UK business chamber seeks delay in storage fee hike for container cargo to middle of 2024
THE INCREASE in storage fees for foreign container cargo needs to be deferred to mid-2024 to mute its inflationary impact, the British Chamber of Commerce of the Philippines (BCCP) said.
“This is not the time, let’s look at it again mid-year. As soon as you put up storage fees there will be a cost increase and it has to go somewhere,” BCCP Executive Director Chris Nelson told BusinessWorld by phone on Sunday.
In a memorandum circular, the Philippine Ports Authority (PPA) said it will increase by 32% storage fees for foreign container cargo starting Jan. 6.
“The British Chamber along with other business groups are against this increase because obviously it has an inflationary impact the charges tend to be passed on. If you put up storage fees this will obviously force companies and businesses to pass on,” Mr. Nelson said.
In a memorandum circular, the PPA said it will charge 32% more for import, export, and transshipment containers and a 150% surcharge for refrigerated containers.
Storage charges for export cargoes will be determined when containers remain at PPA ports beyond the free storage period, which is four calendar days for export cargoes from the day it was received at port and 15 calendar days for foreign transshipments, the PPA said.
“We would ask the PPA to again reconsider if this is the right time. We’re all here trying to fight inflation,” Mr. Nelson said.
Headline inflation slowed to 3.9% in December on easing prices of food and utilities.
December inflation settled within the central bank’s target range of 2-4%.
Meanwhile, the Department of Transportation justified the storage fee increases as they are meant to “discourage” overstaying cargoes.
“The storage hike, although it is quite high, it is some sort of penalty. It is meant to discourage importers from storing goods at PPA facilities,” Transportation Secretary Jaime J. Bautista told reporters on the sidelines of a recent forum. — Ashley Erika O. Jose