Home » SCMAP Perspective » Earthquakes

Following the solemnity of President Gabby Patag’s wake and funeral, SCMAP members and other organizations in the logistics industry were jolted by a series of negative newsbits, like a series of small earthquakes and not so small earthquakes. It started with a small BIR announcement that new official receipts had to be printed to be used starting July 1. This actually sounded more annoying than expensive. But not for small entrepreneurs who saw wastefulness in throwing away booklets of unused official receipts.


Also among the early newsbits were increases for utilities that affect industry and consumers alike – electricity, water and fuel.


As stakeholders watching the progress of the MNHPI rate hearing, North Harbor users were shocked by a sudden announcement of a nationwide 10% provisional increase in cargo handling rates. Where MNHPI hearings were ongoing, there was a sudden increase in rates at ALL ports in the Philippines. To be sure, MNHPI is included in the list.


SCMAP has registered its “strong objection”. First of all, why the same percentage nationwide? Each cargo handling operator is subject to different circumstances and requirements; for example, different volumes, different costs, different geographical areas, different periods since last increase, different cargo types – domestic vs. international, etc.


From experience, a “provisional” increase is never provisional; it always becomes permanent. On the MNHPI rate increase hearing, SCMAP had asked for a deferment to Q4. The provisional increase has, in effect, thrown that request aside.


SCMAP is also seeking clarification on the basis for the authority of PPA to grant a provisional increase even while public hearings are ongoing.


Finally, the 10% nationwide increase raises the cost of doing business and reduces Philippine competitiveness.


The MNHPI hearing appears to be rushed. PPA called for a hearing on April 3. Where it could have waited for April 15 when the 3012 FS would have been available for better evaluation, it did not. When the PPA asked stakeholders for a rebuttal to MNHPI’s statements, the PPA suddenly granted this 10% “provisional” increase.


Another earthquake that shook the transport industry is the sudden implementation of the ‘new’ GVW limits in the IRR of RA 7894. This caught many by surprise, including the truckers themselves. The issue had been quiet for at least a year. As a major stakeholder in the transport industry, SCMAP was not invited to any pre-implementation meeting. The last meeting we attended was in 2011.


We share the sentiments of the truckers, INHTA and CTAP, where they say that the new provisions in the GVW list are for configurations not commonly used in the Philippines and these are given high tolerances.


One of the most commonly used configuration code 12-3 carrying a 40 ft container, is too restrictive and given 2% tolerance. The maximum GVW for this configuration is only 42 tons, short of the weight when loaded with a 40-foot container.


When the load is too low, the consequences are high trucking cost, more congestion and traffic, and delivery delays.


Conference Sponsorship Packages


Slots are still open for different sponsorship packages for this year’s Annual Supply Chain Conference, to be held at the EDSA Shangri-La on Sept. 12-13, 2013. The levels of sponsorship are:


  • Platinum        P250,000
  • Gold    P150,000
  • Silver  P100,000
  • Bronze           P50,000
  • Patron (Ad sponsor)


Address queries to Carla (671-8670) or Sheryl (842-9892)


Salute to Supply Chain Excellence


SCMAP is calling members to send in their entries now to the 2013 Awards for the following:


  • Supply Chain Operational Excellence
  • Supply Chain Provider of the Year
  • Green Logistics Advocacy


Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com. Those interested in SCMAP training and other activities are requested to send their e-mail addresses.

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