Reimposition of the 2-hr standby time for cargoes at NH sought

The Philippine Liner Shipping Association (PLSA) is pushing for the reimposition of the 2-hour standby time for cargoes at the North Harbor.

PLSA claimed that shipping lines as well as importers and exporters transporting their cargoes locally have  incurred extra cost that resulted to higher overheads.

Documents showed both shipping lines, shippers and other stakeholders have been having conflicts since the lifting of the two-hour cargo standby allowance at the North Harbor, which is operated by the Manila North Harbour Port, Inc.

The document, on the other hand, was used as basis of the meeting between the PPA and PLSA earlier this month.

It maybe recalled that in 2008, PPA issued memorandum circular 08-2008 entitle Cost Recovery Adjustment in Cargo Handling Tariff where it was provider under ‘other services’ that there will be no charge for the first 2 hours of standby time.

However, prior to the takeover of the new operator of the North Harbor, PPA recalled this order and instead imposed a new schedule of fees where the 2-hour free standby time was deleted.

“Deleting the 2-hour standby time allowance at the MNH (Manila North Harbor) did not ‘level’ the field but rather placed the port at a disadvantage in as much as in all the ports nationwide including the Manila South Harbor, the 2-hour allowance for standby time is still practiced,” PLSA chair and president Sulficio Tagud, Jr., stressed in the document.

“The exclusion is also in violation of certain provisions in the contract (MNHPI North Harbor Contract) specifically Section 5:02 — Cost Recovery Adjustment, under Article V: Port Tariff and Rate Adjustment in cargo handling rates, of which standby time is part of, shall be considered only when the adjustment is proposed after the third year of the contract,” Tagud said.

“PPA has since time immemorial granted 2 hours standby allowance as shown in the cargo handling tariff for all ports nationwide,” Tagud added.

As of the moment, MNHPI is charging at least a thousand pesos for every hour of delay in the movement of both vessels and cargo at the port.

PPA and MNHPI, on the other hand, vowed to study the matter and will meet again with the vessel operators in the next couple of days.

To date, volume at the North Harbor is 3-5% better than the volume handled last year. Efficiency, on the other hand, has been slowly reverted back to normal after both shipping lines and MNHPI agreed to enter into a 50-50 sharing agreement for the use of the lines’ cargo handling equipment while MNHPI is awaiting delivery of their additional cargo handling muscle. ?