Shipping reform bill (International Maritime Competitiveness Act) expected to lower price of goods, DTI says

Trade Undersecretary Mary Jean T. Pacheco said that the proposed law, when passed, would help remove unnecessary charges being imposed by international shipping lines.

The committee handling the bill has already convened a technical working group, Ms. Pacheco told BusinessWorld on the sidelines of a budget hearing last week. Asked for an estimate on how much costs should fall, she said: “There are various charges, but if those are going to be removed, that would decrease logistics costs by so much.” “If the logistics cost comes down, whether import or export, it will definitely (lower prices)… every reduction in the cost will, at the end of the day, lower the prices of goods,” she added.

Under the proposed law, the Maritime Industry Authority will be given the authority to regulate charges imposed by international shipping lines.

“These charges (collected by shipping firms) are what the exporters and importers are saying are highly irregular and excessive. So you could just imagine what will happen if these charges are gone,” she added.

The measure was named a priority by business groups like the American Chamber of Commerce of the Philippines.

“This is one of the most important policy requests by the industries, and we are really hoping that this will be pursued because the President already signed the executive order that removed pass-through fees. Now we also need to address the high international shipping charges,” Ms. Pacheco said.

She said several bills could be consolidated into the final form of the International Maritime Trade Competitiveness Act, including House Bill 10507 filed by Rep. Rufus B. Rodriguez on June 6.