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A 32% hike in storage charges for foreign containerized cargoes after the free storage period as well as a surcharge to storage fee of reefer containers take effect on January 6, 2024
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The adjustments are contained in Philippine Ports Authority Memorandum Circular No. 021-2023 dated December 6
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The new rates apply to all PPA government ports handling foreign containerized cargoes
A 32% hike in storage charges for foreign containerized cargoes after the free storage period (FSP) as well as a surcharge to storage fee of reefer containers are set to take effect on January 6, 2024.
The adjustments are contained in Philippine Ports Authority (PPA) Memorandum Circular (MC) No. 021-2023 dated December 6. The PPA Board of Directors earlier approved the new rates through Board Resolution No. 3261.
READ: PPA approves higher storage fees for foreign containerized cargoes
The new storage rates will apply to all PPA government ports handling foreign containerized cargoes.
Under the adjusted rates under MC 021-2023, the storage charges for import 20-footers after FSP of five days will be:
- P635.32 per day from the 6th to 10th day
- P698.85 per day from 11th to 15th day
- P762.38 per day from 16th to 20th day
- P825.91 per day from 21st to 25th day
- P889.44 per day from 26th to 30th day
- P952.97 per day from 31st day and beyond
For export 20-footers, after the FSP of four days, the rates are:
- P79.40 per day from the 5th to 6th day
- P158.80 per day from 7th to 11th day
- P174.68 per day from 12th to 16th day
- P190.56 per day from 17th to 21st day
- P206.43 per day from 22nd to 26th day
- P222.31 per day from 27th to 31st day
- P238.19 from 32nd day and beyond
For transshipment, after the 15-day FSP, the rates for a 20-footer are:
- $14.44 per day from the 16th to 20th day
- $15.88 per day from 21st to 25th day
- $17.33 per day from 26th to 30th day
- $18.77 per day from 31st to 35th day
- $20.22 from 36th to 40th day
- $21.66 per day from the 41st day and beyond
Reefer container storage rates for imported 20-footers, after the FSP of five days, will be:
- P1,588.3 per day from the 6th to 10th day
- P1,747.13 per day from 11th to 15th day
- P1,905.95 per day from 16th to 20th day
- P2,064.78 per day from 21st to 25th day
- P2,223.60 per day from 26th to 30th day
- P2,382.43 per day from the 31st day and beyond
For an export 20-footer reefer, the storage rate after the FSP of four days are:
- P198.50 per day for the 5th to 6th day
- P397 per day for 7th to 11th day
- P436.70 per day for 12th to 16th day
- P476.40 per day for 17th to 21st day
- P516.08 per day for 22nd to 26th day
- P555.78 per day for 27th to 31st day
- P595.48 per day the 32nd day and beyond
For transshipment reefer containers, the storage rate after the FSP of 15 days for a 20-footer are:
- $36.10 per day for the 16th to 20th day
- $39.70 per day for 21st to 25th day
- $43.33 per day for 26th to 30th day
- $46.93 per day for 31st to 35th day
- $50.55 per day for 36th to 40th day
- $54.15 per day for 41st day and beyond
MC -21-2023 also covers rates for 35-footer, 40-footer, and 45-footer containers.
In an October 18, 2023 public consultation, the PPA Commercial Services Department noted that storage fees for foreign containers have stayed the same since 2014, even though there was an increase in 2014. Some foreign containers still stay in PPA ports beyond the FSP.
PPA said raising storage rates is a better use of the yard and ensures quick removal of import containers, avoiding congestion.
A surcharge on reefer storage is meant to encourage importers to quickly clear their containers, freeing up crucial storage space in ports and discouraging long-term storage use.
PPA general manager Jay Daniel Santiago suspended refrigerated container acceptance in December 2022 to January 2023 due to 100% congestion. With containers staying for six to seven months, the agency converted regular warehouses into reefer spaces, arguing that current port storage costs are more economical than private warehouses, causing artificial congestion.
The Philippine Exporters Confederation, Inc. and foreign chambers of commerce, including the American Chamber of Commerce of the Philippines, German-Philippine Chamber of Commerce and Industry, and British Chamber of Commerce Philippines, called for an analysis of the proposed rate increase to prevent undue harm.
The Supply Chain Management Association of the Philippines disapproved of the proposed rate increase, considering it poorly timed amid recent increases in transport fare, minimum wage, and basic commodity prices.
In the October public consultation, PPA clarified that the storage charge increase is not meant to generate revenue for the agency. It stressed that cargo owners can avoid these fees by promptly removing their containers within the FSP.
From 2014 to 2022, PPA ports handled a total of 13.98 million foreign containers, of which 48% stayed within the FSP and 52% stayed beyond the FSP. Of the 7.31 million containers that overstayed, 50.27% were imports, 49.71% were exports, and the rest were transshipments.
Within the overstayed containers, 92.07% were dry containers, and 7.93% were reefers. PPA specified that 66% of the containers staying beyond the FSP were at Manila International Container Terminal, 30% at Manila South Harbor, and the remaining 4% at other PPA international ports. – Roumina Pablo
