Page 9 - My FlipBook
P. 9
an Freight: Ports as Inhibitors and Enablers of Global Supply Chain Ecosystems EXCLUSIVE STUDY
In the Philippines, this year’s truck ban in neptune EXCLUSIVE STUDY 9
downtown Manila has reduced access to the
port resulting in bottlenecks at the regularly
congested Port of Manila (POM) - which
handles around 65% of the country’s cargo -
where incoming cargo boxes are now being
delayed for an average of 10 days. The impact
reaches far beyond cargo delays and port
congestion - according to the Bureau of
Customs, the truck ban led to a 1.4 percent
drop in Philippine exports - which account for
around 30 per cent of the economy - in
February 2014. The agency also missed its
collection target of 30.2 billion pesos (USD 691
million) for the month by nine per cent. The
European Chamber of Commerce said “Drastic
and unsustainable operating decisions may
have to be taken to further mitigate the
impact of the truck ban and keep cargo
moving.” Sources from the ports said
companies continue to suffer from the delays
in shipments of raw materials and the export
of finished goods with some 7,000 containers
still unclaimed or delayed in Manila ports.
On the other side of the world, the US West
Coast ports (USWC) including Los Angeles
and Oakland are suffering from a triple threat
of labour unrest, over capacity, and possible
diversion of containers through the expanded
Panama Canal from 2016. Severe competition
on the west coast is also pressuring port
revenues - according to the Journal of Com-
merce, “Terminal operators are struggling to
keep the rates they charge to carriers at
compensatory levels as the large shipping
lines and carrier alliances leverage their
cargo volumes for lower rates.”
From a different perspective, a recent Port
Australia report highlighted the threat of
increasing demand for inner-city residential
developments close to areas where port
operators may hope to expand. The inevitable
disruption and disturbance from a modern
24/7 port may lead to conflict and objections
when port and transport operators look to
expand their operations or extend their activities.
MARK MILLAR
In the Philippines, this year’s truck ban in neptune EXCLUSIVE STUDY 9
downtown Manila has reduced access to the
port resulting in bottlenecks at the regularly
congested Port of Manila (POM) - which
handles around 65% of the country’s cargo -
where incoming cargo boxes are now being
delayed for an average of 10 days. The impact
reaches far beyond cargo delays and port
congestion - according to the Bureau of
Customs, the truck ban led to a 1.4 percent
drop in Philippine exports - which account for
around 30 per cent of the economy - in
February 2014. The agency also missed its
collection target of 30.2 billion pesos (USD 691
million) for the month by nine per cent. The
European Chamber of Commerce said “Drastic
and unsustainable operating decisions may
have to be taken to further mitigate the
impact of the truck ban and keep cargo
moving.” Sources from the ports said
companies continue to suffer from the delays
in shipments of raw materials and the export
of finished goods with some 7,000 containers
still unclaimed or delayed in Manila ports.
On the other side of the world, the US West
Coast ports (USWC) including Los Angeles
and Oakland are suffering from a triple threat
of labour unrest, over capacity, and possible
diversion of containers through the expanded
Panama Canal from 2016. Severe competition
on the west coast is also pressuring port
revenues - according to the Journal of Com-
merce, “Terminal operators are struggling to
keep the rates they charge to carriers at
compensatory levels as the large shipping
lines and carrier alliances leverage their
cargo volumes for lower rates.”
From a different perspective, a recent Port
Australia report highlighted the threat of
increasing demand for inner-city residential
developments close to areas where port
operators may hope to expand. The inevitable
disruption and disturbance from a modern
24/7 port may lead to conflict and objections
when port and transport operators look to
expand their operations or extend their activities.
MARK MILLAR
