The Cebu Chamber of Commerce and Industry (CCCI) proposed implementing the increase in two tranches—10 percent in the fourth quarter of 2026 and 15 percent in the first quarter of 2027—to cushion the impact on micro, small and medium enterprises (MSMEs) and the broader Cebu business community.
The Mandaue Chamber of Commerce and Industry (MCCI), however, cautioned against any increase at a time when businesses were facing weaker market demand, higher operating costs, rising wages, elevated fuel prices and risks from the coming El Niño.
PCACHOI, an association of cargo handlers, filed a petition with the Cebu Ports Authority (CPA) in August seeking a 25-percent increase in existing cargo-handling tariffs for domestic cargo at all ports in Cebu. The association cited rising fuel prices and operating expenses, including labor and equipment costs, as reasons for the proposed increase.
Staggered
The CCCI supported PCACHOI’s request, saying rising labor, fuel, equipment and maintenance costs must be considered to ensure safe, efficient and reliable port services.
But it said the adjustment should be implemented in two tranches because a one-time 25-percent increase could put additional pressure on MSMEs and, eventually, their customers. Staggered implementation would help cushion the impact on MSMEs and other port users while giving businesses more time to adjust.
The CCCI urged the CPA and PCACHOI to publish the approved tariff schedule and give port users adequate notice before each tranche takes effect.
It also sought transitional measures for MSMEs, including a grace period for cargo already booked or contracted, as well as greater transparency on the basis for the increase and the expected improvements in service, safety and efficiency.
The CCCI called for monitoring the impact of the first tranche and consulting affected stakeholders before implementing the second. It also sought clarification on how the adjusted tariffs would affect other CPA charges, particularly those applicable to private ports, and urged continued consultation throughout the implementation.
The CCCI has more than 800 member companies from trade, industry, services, information and communications technology (ICT), and sectoral business associations, according to its website.
Ill-timed
The MCCI, which has more than 500 member companies, said this was not the time to increase cargo-handling fees. It urged the CPA to consider the potential impact on business competitiveness, inflation and the cost of doing business in Cebu.
It said the timing of a substantial tariff increase deserved careful scrutiny amid weak economic growth, with the Philippine economy expanding by only 2.3 percent in the second quarter of 2026.
“We don’t support any type of increase considering the fuel and oil crisis, the wage hike increase, plus the upcoming super El Niño. These are keeping businesses down ... and any type of additional set of expenses would be quite heavy,” said MCCI president Barbara “Bambi” Gothong-Tan.
The MCCI pointed out that higher logistics costs could raise the prices of goods and erode consumers’ purchasing power, given the essential role of logistics in the supply chain.
Added burden
The concern, it added, was not simply the additional cost to businesses but the potential ripple effect throughout the supply chain—from manufacturers and traders to distributors, retailers and, ultimately, consumers.
“We believe it is important to first review the proposal in detail, including its justification, the cost structure, and its projected impact on businesses and consumers,” the MCCI said.
“Any proposed increase in cargo handling tariffs—particularly one as significant as 25 percent—needs to be carefully considered in terms of its timing and broader economic impact.” —Ed: Corrie S. Narisma
Contributor
