipping fees among freight forwarders and international shipping lines.
Ong proposes that Marina look after the rate-fixing mechanism of forwarders and agents of international shipping lines and prohibit the collection of shipping fees outside the quotation unless these are reasonable and covered by a contractual arrangement, among others.
Under HB 4462, Marina shall set up an information portal to publish and monitor the daily all-in freight rates per route and permitted destination and other shipping charges. This is in coordination with the DTI and other related agencies and stakeholders.
Deputy Speaker Bernadette Herrera-Dy seeks, meanwhile, filed HB 4316 which seeks to “regulate the application of local charges (at origin and destination) imposed by international shipping lines to comply with existing laws on obligations and contracts and international commercial terminology, as well as establish guidelines.”
HB 4316 proposes that the DTI, Bureau of Customs, Bureau of Internal Revenue, Department of Justice and Philippine Competition Commission (PCC) would primarily enforce the said measure.
Last week, House Committee on Transportation Chair Edgar Mary Sarmiento approved the establishment of a technical working group tasked with consolidating HB 4462 and HB 4316.
Probe on high freight costs
Currently, the Trade department is working with the competition authority on the ongoing investigation of potential price-fixing in the logistics sector that led to high freight costs.
PCC Chairman Arsenio M. Balisacan said price-fixing by cartels is punishable by administrative fine and imprisonment under the Philippine Competition Act (PCA).
Balisacan said PCC is eyeing to conclude the investigation soon but has not yet provided a specific date. “Key is the presence of sufficient evidence to warrant filing of charges against violators of the PCA,” he told the BusinessMirror earlier.
Henry Basilio, chairman of the networking committee on transportation and logistics of the Export Development Council, earlier noted that the cargo handling cost has doubled with the cranage fee amounting to P1,587, in addition to the arrastre fee of P1,575.
Cranage fee is the price paid for the use of cranes when loading and unloading ships. Arrastre fee is charged for the handling, receiving and custody of shipments.
“Logistics, including shipping, is one of PCC’s sector priorities, considering that this sector is vital during the pandemic and to economic recovery,” Balisacan said in an earlier statement.