The full implementation of higher arrastre fees on international containerized and non-containerized cargoes at the Manila International Container Terminal (MICT) and the South Harbor recently took effect.
Importers and exporters using the South Harbor and the MICT started paying an additional 7% on January 16. This completes the 15% increase granted by the Philippine Ports Authority (PPA) in cargo tariffs in 2012. The first tranche of 8% hike was implemented in July last year.
For importers, the total arrastre charge inclusive of value-added tax is now P4,174.24 for a 20-foot container, up P254.24 from P3,920 last year. Meanwhile, 40- and 45-foot containers have the same arrastre charges at P9,577.12 compared with P8,994.72 previously, equivalent to P582.40 more than in 2012.
On the other hand, exporters pay P207.20 higher at P3,408.16 for a 20-footer from the previous P3,200.96, while 40- and 45- foot containers get the same new tariff at P7,827.68 compared with P7,350.56 previously or an increase of P477.12.
The request to raise arrastre and wharfage fees was filed with PPA last year by International Container Terminal Service, Inc and Asian Terminals Inc as a “cost-recovery” measure following higher operating expenses. Using the additional fees, the operators said new equipment will be purchased to improve port services.
The Philippine Exporters Confederation, Inc., Export Development Council and the Association of International Shipping Lines opposed the increase of 20.5% and 21% requested by ICTSI and ATI respectively, citing bad business timing.
After public consultations, PPA granted a 15% upward adjustment to be implemented in two tranches.
Image courtesy of Asian Terminals, Inc