Home » Breaking News, Customs & Trade, Maritime, Ports/Terminals » Port of Cebu cargo-handling charges rise 5% from Oct 19
Cebu port

In the first quarter of 2019, Cebu port handled 102,282 twenty-equivalent units, a 19.6% growth from 85,521 TEUs in the same period last year. Phto from cargo-handling operator Oriental Port and Allied Services Corp.

The Cebu Port Authority (CPA) began implementing on Oct 19 a 5% increase in cargo-handling charges for foreign cargoes at the Port of Cebu.

The 5% rate hike is the first tranche in the 10% across-the-board increase in foreign cargo-handling tariff (excluding for cement, iron, and steel products) in the Port of Cebu under CPA Memorandum Circular (MC) No. 12-2019 dated September 27 and signed by CPA general manager Leonilo Miole.

MC 12-2019—which covers rates for containerized and non-containerized cargoes, special and ancillary services, standby charges, and equipment rental—is pursuant to CPA Board Resolution No. 753-2019 and was issued “in the interest of ensuring smooth operation of the foreign cargo handling operations in the Port of Cebu.”

The rate increase will be implemented in two annual tranches of 5% as approved by the Cebu Port Commission, CPA’s governing body, and as presented during the public consultation held on September 10, 2019.

The second tranche will take effect one year after the implementation of the first tranche on October 19. The last cargo-handling rate increase for foreign cargoes of 10% in 2017.

Aside from implementing the rate increase, MC 12-2019 also modified some of the cargo-handling services for foreign cargoes.

Under the circular, containers weighing 33 tons and above will be charged with 150% of applicable arrastre charges for 33 to35 tons, 200% for 35.01 to 37 tons, 250% for 37.01 to 39 tons, and 300% for over 39 tons.

There will also be charges for stripping on board the vessel and these will depend on the rate of the services rendered such as stripping, hourly equipment rental for non-containerized cargo, stevedoring for non-containerized cargo, and empty container handling (stevedoring and cranage).

The use of level luffing crane in Cebu International Port (CIP) has been rendered obsolete and low-bed truck has been added as available equipment for rent from the cargo-handler for non-containerized cargoes.

The workshift for setevedores (applying only for CIP) has likewise been changed under MC 12-2019, and is now 8am to 8pm for the day shift and 8pm to 8am for the night shift with a total of two hours break for meals and rest every day. The deployment of gang/manpower will be at 8am for the day shift and 8pm for the night shift.

The rate increase comes after CIP’s annual capacity has risen to 900,000 twenty-foot equivalent units (TEUs) following the inauguration of the port’s new P1-billion finger pier.

READ: Cebu port expands capacity with launch of P1B finger pier

The finger pier, a project of CIP cargo-handling operator Oriental Port and Allied Services Corp in cooperation with CPA, started operating on October 7 and will allow the terminal to handle more cargo traffic and help decongest the Cebu hub.

In the first quarter of 2019, Cebu port handled 102,282 TEUs, a 19.6% growth from 85,521 TEUs in the same period last year. Foreign non-containerized cargoes likewise grew 5.5% to 2.216 million metric tons (mt) from 2.101 million mt in 2018. – Roumina Pablo

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