PPA tells traders to brace for cargo delays

MANILA, Philippines — The Philippine Ports Authority (PPA) has warned the country’s importers and exporters to brace for delays in cargo shipments as several ports in China reel from COVID-19.

The PPA yesterday urged importers and exporters to make the necessary operational adjustments as delays in the delivery of cargo loom due to the partial closure of several ports in China due to the pandemic.

According to the PPA, early preparation is key to reduce the negative impact of the delays in the overall daily operations, thus, allowing flexibility in the long run.

“We need to prepare. Eventually, the delays in cargo shipments will catch up with us due to the congestion being experienced in these transshipment ports,” PPA general manager Jay Santiago said.

The PPA said several transshipment ports under the territories of China have slowed down operations in the past two weeks due to COVID-19.

One of the terminals of the Ningbo Port, the world’s third-largest container port, remains closed.

Other major ports in the region likewise reported congestion owing to the lingering effect of the pandemic, the PPA said.

Majority of Philippine imports and exports pass through these transshipment ports as the country remains as a feeder economy.

“We are encouraging all importers and exporters to take the necessary steps to adjust and secure their operations to mitigate the impact of the slowdowns or partial closures of the big ports in their overall operations,” Santiago said.

The country’s major port gateways, meanwhile, are currently operating under optimum conditions and way below the threshold level of utilization set at 75 percent.

The Manila ports, composed of the Manila International Container Terminal (MICT) and the Manila South Harbor, are operating under normal conditions. The two ports handle 85 percent of the country’s foreign trade volume.

MICT and South Harbor have an average utilization rate of 68 percent and 56 percent, and berth utilization rate of 59 percent and 56 percent, respectively.

Both ports have an average per crane productivity rate of 25 moves an hour, it said.

An average of 12,000 twenty-foot equivalent units of foreign cargoes are being handled at the two ports daily.