Higher rice prices due to port congestion? PPA says not really | ABS-CBN

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Higher rice prices due to port congestion? PPA says not really

Higher rice prices due to port congestion? PPA says not really

ABS-CBN News

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MANILA - The Philippine Ports Authority said there is no congestion in the ports it oversees, but shipments of rice have been taking longer than usual to be withdrawn by their consignees leading to "possible artificial increases in rice prices."

The PPA issued the statement on Wednesday after Agriculture Secretary Francisco Tiu-Laurel said port congestion was part of the reason why rice prices were staying high despite the arrival of imported rice in the country.

It said that Manila International Container Terminal and South Harbor are “operating well within capacity and are not experiencing any congestion” with yard utilization currently at 70 percent as of September 2024.

“The average dwell time for containers at PPA-managed ports stands at 5.4 days, which is the lowest in history and just 0.4 days beyond the free storage period of 5 days. This suggests that most cargoes are processed and released within the free storage period,” the PPA said.

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Some rice container shipments however are taking longer to be withdrawn by their consignees, the agency said.

“While other cargoes are generally released within the allotted free storage period, some rice container shipments from some consignees remain at the ports for over 20 days despite having been cleared for release by the Bureau of Customs,” the PPA said.

“This situation has contributed to perceived delays in rice shipments and possible artificial increases in rice prices,” it added.

PPA General Manager Jay Santiago said cargo owners, consignees, brokers, logistics providers, manufacturers, and other supply chain service providers should promptly transfer cleared, ready-for-delivery, and overstaying cargoes from the ports, particularly at the Manila International Container Terminal.

“Our focus remains on supporting a stable supply chain for crucial commodities, and we are dedicated to resolving any issues that arise in this regard,” Santiago said.

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