Shippers seek TRO
on freight, passenger rate increases
THE Distribution Management Association
of the Philippines (DMAP) recently filed a complaint
with the Maritime Industry Authority (MARINA)
regarding the impending rate increases by domestic
shipping lines.
In an interview with PortCalls,
DMAP director Cora Curay said the group is requesting
the maritime agency to issue a temporary restraining
order (TRO) on all domestic lines set to impose
the increase next week.
Various ship operators - Aboitiz
Transport System Corp. (ATSC) and subsidiary Cebu
Ferries Corp., Sulpicio Lines, Lorenzo Shipping
Corp. (LSC), Solid Shipping Lines Corp., NMC Container
Lines, Inc. and Oceanic Container Lines, Inc.
- have filed notices of an upward adjustment in
freight and passage rates with the MARINA last
month. The 14.5% freight rate increase will be
on a staggered basis, half will be implemented
starting next week, and the rest by January 1,
2005.
"The shippers all agree that
the 14.5% rate increase is exorbitant. This is
an abuse in the implementation or practice of
the deregulation policy," Curay said, adding
MARINA should also understand there are still
unresolved issues that must first be addressed.
The deregulation of shipping rates
aims to create an investment climate designed
to attract new players in the domestic shipping
industry under the environment of free market
competition.
However, Curay said the successive
rate hikes are detrimental to the ultimate shippers.
She noted DMAP still has a pending appeal with
the Department of Transportation and Communications
(DOTC) regarding the previous increases.
"The DOTC could not attend
to this appeal so it was handed to the MARINA
last June or July. But up to now, there has been
no clarification on that yet," she noted,
adding an additional rate increase is also a violation
of the Public Service Act.
In the complaint, DMAP questioned
why shipping lines chose to impose a General Rate
Increase (GRI) instead of an Automatic Fuel Rate
Adjustment (AFRA).
Curay said the shipping lines should
have imposed an AFRA since their common justification
is to keep up with the continuous increases in
the price of fuel.
She said shippers want transparency
in the increases. "A GRI is not justifiable,
whereas with AFRA, we believe that the components
of the increase will be properly determined,"
she explained.
She expressed confidence that MARINA
will come up with the TRO before the increases
are implemented next week.
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PSB, PortCalls
to identify top international seafreight forwarders
in RP
THE country's leading international
seafreight forwarders for 2002 and 2003 will be
recognized in tomorrow's (Oct 14) 1st Philippine
Seafreight Forwarders Awards at the Heritage Hotel.
Around 200 industry personnel have
signed up to attend the gathering, organized by
the Philippine Shippers' Bureau and PortCalls.
A total of 13 awards will be given,
five major ones and eight citations.
The main awards are:
• Freight Forwarder of the
Year
- Highest cargo liftings - export and import -
for 2002 and 2003
• Overall winner for the major trade routes
(US, Asia and Europe)
- Highest cargo liftings - export and import -
for three key trade routes for 2002 and 2003
• Overall winner for Asia
- Highest cargo liftings - export and import -
for Asia for 2002 and 2003
• Overall winner for US
- Highest cargo liftings - export and import -
for US for 2002 and 2003
• Overall winner for Europe
- Highest cargo liftings - export and import -
for Europe for 2002 and 2003
Eight companies will also be cited in the following
categories:
• Best in Export (2002 and 2003)
- Highest export liftings for all trade routes
for 2002 and 2003
• Best in Import (2002 and 2003)
- Highest import liftings for all trade routes
for 2002 and 2003
• Best in Export - Asia (2002 and 2003)
- Highest export liftings for Asia for 2002 and
2003
• Best in Export - USA (2002 and 2003)
- Highest export liftings for US for 2002 and
2003
• Best in Export - Europe (2002 and 2003)
- Highest export liftings for Europe for 2002
and 2003
• Best in Import - Asia (2002 and 2003)
- Highest import liftings for Asia for 2002 and
2003
• Best in Import - USA (2002 and 2003)
- Highest import liftings for US for 2002 and
2003
• Best in Import - Europe (2002 and 2003)
- Highest import liftings for Europe for 2002
and 2003
The awards are based solely on
statistics submitted to PSB by PSB-accredited
freight forwarding companies for the years 2002
and 2003. Submitted every quarter, these statistics
are a requirement for renewal of accreditation.
Awardees were in the top 50 listing
of their respective category. They submitted both
export and import figures for 2002 and 2003, reflecting
consistency in performance.
Cargo statistics submitted by finalists
were also validated by a team of PSB personnel
via a company visit. Results were double checked
by Sycip Gorres Velayo.
All attendees will receive a CD
containing all winners as well as finalists in
each category with their corresponding cargo liftings.
To attend the 1st Philippine Seafreight
Forwarders Awards night, call PortCalls at 551-1775,
551-3871 or 834-2416.
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MIAA tightens security
at NAIA Terminal I
THE Manila International Airport
Authority (MIAA) has further tightened security
at the Ninoy Aquino International Airport (NAIA)
Terminal I by ordering the removal of 22 small
food and souvenir stalls within airport premises.
Among those ordered to close shop
at the start of this month are snack outlets ABO
Food Stuff, OBJ Snack Counter, Deli France, El
Cielo Snack Counter, Buko Jeff Café, and
Amparo Snack Bar. Also terminated were the services
of two hotel counters and a phone card service
provider.
MIAA general manager Alfonso Cusi
said the authority has received complaints that
the outlets cause congestion, especially during
peak hours. "Congestion at the airport tends
to lead to confusion and when there is confusion,
threat to safety and security increases,"
he noted.
He stressed security and safety
are the primary concerns of MIAA and the presence
of the business establishments has been identified
as a possible security threat to the country's
premier international airport.
MIAA notified the affected concessionaires
that their contracts, usually renewed monthly,
would no longer be renewed from the start of this
month.
The displaced concessionaires have
been offered new contracts in other locations
that will not jeopardize the security of and orderliness
in the international airport.
"This action may not please
some of our business clients but we have to make
this important decision to bring the country's
premier airport closer to international standards,"
Cusi said.
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NENACO beefs up
security
NEGROS NAVIGATION COMPANY (NENACO)
recently unveiled its reinforced security guidelines
in preparation for the expected passenger surge
during peak season.
Part of the security program is
the 24-hour security office open seven days a
week.
"This is to ensure the continued
presence of security personnel on all areas of
Pier 2 and to immediately respond to the needs
of passengers and employees," disclosed the
company's security coordinator Job Motril.
On top of the 24-hour security
office, the company's security team is also putting
emphasis on security personnel discipline. Motril
admitted there has been a deterioration in the
quality of discipline and service of the old security
team.
NENACO Labor Relations and Security
head Ramon Kabigting, on the other hand, said
its team will focus on the cleanliness and safety
of the port. He said the company is hoping to
implement a cleanliness and orderliness program
before the start of the peak season, or before
next year. This includes the orderly queueing
of taxis outside, more visibility of security
personnel and a clean Pier 2 environment.
As part of a safe and secure Pier
2, the security office recently conducted a bomb
detection seminar for employees, porters and security
personnel. Conducted in three batches, the seminar
focuses on bomb detection and crowd evacuation.
The orientation includes familiarization
with different types of explosive devices and
actual search that requires representatives to
use their skills to listen, scan, detect, locate
and identify explosive devices.
Through its tight security measures,
NENACO recently became instrumental in the arrest
of a suspected drug courier carrying a cargo of
dried marijuana leaves while boarding its Iloilo-bound
vessel.
Earlier, NENACO had entered into
an agreement with the Dangerous Drugs Board to
help government in its battle against illegal
drugs.
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Shipping firms
urged to fix accounting discrepancies
SHIPPING companies were told to
fix discrepancies in the profits they declare
and the actual revenues they earn before the government
checks on their records.
The Bureau of Internal Revenue
(BIR) directed the companies following a pronouncement
made by Negros Oriental Rep. Herminio Teves regarding
alleged fraud in the companies' declaration of
taxes.
Internal Revenue Commissioner Kim
J. Henares said the BIR has been employing "friendly
persuasion" to make these companies declare
the correct amount of fare they collect.
While records from the Philippine
Coast Guard showed a total of 55 million people
rode passenger ships in the country last year,
amounting to an average fare cost of P400, the
BIR collected only P950 million in taxes from
the shipping sector last year.
Teves said shipping companies opt
not to declare their true profits to evade payment
of the proper amount of taxes. He added he believes
proper collection of taxes could help the government
patch up the budget deficit.
The BIR earlier announced it would
come out with tax manuals to guide various industries
in calculating their tax liabilities.
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Study on seafarer's
ID card complete
THE Maritime Industry Authority
(MARINA) is ready to proceed with the second phase
of the International Labor Organization Convention
No. 185 or the Seafarers Identity Document (SID).
In a recent press briefing, Unisys
Philippines Limited announced the completion of
the study to identify the requirements to improve
the country's existing system in seafarers' identification.
Unisys Philippines conducted a
review, clarification and evaluation of the existing
and planned seafarers' identification system,
including relevant policies, directives and guidelines,
particularly in relation to the new international
requirements.
It developed conceptual designs
and defined technical requirements and specifications
such as the database requirements and detailed
data model. Training needs to implement the SID
were likewise assessed.
The study was funded through a
grant agreement between the United States Trade
and Development Agency and the MARINA amounting
$515,000.
The SID is a new biometric identity
verification system that will be applied for 1.2
million maritime workers handling 90% of the world's
trade. In the Philippines, there are approximately
250,000 seafarers that would benefit from SID.
Under the system, a biometric template
will turn seafarer's fingerprints into an internationally
standardized two-dimensional barcode on the SID.
The ILO convention is aimed at preventing terrorists
from infiltrating shipping crew.
MARINA administrator Vicente Suazo
said the maritime agency's main concern is the
source of funding for the project. He said MARINA
has already written the US government and the
ILO to help finance the program.
Suazo said the total cost needed
to carry out the actual implementation of the
project, including the acquisition of the required
equipment and hardware, could top $4 million.
"We are hoping that the US
government will stay true in its commitment to
help develop and modernize the Philippine maritime
sector," he said, adding the Unisys has also
committed to aid MARINA source the needed funds.
At present, there are already three
signatories to the SID convention: France, Nigeria
and Jordan. Suazo said the Philippines, which
has not yet ratified the convention, is most likely
to follow the February deadline for the implementation
of the convention.
"The targets are okay but
we fear that there might be time constraints since
we are having a hard time sourcing the funds,"
he said.
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