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Empty container depots of Alliance of Container Yard Operators of the Philippines (ACYOP) members record high utilization due to strong returns arising from high import volumes and delays in vessel arrivals
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The average utilization in ACYOP members’ yards in Metro Manila ranges from 85% to 87% while utilization at a member’s depot in Balagtas, Bulacan is at 70%
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ACYOP and Association of International Shipping Lines expect the situation will persist but that measures are being made to address the issue
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A Balagtas yard is adding 1,000 TEU capacity by October while another Balagtas depot with 2,000 TEU capacity will start operations before end of September
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An ACYOP officials said that even with high utilization rates, empty container return and withdrawal at members’ yards are still manageable
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Some industry groups have claimed container yards are congested, judging by the difficulty experienced in getting slots to return empty containers
Empty container depots of Alliance of Container Yard Operators of the Philippines (ACYOP) members record high utilization due to strong return rates arising from high import volumes and vessel arrival delays.
The average utilization in ACYOP members’ depots in Metro Manila is at 85% to 87% while a member’s Balagtas, Bulacan yard has 70%, ACYOP president Roger Lalu told PortCalls in an email. Even with these utilization rates, Lalu said empty container return and withdrawal at members’ yards are still manageable.
ACYOP counts as members Brightpoint Logistics Corp., ESAFE Logistics Services, Inland Corp., Sea Container Depot Corp., and TBS Container Yard OPC. They account for about 20% of total empty container yard capacity. Manila terminals and non-ACYOP members account for the rest.
The Practicing Customs Brokers Association of the Phils. Inc. and Port Truckers, Customs Brokers Multipurpose Cooperative in a press conference on September 9 said container yards are congested, judging by the difficulty they are experiencing in getting slots to return empty containers.
They claim depots in Metro Manila, as well as in Cavite and Bulacan, are almost full that it takes them days to get a slot to return empty boxes. When they do get a slot, they have to queue before they enter the yard. The groups said this means additional costs, lost opportunity to handle more containers, and drivers leaving due to difficult working conditions.
The groups are asking the Bureau of Customs to intervene. They’re also urging shipping lines to put up their own empty container depots to address the issue of high utilization.
Lalu said the high utilization arises from more empty containers being returned to depots than those being withdrawn. He added that import containers are increasing, especially during the “ber” months preceding the Christmas season, which adds to the number of empty boxes.
Vessel delays fuel high utilization
Association of International Shipping Lines (AISL) president Patrick Ronas said in an email to PortCalls the high utilization of depots is mainly due to the delays of vessels coming to Manila.
“Not a fault of the carriers or our terminals but is a result of delays coming from other ports,” Ronas said.
“As you will know, a big portion of our trade comes from China and considering the on-and-off operations due to China’s zero COVID policy, the productivity is at times unpredictable. When these vessels are unable to come on time to Manila, then it gets delayed in loading empties,” Ronas said.
“This means that the dwell time of units in the terminals increase. The terminals will therefore have to temper the acceptance of empties as it has to leave space for the laden containers that are coming in from the vessels. When the empties are loaded onto the vessel, then the terminals can begin to receive empties coming from the off-dock depots.”
Ronas said the situation may persist until next year or in the near term, but noted that “containers and ships are moving.”
Lalu said as much, considering the opening of the economy. The situation “will persist, but we will just have to manage, take plans and actions to further improve our services.”
He said ACYOP is continuously finding ways to further improve the services of its members.
ACYOP officially launched its online booking system in October 2021 to better handle and schedule the return, withdrawal, and repositioning of empty containers in member-operated yards. Five member depots are currently using the system.
The group is also working on the second phase of its online booking system that will allow truckers to book an appointment for empty container return through a mobile app to make it more accessible and provide truck drivers visibility on their booking appointments.
READ: Coming soon: An app for empty container return booking
Moreover, an ACYOP member’s Balagtas depot will add 1,000 twenty-foot equivalent units (TEU) of capacity by October.
Another ACYOP member will also open and operate a 2,000 TEU capacity yard in Balagtas before the end of September.
Ronas, meanwhile, said there are depots and ports that can accommodate empty containers, such as Subic port, which is only 54% utilized.
“It can be used anytime but are we ready to accept that there [is] additional cost by doing so,” he noted.
Ronas said other yards are embracing technology to enhance their operations while other depots are way below their utilization figures.
For shipping lines, Ronas said liners continue to focus on “ensuring that containers are shipped not only to meet customs requirements but also make sure that they are sent to container-deficit countries where they are needed more.”
He said shipping lines have also agreed to follow truckers’ demands in addressing documentation issues when they get the delivery order and have nominated the depots where empty containers are to be returned.
He said the Department of Trade and Industry is hearing complaints of some stakeholders and is trying its best to come up with a solution and push forth the use of technology in the process.
“We are supportive of this, as it takes into account how we can modernize the way we do our business,” Ronas noted.
“Our hope is that we should all collaborate instead of complain and whine in each forum with no clear metrics on what is expected from each one,” he added.
“In a nutshell, we are in a situation where the volume has far exceeded what it was 20 years ago and we all have to adjust to it. The current situation is a result of progress and we therefore have to be progressive in the way we should face such problems,” Ronas said. – Roumina Pablo
