On February 6, 2025, the second tranche of the cargo handling tariff increase at Manila ports took effect, marking the completion of a 16% escalation approved by the Philippine Ports Authority (PPA) in the previous year. The initial 10% increase was implemented on August 6, 2024, followed by the recent 6% adjustment.
Understanding the Cargo Handling Tariff Hike
Breakdown of the Tariff Adjustments in Manila Ports
The tariff adjustments encompass various charges for both containerized and non-containerized cargoes. Below is a detailed breakdown:
- Vessel Charges (Stevedoring) for Containerized Cargoes
| Cargo Type | 20-Footer Loaded | 40-Footer Loaded | 20-Footer Empty | 40-Footer Empty |
| Non-Self-Sustaining Vessel, Container Yard/Full Container Load (FCL) | $134.563 | $188.232 | $113.113 | $145.723 |
- Containerized Cargo Charges (Arrastre)
| Cargo Type | 20-Footer | 40-Footer |
| FCL Import | PHP 5,496 | PHP 12,608 |
| FCL Export | PHP 4,487 | PHP 10,305 |
- Vessel Charges (Stevedoring) for Non-Containerized Cargo
| Cargo Type | Palletized (per Revenue Ton) | Non-Palletized (per Revenue Ton) |
| Bagged Cargoes | PHP 103 | PHP 264 |
| Frozen Cargoes (Unpacked Fish) | PHP 819 | N/A |
| Frozen Cargoes (Fish in Cartons) | PHP 548 | N/A |
| Others (Crates, Boxes, Cases, Drums) | PHP 78 | PHP 114 |
- Cargo Charges (Arrastre) for Non-Containerized Cargo
| Cargo Type | Palletized (per Revenue Ton) | Non-Palletized (per Revenue Ton) |
| Bagged Cargoes | PHP 173 | PHP 390 |
| Frozen Cargoes (Unpacked Fish) | PHP 1,466 | N/A |
| Frozen Cargoes (Fish in Cartons) | PHP 979 | N/A |
| Others (Crates, Boxes, Cases, Drums) | PHP 173 | PHP 219 |
Source: Philippine Ports Authority Memorandum Circular No. 008-2024
Rationale Behind the Increase
The tariff hike is grounded in the provisions of PPA Memorandum Circular No. 008-2024, which enforces the earlier MC No. 007-2024. These memoranda formalize the 16% increase in cargo-handling tariffs at MICT and Manila South Harbor, as sanctioned by PPA Board Resolutions Nos. 3298 and 3299.
Port operators Asian Terminals Inc. (ATI) and International Container Terminal Services, Inc. (ICTSI) had initially proposed tariff increases of 16.55% and 17%, respectively. Under PPA regulations, terminal operators are permitted to apply for tariff adjustments if the consumer price index (CPI) has risen by at least 5% over a three-year period. Both ATI and ICTSI presented data indicating that the CPI had indeed increased by the requisite amount since the last tariff adjustment.
Stakeholder Responses and Concerns
Prior to the approval of the tariff adjustment, the Philippine Exporters Confederation, Inc. (PHILEXPORT) appealed to the PPA to postpone the increase, citing the export industry’s struggle with unstable market conditions. Despite these concerns, the PPA proceeded with the implementation, emphasizing the necessity of the adjustment in line with economic indicators.
Implications for Consumers and Businesses
Both ATI and ICTSI have assured stakeholders that the tariff adjustments will have a minimal impact on the cost of basic goods and commodities, estimating an increase of less than 1%. However, businesses involved in logistics, import, and export should anticipate slight upticks in operational costs. It is advisable for these entities to review their pricing strategies and supply chain operations to mitigate potential financial impacts.
Featured Cargo Forwarders: Understanding Their Role in the Supply Chain
As businesses navigate the challenges posed by the cargo handling tariff hike at Manila ports, cargo forwarders play a crucial role in ensuring cost-effective and efficient logistics operations. These companies act as intermediaries between shippers and carriers, optimizing transportation routes, managing customs clearance, and providing end-to-end shipping solutions.
What Do Cargo Forwarders Do?
Cargo forwarders specialize in handling the complexities of shipping, including:
✔ Freight booking and consolidation – They secure space for shipments and consolidate multiple shipments to optimize costs.
✔ Customs clearance – Forwarders handle documentation, compliance, and regulatory requirements to ensure seamless border crossings.
✔ Cargo insurance and risk management – Many forwarders provide insurance options to protect shipments from unforeseen damages.
✔ Warehousing and distribution – Some forwarders offer storage solutions and last-mile delivery services.
| Company | Services | Website |
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Offers comprehensive logistics solutions, including international and domestic freight forwarding, warehousing, and project cargo handling. | royalcargo.com |
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Provides on-demand logistics services with a focus on inter-island transport through Roll-On/Roll-Off (RoRo) vessels, facilitating efficient movement of goods across the archipelago. | transportify.com.ph |
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Specializes in domestic and international forwarding, warehousing, and distribution services, catering to various industries. | f2logistics.com |
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A global shipping leader offering container shipping, intermodal transport, and customs clearance services, with a strong presence in the Philippines. | maersk.com |
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Provides extensive international shipping solutions, leveraging a vast global network to handle diverse freight needs efficiently. | ups.com |
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Known for sustainable shipping practices, offering services such as containerized cargo, refrigerated goods, and project cargo shipments. | evergreen-marine.com |
Source: LogisticsBid
The phased implementation of the cargo handling tariff increase at Manila ports reflects the PPA’s response to prevailing economic conditions and regulatory frameworks. While the direct impact on consumer goods is projected to be minimal, businesses within the logistics and trade sectors should remain vigilant and adjust their operations accordingly to navigate the evolving economic landscape.
