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Proposed PPA cargo tracker will raise, not lower, costs – brokers

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Proposed PPA cargo tracker will raise, not lower, costs – brokers
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A local group of customs brokers is countering claims from the PPA that its planned container tracking and monitoring system will bring down logistics and shipments costs. | AldenMonzonINQ /PDI

Further, the CBFP official said the insurance coverage will be charged instead of the refundable container deposits, excluding value-added taxes, under the PPA’s P980-million container monitoring and registry system.

Under the current system, shipping lines are required to pay the container deposits while a maintenance fee on a per container basis is collected from importers.Once the TOP-CRMS is implemented, importers and container users will pay the P980 per container service on top of the insurance coverage for each container. Sought for comment, PPA general manager Jay Daniel Santiago told the Inquirer over the weekend that deposits are considered expenses, citing also that there are many complaints concerning delayed return of containers ranging from six months to one year. “If they are not returning the containers, then those [container deposits] are costs,” the PPA official said in a text message. Santiago also said that the P980 per container fee is already inclusive of the insurance, noting as well that the choice is still with importers or brokers who will choose it from a list of accredited insurance companies. The PPA official also addressed concerns that staging areas under the TOP-CRMS will be located in distant locations, an issue that the opposing groups are saying will drive up costs.

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