Cebu biz groups raise concerns over proposed cargo tariff hike

Local

CEBU’S major business groups are raising concerns over a proposed increase in domestic port and cargo-handling tariffs, warning that higher logistics costs could ripple through supply chains and eventually push up consumer prices.

The Cebu Chamber of Commerce and Industry (CCCI) and Mandaue Chamber of Commerce and Industry (MCCI) both called for a measured approach to the proposed adjustment sought by the Port of Cebu Association of Cargo Handling Operators Inc. (PCACHOI).

To recall, PCACHOI has petitioned for a 25 percent increase in port and cargo-handling fees.

For its part, CCCI acknowledged that cargo-handling operators face rising labor, fuel, equipment and maintenance costs, which must be considered to maintain safe and reliable port services.

While the Chamber expressed support for the increase, it proposed a staggered implementation to give businesses more time to adjust.

CCCI, in its position paper, proposed the first tranche, at 10 percent, to be implemented in the fourth quarter of 2026. The remaining 15 percent in the first quarter of 2027.

The group pointed out that cargo-handling charges are part of the overall cost of moving goods, meaning a sharp increase could add to the burden of micro, small and medium enterprises (MSMEs).

“A one-time 25 percent adjustment could put additional pressure on MSMEs and, eventually, on consumers,” CCCI explained.

That’s why CCCI urged the Cebu Port Authority (CPA) and PCACHOI to provide advance notice before each tranche, consider transitional measures for MSMEs and cargo already booked.

They also requested port officials to disclose the basis for the tariff adjustment and corresponding improvements in port services.

Likewise, the Chamber called for consultations with affected stakeholders before implementing the second tranche.

MCCI, meanwhile, urged authorities to carefully examine whether a 25 percent increase is necessary and timely, citing already difficult business conditions.

Domestic cargo handling plays a crucial role in an archipelagic economy such as the Philippines, facilitating inter-island freight and the distribution of goods nationwide, said MCCI President Barbara “Bambi” Gothong-Tan.

But a substantial tariff increase could further squeeze businesses already dealing with weaker demand, rising wages, elevated fuel prices and other operating costs, she said.

“An additional increase in logistics costs could put further pressure on businesses, particularly those in Mandaue and other highly industrialized and logistics-dependent areas,” Gothong-Tan said. She also warned that the impact would not stop with port users.

Higher logistics costs could cascade from manufacturers and traders to distributors and retailers, potentially translating into higher prices for consumers and weaker purchasing power.

The timing deserves particular scrutiny given the country's economic environment, added Gothong-Tan.

“At this stage, we would encourage the Cebu Ports Authority and other stakeholders to assess whether the proposed adjustment is truly timely and necessary, and to consider its potential impact on business competitiveness, inflation, and the cost of doing business in Cebu,” she said.

MCCI said it would first review the proposal's justification, cost structure and projected impact before taking a definitive position.

Both chambers emphasized the need to balance the financial sustainability of cargo-handling operations with Cebu’s competitiveness and the capacity of businesses and consumers to absorb additional costs.(RBE)