Foreign carriers subject of most complaints at Shippers’ Protection Office

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  • Foreign carriers subject of most complaints at Shippers’ Protection Office
  • Since it was established in 2020, the SPO has received 88 complaints and inquiries relating to shipping lines
  • Of the total, 68 were complaints against international shipping lines
  • As of June 9, four were inquiries that have been addressed
  • Port users and stakeholders have long asked the government to oversee operations and charges of international shipping lines

Foreign carriers were the subject of most complaints at the Shippers’ Protection Office (SPO).

Since its establishment in 2020, the SPO has received 88 complaints and inquiries, according to data from the Philippine Ports Authority (PPA).

Of the total, 68 were complaints against international shipping lines for unreturned container deposit, uncollected container refund, detention charges, demurrage, storage charges, cleaning fees, destination charges container imbalance charges, empty return location, and unreleased delivery order/container release order, PortCalls learned.

Four of the 88 total complaints have been addressed as of June 9. Of the 84 remaining complaints, 18 were resolved/closed; 10 referred to other government agencies; three waiting for comments from persons complained of; two for issuance of special order; and 51 returned for non-compliance with the prescribed format.

Other complaints were against terminal operators, a domestic shipping line, a freight forwarder, a trucker, a container yard operator, and a bunker service provider.

There were also complaints on the increase in sea/air freight charges, change of port of discharge, and wrong gross weight submitted.

No direct oversight

Port users and stakeholders have long asked government to oversee operations of and charges levied by international shipping lines. Currently, no government agency has direct jurisdiction over carriers, although their agents/local offices are required to register with the Maritime Industry Authority and to comply with Customs and tax rules.

In 2019, there were attempts to regulate local shipping charges through a joint administrative order. This was later replaced with a plan for an executive order that has yet to materialize.

Last January, the House of Representatives approved on third and final reading House Bill (HB) No. 10575, which seeks to strengthen government agencies’ oversight functions over charges imposed by international shipping lines operating in the Philippines.

HB 10575, which has been transmitted to the Senate for concurrence, also seeks to regulate and standardize local charges imposed at both origin and destination by foreign shipping lines.

Grievance mechanism

The SPO was created through Department of Transportation (DOTr) Department Order (DO) No. 2020-008 as part of temporary measures to protect the public during a state of national calamity “from the impact and effects of exorbitant and unreasonable shipping fees resulting in increased prices for domestic consumers.”

READ: Shippers’ Protection Office created to handle complaints on shipping line charges

The order mandates SPO to protect domestic and international shippers “against unreasonable fees and charges imposed by domestic and international shipping lines.” The office should look into “all complaints and issues related to the rates, charges, practices and operations of international and domestic shipping lines in the country.”

The SPO is headed by the PPA general manager as chair and the administrator of the Maritime Industry Authority as vice chair. The SPO Secretariat is headed by PPA’s Port Operations and Services Department.

PPA general manager Jay Daniel Santiago earlier said the role of the SPO was to provide a grievance mechanism against unscrupulous practices of shipping companies.

Santiago said “unregulated shipping charges is a legislative and regulatory issue and is not the reason why complaints have not been resolved.”

He explained: “The issues can be resolved if the parties agree to resolve it between themselves whether or not there are regulations on shipping charges.

“It does not have any authority to render any form of judgment for or against any party.” – Roumina Pablo