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The Maritime Industry Authority called for strict implementation of an order requiring all domestic shipping lines to allocate space on their vessels for agricultural and food products and grant a discount to these cargoes
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MARINA Advisory No. 2023-07 said MA 2020-54 should be strictly implemented “to ensure the efficient flow of agricultural products nationwide to meet the demands under the new normal trend”
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Under MA 2020-54, liners should allocate at least 12% of a vessel’s cargo capacity per voyage exclusively for agricultural and food products
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Domestic shipping lines must also give a discount of no less than 40% of their shipping rates to all agricultural and food products
All domestic shipping lines must allocate space on their vessels for agricultural and food products, and extend a discount to these cargoes, the Maritime Industry Authority (MARINA) reiterated in a recent order.
MARINA Advisory No. 2023-07 dated March 9 reiterates MA 2020-54 and called for its strict implementation “to ensure the efficient flow of agricultural products nationwide to meet the demands under the new normal trend.” MA 2023-07 took effect immediately.
MA 2020-54, issued in July 2020, provides the guidelines for the Department of Transportation’s (DOTr) Department Order No. 2020-007 directing all domestic shipping lines to give a discount of no less than 40% of their shipping rates to all agricultural and food products.
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DO No. 2020-007 also requires the liners to allocate no less than 12% of a vessel’s cargo capacity per voyage exclusively for agricultural and food products.
MA 2023-07 said the reiteration is “in the interest of service” and in view of the Philippine Council for Agriculture and Fisheries’ issuance of Resolution No. 42 calling on DOTr to strengthen the monitoring of domestic shipping lines’ compliance with DO 202-007.
MA 2020-54 covers all liner services as defined under the 2014 amendments to the implementing rules and regulations of Republic Act 9295, or the Domestic Shipping Act of 2004.
Cargoes covered under MA 2020-54 are agricultural and food products shipped in whatever manner or form, such as, but not limited to, roll-on/roll-off (Ro-Ro) cargoes and conventional cargoes, whether loose or bulk.
Agricultural and food products are defined as any product or commodity, raw or processed, that are marketed for human consumption, except water, salt, and additives. Animal feeds are also not considered agricultural and food products.
Under MA 2020-54, all domestic shipping lines must extend to all the agricultural and food product cargoes given the 12% allocated space a discount of no less than 40% of their published shipping rates for such cargoes.
In case of inter-port operation, the vessel is required to comply with the requirement at the port where the 12% space allocation was utilized irrespective of whether it is the port of origin or the subsequent port of call. This rule also applies to the 40% rate discount.
Shipping lines may opt to offer for pre-payment/hard blocking the 12% allocated cargo space for the purpose of applying the 40% discount.
The shipowner/operator may also offer the cargo space allocation to shippers of other types of cargoes if the 12% minimum space is not filled within 12 hours before a particular voyage starts.
The 12% allocated cargo space will be granted on a “first come, first served” basis.
As with DO 2020-007, domestic shipping lines are not precluded from giving more than the 40% discount.
DO 2020-007 was issued in support of the government’s policy, especially during the coronavirus disease pandemic, “to ensure food availability and affordability, boost domestic agricultural production and food processing; and ensure that their movements shall remain unhampered.” – Roumina Pablo
