State-run Philippine Ports Authority on Wednesday warned of delays in the delivery of cargo over the partial closure of several ports in China due to COVID-19.
PPA urged local importers and exporters to make the necessary operational adjustments to avoid delays in the delivery of cargoes.
Several transshipment ports under the territories of China slowed down operations over COVID-19. On Tuesday, Ningbo Port, the world’s third-largest container port, continued to shut one of its terminals for the 7th straight day as part of efforts to contain the spread of COVID-19’s Delta variant.
Other major ports in the region also reported congestion, owing to the lingering effect of the pandemic.
Majority of Philippine imports and exports pass through these transshipment ports as the country remains as a feeder economy.
“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 Daniel Santiago said.
“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 ports are 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 and the Manila South Harbor are operating under normal conditions. These two ports handle 85 percent of the country’s foreign trade volume.
The two ports 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.
An average of 12,000 twenty-foot equivalent units of foreign cargoes are being handled at the ports daily.
“PPA assures the shippers that Philippine ports, can handle the bulk of the delayed shipments when conditions at the transshipment ports start to normalize,” Santiago said.
