At last month’s Board meeting there was a bit of discussion about how SCMAP seems to have lost its image on advocacies. Some officers still recall SCMAP’s reputation of doing battle with the shipping lines.
After all, DMAP’s first activity was its opposition to a rate increase petition of the domestic shipping lines in 1990. CISO, the forerunner of PLSA, had filed for an overall increase of 39%.
The result of this first activity set the tone for DMAP’s early activities. The judge sided with DMAP’s argument that there was an error in CISO’s Required Revenue calculation. The error came from double counting the increase in one of the cost elements (I cannot recall the details anymore).
As DMAP did not have a lawyer, DMAP was very lucky to receive voluntary assistance from a lady lawyer from the DTI Garments unit. Atty. Aurora Timbol was a feisty strong-willed woman true to her profession. At one point she almost walked out of the court hearing.
Instead of granting the petitioned 39% increase, the MARINA judge granted an overall 25% increase and introduced the so-called fork tariff of plus or minus 5%. For the first time, the CISO cartel did not get the full petition they had filed. Petitions in the years that followed were not granted 100%.
DMAP also became active in other advocacies.
Fundamentally the advocacies can be grouped into two:
- Direct improvement in supply chain cost
- Service improvement
Below is a summary of advocacy work done by DMAP / SCMAP in its first 20 years of existence (1990-2010):
Improvement of Supply Chain Processes – Direct Improvement in Supply Chain Cost
- Reduction and deferment of shipping rate increases (1990 to 2003), including abolition of the 0.3% valuation charge in shipping rates in 1990. These were achieved thru continued participation in MARINA hearings and filing of cases
- Opposition to shipping deregulation rules that pass on the burden from shipping lines having to prove the need for rate increase, to cargo owners having to disprove the need for rate increase (1999-2004)
- Filing of cases questioning the legality of MC153 on deregulation
- Filing of cases vs. unilateral 20%, 6% and 7.5% increases imposed by shipping lines (2001-03)
- Reduction and deferment of cargo handling rate increases (1990 to 2003), achieved thru continued participation in PPA rate hearings, submission of position papers, inputs to PPA on cargo handling rate structure
- Opposition vs. pass-on to cargo owners of funding for port workers social amelioration fund (1999-2000)
- Trucking rates negotiation with INHTA (1996 to 2008)
- Opposition to large unjustified toll rate increases (1999, 2004)
Improvement in Supply Chain Processes – Service Improvement
- Opposition to implementation of Executive Order 59 monopolistic provisions / no public bidding, and subsequent equivalent unsolicited proposal and single terminal operator (1999-2001)
- Advocacy of revision of PPA charter which contains conflict of interest (1999-2005); also advocacy of policy on competition
- Performance appraisal of domestic shipping lines (1995-2001)
- Support for and inputs to EO170 and 170A on Road RORO Transport System and advocacy of shipping alternatives
- Conversion of TRB truck ban at expressways to load limits (1993). Opposition to a 15-hour Manila truck ban (1994). Opposition to a proposed odd-even traffic scheme (1997)
- Implementation of trucking service standards with INHTA
Advocacies pursued by DMAP / SCMAP were very visible for two reasons. First, the actions on cost improvement were rightly focused on transport, that being the largest component of logistics cost. Second they translated directly to improvement in the bottom line.
As SCMAP now has a larger scope, its attention must be trained on a wider sphere. For example it can look into:
- Manufacturing logistics
- Impositions by local governments on delivery trucks
- Product introduction fees imposed by large retailers on manufacturers
- Penalties imposed by large retailers on deliveries outside of time windows
- Parking fees imposed by large retailers on consumers
Logistics Immersion Course – Last Call!
May 17 – 19, 2013-05-04
Itinerary – Manila – Cebu – Manila
Few slots left
Call the secretariat 671-8670
Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email email@example.com. Those interested in SCMAP training and other activities are requested to send their e-mail addresses.