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THE
Mindanao Federation of Shippers Association (Minfesa)
wants ship owners to give their local offices in
southern Philippines the power to decide on concerns
about freight rates and other issues on competitiveness
in order to resolve these in an expedient manner.
In a
position paper given to government agencies and
carriers, Minfesa said the length of discussions between
shippers and shipping firms could be shortened if the
Mindanao branch of carriers could answer and decide on
issues about the cost of freight.
The
current practice is that only main offices may decide on
rates—a practice deemed by shippers as “too cumbersome.”
“Ship
owners and operators should empower respective local
offices to avoid delays in decision-making, particularly
[on] issues concerning the upward adjustments of freight
rates,” the group said in their paper.
“Marina
[Maritime Industry Authority] should also issue a
circular organizing dialogues between the ship owners
and shippers’ associations at the local level,” the
group added.
Today
there is no forum where the majority of
Mindanao shippers may hold a dialogue on current issues between
and among the associations of shippers, the local
chamber of commerce, as well as ship owners and
operators.
Shippers
are using as model the initiatives of Northern Mindanao
Shippers Association, which created a body called the
Shippers and Shipping Providers Consultative Council,
that serves as a forum for various stakeholders.
Since
2000 shippers would like to establish communication
lines with local and international carriers and make
local products more competitive in the global market.
The
ideal would be to meet with service providers and come
up with a possible win-win solution and avoid the
negative impact of different issues weighing in on the
operations of both shippers and providers. A World Bank
report published early last year showed the Philippines,
at $1,336 per twenty-footer container, has one of the
highest logistics costs in Asia.
Apart
for that, there were also possible additional fees that
include $30 bill of lading fee; $30 terminal-handling
charge; $9 chassis rental; $70 fuel-adjustment factor;
$35 telex-release fee; $11 loading fee; $46.02
cargo-handling/arrastre fee; and $5.19 export wharfage.
Except for the wharfage fee, the additional charges go
to the foreign liner.
In
comparison,
China
has an average cost of $335 per TEU (twenty-foot
equivalent unit); Singapore $382; and Thailand $848.
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