Philippine Ports Authority Updates Free Storage Policy Requiring Sooner Payment

Overview of the New Storage Policy

The Philippine Ports Authority (PPA) has revised its storage policy, which introduces a new timeline for the payment of storage charges for both loaded and empty containers. This adjustment is significant for all stakeholders in the logistics and shipping sectors, as it changes how storage fees will be calculated.

Details of the Revised Policy

Effective from August 21, 2025, PPA Administrative Order No. 005-2025 mandates that storage charges must now be paid earlier due to a revised assessment of the free storage period (FSP). Importantly, the storage charges themselves remain unchanged.

The new order aims to optimize the availability of port areas, thereby enhancing their efficiency. This is a critical move, especially as cargo volumes are on the rise and operational efficiencies become more vital in today’s fast-paced logistics environment.

Free Storage Period (FSP) Regulations

Under the new guidelines, the lengths of the free storage periods for various categories of cargoes now fall as follows:

• Import Containers: 5 days (120 hours)
• Export Containers: 4 days (96 hours)
• Foreign Transshipment: 15 days (360 hours)
• Inbound Domestic: 2 days (48 hours)
• Outbound Domestic: 2 days (48 hours)
• Shut-Out Domestic: 2 days (48 hours)

Commencement of the Free Storage Period

The revised FSP and assessment of storage charges will begin as follows:

• Import: On the actual day and time the container is discharged from the vessel.
• Export: On the actual day and time the export container enters the port.
• Foreign Transshipment: On the actual day and time of discharge from the vessel.
• Inbound Domestic: On the actual day and time of discharge from the vessel.
• Outbound Domestic: When the outbound container enters the port for loading.
• Shut-out Domestic: When the outbound container enters the port.

New Storage Fee Assessment Framework

Post the expiration of the FSP, the assessment of storage charges will begin based on the hours elapsed. Previously, assessment would start the day after the FSP expiration; now this will change. For instance:

• Import Containers: Charges accrue after the 120-hour FSP expires and will be calculated until the actual exit from the gate.
• Export Containers: Charges will start after the 96-hour FSP expires.
• Foreign Transshipment: The accumulation of charges will commence following the 360-hour FSP expiration.
• Inbound and Outbound Domestic Containers: The same 48-hour framework applies post-FSP.
• Shut-out Domestic: Charges will commence after the 48-hour period.

Implications for Cargo Owners

The expected outcome of these changes is to encourage faster turnover of cargo and optimize port operations. By adjusting the way storage fees are assessed, the PPA aims to align with advancements in technology, particularly in tracking and monitoring cargo discharges and movements. This is a smart move to keep pace with an increasingly data-driven landscape in logistics and shipping.

Real-Time Monitoring and Compliance

To effectively implement these changes, the PPA intends to integrate its Internet-based Port Operations Receipting for Terminals System (iPorts) with the terminal operating systems of terminal operators (TOs), cargo-handling operators (CHO), and port terminal management operators (PTMO). This interoperability will facilitate real-time monitoring and accurate assessment of storage charges.

For those without automated systems, manual input will be required until their systems are developed. The PPA is committed to ensuring that this transition does not hinder smooth operations at ports and terminals.

Scenarios for Clarification

To aid understanding, several examples have been provided in the administrative order annex that elucidate how the FSP commencement and storage fees will be calculated:

• If an import container is discharged on March 10 at 1 PM, the FSP begins at that moment. Storage charges will start after 120 hours or at 1:01 PM on March 15.
• For an export container entering the port on the same day, the same timeline applies but with the FSP ending after 96 hours.

Заключение

The PPA’s moves towards earlier payment for storage charges underlines the importance of adapting to increasing volumes and technological advancements in the logistics sector. For logistics companies and cargo owners, understanding these regulations is essential for operational efficiency.

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