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Cebu slashes port fees and unveils crisis plan as fuel costs cripple businesses

Local businesses gasp under record fuel prices as Cebu races to stabilize supply chains. Will fee cuts and subsidies be enough to save struggling traders?

The image shows a bar chart depicting the number of container port traffic in the United States....
The image shows a bar chart depicting the number of container port traffic in the United States. The chart is accompanied by text that provides further information about the data.

Cebu slashes port fees and unveils crisis plan as fuel costs cripple businesses

THE Cebu Port Authority (CPA) and the Department of Trade and Industry (DTI) in Cebu Province rolled out cost-cutting and supply chain measures to cushion the impact of rising fuel prices on businesses and consumers.

Discussed during a logistics and supply chain convergence meeting, the interventions aim to ease operational costs, prevent disruptions and ensure the steady flow of essential goods amid the Middle East crisis triggered by the war launched by the United States and Israel against Iran.

To immediately cut port costs, the CPA waived passenger terminal fees, effective 15 days after publication. It also approved a 40 percent discount on berthing and anchorage fees for domestic vessels and suspended roll-on/roll-off wharfage fees for vehicles carrying agricultural products.

Additional relief efforts include suspending terminal fees across all CPA-operated passenger facilities and waiving permit-related charges, such as those for single entry passes, watering, bunkering and other Harbor Control Center approvals. The CPA will also subsidize terminal operations, covering utilities, security, sanitation, medical services and staffing.

To further streamline operations, stakeholders proposed empowering local Bureau of Customs officials. This move would expedite the release of essential goods, reduce reliance on central office approvals and minimize delays to avoid added costs like demurrage.

On the trade front, the DTI presented a phased response plan. Its immediate measures feature tightened price monitoring for fuel and basic goods, tax and fee relief for micro, small and medium enterprises, alongside the activation of crisis help desks and emergency credit support.

For the short to medium term, the agency aims to diversify suppliers and markets, expand loan access, develop a supply chain resilience roadmap and advocate for fiscal support. The DTI also urged relevant agencies to convene within 30 days to align a unified business crisis response framework.

The Cebu Chamber of Commerce and Industry (CCCI) sought immediate government interventions as fuel prices continue to climb.

Francis Dy, CCCI vice president for business advocacy and policy, noted that logistics is among the hardest-hit sectors, as rising fuel costs drive up expenses across the board.

"The logistics sector is heavily impacted because of rising fuel costs and this affects the entire supply chain," Dy told our website Cebu.

He stressed that the private sector's primary concern is tempering the sudden surge in operational expenses to protect businesses.

"Once there's an increase in fuel, it affects everything. So, the request is to temper the abrupt rise in costs," he said.

To avoid further delays and financial burdens, the chamber also called for the faster processing of essential goods at the ports.

"We need to act now. While we hope prices stabilize soon, we have to prepare for the worst," Dy said.

Despite the looming challenges, he remained optimistic that coordinated efforts between the government and the private sector would mitigate the crisis.

"It's better to act than do nothing. Even small measures can help," he said.

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