Philippines cross-department finalizes JAO administrative order to break port congestion: expand storage yard and extend customs inspection
In response to the peak Christmas shipping season and supply chain congestion, the Philippine Department of Finance, together with the Bureau of Customs, the Port Authority and other departments, finalized the "Joint Port Administrative Order" (JAO) to regulate foreign ship charges, empty container circulation and yard management. Officials simultaneously launched emergency port dredging measures, promoted the expansion of temporary storage yards in Bulacan and Cavite, extended customs inspections until midnight, and accelerated the clearance of stranded heavy and empty containers.
1. A high-level cross-departmental meeting was held to address the pain points of Manila port congestion
Faced with the upcoming Christmas freight peak and severe supply chain bottlenecks, core Philippine cabinet officials recently held an emergency high-level working meeting to comprehensively discuss and finalize a substantive solution to port congestion. The meeting was chaired by Philippine Department of Finance (DOF) Secretary Frederick Go, and included Cabinet Secretary Benhur Abalos, Department of Trade and Industry (DTI) Secretary Ma. Cristina Roque, Department of Transportation (DOTr) Secretary Vince Dizon, and Bureau of Customs (BOC) Director Ariel Nepomuceno. Nepomuceno) and Philippine Ports Authority (PPA) General Manager Jay Daniel Santiago and other heads of departments were all present.
The Ministry of Finance emphasized that the current concerns of importers, exporters and logistics practitioners about high logistics costs and slow container turnover must be responded to quickly, and various government departments are fully implementing "immediate and practical" diversion policies.
2. Emergency relief measures and extension of customs clearance service hours
In order to release the effective transport capacity of the port area in the short term, the Philippine Customs Bureau and relevant departments have deployed a series of rapid response measures:
- Cleaning up stranded heavy containers : As of the latest statistics, more than 45% (1,683 boxes) of the 3,598 stranded containers waiting to be picked up and departed from the Manila International Container Terminal (MICP) and Manila South Port have been picked up and departed, and the remaining 1,915 boxes have been promised by the importer to be emptied within two weeks.
- Expansion of off-site temporary container yard : The Bureau of Customs is accelerating the establishment of peripheral transit and empty container storage yards in areas surrounding Manila such as Bulacan (approximately 100 hectares) and Cavite to divert pressure from the core port area.
- Customs clearance and inspection window extended to midnight : The operating hours of the Designated Inspection Area (DEA) at major ports in Manila have been adjusted from the original 08:00–17:00 to 08:00 to 24:00 midnight ; The Veterinary Quarantine Station of the Bureau of Animal Industry (BAI) has simultaneously started operating 24 hours a day.
- Upgraded electronic container tracking system (E-TRACC) : An additional 500 sets of electronic locks with GPS modules will be installed, and full-time personnel will be assigned to seal and verify during the extended service period to ensure the safe flow of goods in transit.
3. Institutionalized long-term supervision under the Joint Administrative Order (JAO)
The core outcome of this meeting was the finalization of the Joint Administrative Order (JAO) signed by multiple departments. The decree aims to regulate the transparency of international container management and logistics charges from the institutional level. The main contents include:
- Standardize international shipping company charges : Implement penetrating supervision on surcharges and demurrage/detention fees at the port of departure and port of destination to curb unreasonable charges and price hikes.
- Compulsory empty container transport mechanism : Require international shipping companies to regularly arrange "Sweeper Vessels" to force the empty containers stranded in the yard to be removed from the country.
- Optimize the ground collection and distribution environment : Promote local governments to coordinate the relaxation of truck bans (Truck Bans), optimize weighing and weight limit policies, and clean up unreasonable tolls.
4. List of key measures and policy indicators
| core action dimensions | Specific measures and implementation plans | Policy objectives and expected results |
|---|---|---|
| Customs clearance operation time | The inspection area is extended to 08:00–24:00; animal and plant quarantine operates 24 hours a day | Improve single-day inspection throughput and eliminate customs declaration backlog |
| Yard capacity expansion | Investigate site selection for temporary storage yards outside Bulacan (100 hectares) and Cavite | Divert the storage pressure in Manila and speed up the return of empty containers |
| JAO regulations | DOF/BOC/DTI/DOTr/PPA/BIR/PCC is jointly signed and implemented by multiple departments | Standardize the transparency of shipping company charges and establish standards for empty container transportation |
| Technology and Logistics Tracking | Invested in an additional 500 sets of E-TRACC electronic locks and dispatched additional lock technical support personnel | Ensure the efficiency of transshipment supervision and prevent leakage and leakage during the process |
| Fleet right-of-way collaboration | Collaborate with the Ministry of the Interior and local governments to evaluate and adjust truck bans and transit charges | Smooth trunk line land transportation circulation and reduce non-operation outage costs of trailers |
5. Industry voices and demands of land transportation and logistics practitioners
While the policy is advancing, the Philippine Alliance of Truck Owners and Operators (ACTOO) launched a fleet parade to celebrate its 32nd anniversary on November 9, calling on the government to effectively protect the rights and interests of freight drivers and fleets. ACTOO pointed out that the long-standing "difficulty in returning empty containers", long queues at terminals, rising fuel costs, and inconsistent travel restrictions in various places have severely reduced the survival space of land transportation companies. With the implementation of the JAO decree and the construction of peripheral storage yards, all parties expect that the Philippines' overall maritime and ground freight network will achieve substantial acceleration during the traditional peak shipping season at the end of the year.
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