Friday, January 28, 2022
HomePorts/TerminalsPPA re-adopts free 2-hour standby time at North Harbor

PPA re-adopts free 2-hour standby time at North Harbor

Charging of stripping, stuffing fee also disallowed

SHIPPING lines and shippers using the North Harbor will get some cost reprieve following the Philippine Ports Authority’s (PPA) decision to re-impose the two-hour standby time for cargoes at the port.

In addition, PPA disallowed North Harbor operator Manila North Harbour Port, Inc (MNHPI) from charging stripping and stuffing fees.

MNHPI charges at least P1,000 for every hour of delay in the movement of vessel and cargo at the North Harbor. Shippers also pay MNHPI for stripping and stuffing even when the service is not conducted by MNHPI personnel.

It maybe recalled that in 2008, PPA memorandum circular 08-2008 entitled “Cost Recovery Adjustment in Cargo Handling Tariff” provided for the free two-hour standby time at the North Harbor. But prior to the port takeover of MNHPI in April 2011, PPA recalled the order and instead imposed a new schedule of fees, deleting the free provision.

In a letter addressed to Philippine Liner Shipping Association chair Sulficio Tagud, PPA assistant general manager for operations Raul Santos said the agency will soon issue a new schedule of cargo handling (CH) tariff at the North Harbor.

“The first two hours allowance for standby time was inadvertently excluded in the schedule of CH tariff of MNH (Manila North Harbor),” Santos said in the letter.

“An errata will be published soon to clarify the tariff.”

Santos said the “no work, no pay” rule also applies for cargo stripping and stuffing.

Under Article II of PPA Administrative Order No. 01-2006, stuffing and unstuffing or stripping services are already included in port-related services rendered by the authorized cargo-handling operator.

The “no work, no pay” principle under PPA Memorandum Circular 47-2000 states that no fee shall be collected by the cargo handler for any service not needed and not rendered. The principle may also be applied if the authorized cargo handler in a government port fails to provide the necessary equipment or gang of laborers to perform cargo-handling work.

“However the principle of ‘no work, no pay’ does not apply to a situation where MNHPI should perform the work but the ship owners/consignees prefer to do the service themselves,” Santos said in the letter.


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