Marcos: Process shipments 24/7 to fix supply chain woes

START OF BOTTLENECK Congestion at the ports, including the Manila International Container Terminal in Manila in this photo taken in January 2022, has led to delays in processing new shipments and delivering raw materials to industries. The government hopes that the Bureau of Customs and Department of Agriculture personnel’s round-the-clock operations at the ports will resolve the problem. —RICHARD A. REYES

President Marcos has ordered the Bureau of Customs (BOC) and the Department of Agriculture (DA) to implement round-the-clock processing of inbound shipments in the country’s ports to address logistics and supply chain issues that adversely affect the flow of goods in the economy.

During his meeting on Wednesday with the Private Sector Advisory Council’s (PSAC) infrastructure sector group in Malacañang, the President stressed the need for continuous shipment processing to accommodate the arrival of more ships in ports across the country.

He directed the BOC, DA, and other government agencies involved in screening and checking imported goods, particularly food and agricultural products, to implement 24/7 port operations.

Mr. Marcos pointed out that all ports should operate continuously, with a full complement of personnel available even at night.

Reducing costs

“Let’s keep it running, whatever you have in the day, that is the same amount, same number of people at night. This is not a skeleton crew but a full complement of personnel who will take care of any kind of business that is [needed] there,” the President was quoted as saying in a statement released Thursday by the PSAC.

“In this business, there’s no after-hours. It’s really 24/7. Let’s not put an extra team, let’s just keep it running. Whatever you have there in the day, let the same number of people that you have, all 24 hours. So, three eight-hour shifts,” he added in a statement issued by the Presidential Communications Office.

READ: Southeast Asia riskiest in shipping, says report

The Chief Executive gave the directive after the PSAC suggested that the BOC and DA implement 24/7 operations across all government services related to logistics and supply chains.

The PSAC argued that this would ensure a continuous inspection, clearance, and payment process and significantly reduce costs and time in X-ray scanning operations on reefer vans or refrigerated trucks or trailers.

Aboitiz Group president and chief executive Sabin Aboitiz, the PSAC lead convenor, welcomed the President’s order for the 24/7 processing of shipments in ports nationwide.

In a statement, he said Mr. Marcos’ directive “marks a significant step toward modernizing our infrastructure and logistics sectors.”

“By ensuring 24/7 port operations, we are poised to see substantial improvements in efficiency and economic growth. The commitment to resolving road blockages and developing a comprehensive supply chain roadmap will further streamline our processes and reduce costs,” he noted.

Present in the meeting representing the PSAC were ports and gaming tycoon Enrique Razon, Metro Pacific and PLDT head Manuel Pangilinan, Eric Ramon Recto of the Alphaland group, investment banker Joanne de Asis, Maynilad Water Services president Ramoncito Fernandez, Metro Pacific Tollways Corp. president Rogelio Singson, Christian Gonzalez of International Container Terminal Services Inc., and Daniel Aboitiz.

The PSAC, comprised of the country’s leading business leaders, regularly convenes and recommends various policies and programs on infrastructure, agriculture, digital infrastructure, health care, jobs, and tourism to the President.

In the same meeting, the PSAC infrastructure logistics subsector group presented the need for a comprehensive supply chain roadmap to reduce costs and address issues, such as erratic pricing, local policies, and toll fees affecting shipments.

According to the PSAC statement, Interior Secretary Benjamin Abalos promised to assign a point person to collaborate with port operators and local government units to resolve road blockages leading to major ports to “alleviate congestion and ensure smooth transport operations.”

The increasing demand for logistics aligns with the growing e-commerce industry, which heavily relies on cross-border goods shipments.

A study by Google, Temasek, and Bain & Co. projected the Philippines’ e-commerce sector would be worth $22 billion by 2025.

External problems

However, the shipping sector is also being affected by external events, such as the ongoing Red Sea crisis.

The militant Islamist group Houthis in Yemen has launched attacks in the Red Sea—one of the world’s busiest shipping lanes—to show its alliance with Palestinians amid the ongoing war between Israel and Hamas.

This situation has forced shippers to reroute their vessels via the Cape of Good Hope in South Africa to avoid the Suez Canal in Egypt, which means longer turnaround time and costlier operations.

According to a report by Business Monitor International, a unit of Fitch Solutions, the conflict might cause shipment delays of six to 15 days due to the rerouting of vessels.

In 2023, ports under the Philippine Ports Authority handled 272.46 million metric tons of cargo, higher than the 259.13 million MT recorded in 2022, surpassing the prepandemic volume of 265.88 million MT.

Last year, the top three ports in terms of cargo were the Manila International Container Terminal, Manila North Harbor, and Semirara Coal Corp.’s private port.

The top 10 import commodities in 2023 were general cargo, mineral fuels, crude petroleum, refined petroleum, cement, iron, steel, passenger motor cars, and wheat and soybean mill feeds. —WITH A REPORT FROM TYRONE JASPER C. PIAD