Port congestion may trigger price hike

STOCK PHOTO COURTESY OF PORTCALLS.COM

MANILA – Investors yesterday warned that port congestion may eventually cause the rise in the price of goods in the next eight weeks.

European Chamber of Commerce of the Philippines (ECCP) president Michael Raeuber told reporters yesterday that port congestion may take its toll on the prices of goods, if not immediately addressed.

“We cannot quantify, but if it is not resolved moving forward, it could lead to bigger price increases. Right now, supply is short,” he said.

“There are containers that simply don’t make it to the Philippines. Some shipping lines have suspended operations to the Philippines,” he added.

He added that other supply-chain problems may further aggravate the increase.

“We are of the opinion that today’s serious problems in the supply chains of the Philippines will persist and may even further aggravate within the pre-Christmas season if the root causes of the port congestion and resulting significant cost increases and delays in moving supplies to the Philippines are not recognized and addressed in a coordinated way,” he said.

Rauber was citing a joint statement coming from the ECCP, Canadian Chamber of Commerce of the Philippines, American Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, Semiconductor and Electronics Industries in the Philippines Inc. and truckers associations.

The organizations noted that the situation may be caused by the absence of a more systematic coordination between the national and the local government.

“We are confident that by considering the above remedial measures and attacking the experienced supply problems at the roots, the situation can be brought under control and the truck productivity be restored, resulting in supply meeting demand, increased competition and reduced cost,” Raeuber said.