PHILIPPINE COPYRIGHT 2020 by ProQuest Publishing, Inc www.portcalls.com PHILIPPINE COPYRIGHT 2020 by ProQuest Publishing, Inc www.portcalls.comwww.portcalls.com Looking for the Turn to pages 6-11 BEST CONSOLIDATORS The Philippines’ only shippingshipping and transporttransport guideguide ISSN 0118-1483 WEDNESDAY September 2, 2020 VOL. 25 NO. 71 P30.00 ISSNISSN 0118-14830118-1483 WEDNESDAYWEDNESDAY SeptemberSeptember 2,2, 20202020 VOL.VOL. 25 NO.71NO. 71 P30.00P30.00 Forex rate asas ofof Friday,Friday, 2828 AugustAugust 2020 2020 — — P48.485:US$1 DTI lists products with shipping discount THEwith Department shipping of Trade and Industry discountof their vessel’s cargo capacity per voy- THE Department of Trade and Industry of their vessel’s cargo capacity per voy- (DTI) has released the list of agricultural age for the exclusive accommodation of (DTI) has released the list of agricultural age for the exclusive accommodation of and food products that qualify for discount agricultural and food products, and to and food products that qualify for discount agricultural and food products, and to and cargo space allocation from domestic extend a discount of no less than 40% of and cargo space allocation from domestic extend a discount of no less than 40% of shipping lines. the carriers’ published shipping rates to shipping lines. the carriers’ published shipping rates to DTI Advisory No. 20-02, dated these cargoes. DTI Advisory No. 20-02, dated these cargoes. August 24 and with immediate effect, MC DS-2020-01 provides implement- August 24 and with immediate effect, MC DS-2020-01 provides implement- enumerates the raw and processed pro- ing procedures of DO 2020-07 and took enumerates the raw and processed pro- ing procedures of DO 2020-07 and took duce that can avail of privileges under effect on August 27. It also states that duce that can avail of privileges under effect on August 27. It also states that Department of Transportation (DOTr) qualified agricultural and food products Department of Transportation (DOTr) qualified agricultural and food products Department Order (DO) No. 2020-07 for the cargo space allocation and discount Department Order (DO) No. 2020-07 for the cargo space allocation and discount and Maritime Industry Authority (MA- will be those that may be classified by the and Maritime Industry Authority (MA- will be those that may be classified by the RINA) Memorandum Circular (MC) DTI from time to time. RINA) Memorandum Circular (MC) DTI from time to time. DS-2020-01. Under DTI Advisory 20-02, raw foods DS-2020-01. Under DTI Advisory 20-02, raw foods DO 2020-007 instructs all domestic that qualify include pork, chicken, vegeta- DO 2020-007 instructs all domestic that qualify include pork, chicken, vegeta- shipping lines to allocate at least 12% Turn to page 12 shipping lines to allocate at least 12% Turn to page 12 NOW AVAILABLE 2020 Edition 20202020 Edition Edition PortCalls Cargo PortCallsPortCalls Cargo Cargo TransportTransport Directory Directory To reserve a copy, call 8551-1775, 8551-3871 ToTo reserve reserve aa copy, call call 8551-1775, 8551-1775, 8551-3871 8551-3871 or email [email protected]. oror email [email protected]@portcalls.com. 2 • PortCalls INDUSTRYNEWS WEDNESDAY September 2, 2020 Tighter quarantine worsens PH manufacturing in Aug THE Philippine manufacturing sector demand fell notably due to the new re- tions were generally relaxed. month since August 2019. headed into a steeper downturn in August strictions,” IHS Markit economist David The reduction in manufacturing pro- Ongoing community quarantines, as 2020 as quarantine measures in a number Owen said. duction was markedly quicker than that well as fresh COVID-19 measures, led to of areas were tightened. Output levels contracted for the sec- seen in July, but the overall strength of the further difficulties in acquiring inputs on The Purchasing Managers’ Index fell ond successive month, while manufactur- downturn was much softer than seen in time, IHS Markit noted. for the second month running to 47.3 ing new orders have remained in negative the period between March and May when Input prices, meanwhile, rose at the in August from 48.4 in July to signal a territory since the coronavirus disease most of the country faced strict quarantine sharpest pace since February 2019, mainly stronger deterioration in operating con- 2019 (COVID-19) pandemic escalated rules, IHS Markit said. driven by supplier shortages and increased ditions, according to the latest survey of in the Philippines in March. Moreover, job losses remained appar- import costs. Some manufacturers passed IHS Markit. The imposition of stronger quarantine ent as firms continued to trim capacity at higher costs onto consumers through a rise The August index, however, remained measures in Metro Manila and some of a steep rate to adapt to the new economic in output charges. well above its record low of 31.6 in April, the surrounding provinces had an adverse environment. However, the overall mark-up was the London-based industry information impact on demand in August, IHS Markit “Stocks were also reduced, extending modest, due to some firms continuing to and analytics service provider noted. noted. the run of depletion to six months. Busi- offer discounts in order to stimulate sales. A reading above 50 indicates an New work inflows contracted sharp- nesses remain less confident than normal IHS Markit said the outlook for the expansion of the manufacturing sector ly as movement was restricted, while of an increase in output over the coming manufacturing sector remained subdued compared to the previous month; below some sectors were forced to operate year, reflecting the uncertainty of the path in August and was broadly in line with 50 represents a contraction, while 50 at reduced capacity. Notably, the fall of the pandemic and lockdown measures,” that seen in July. indicates no change. in new orders was the fastest seen in Owen said. More businesses predicted that output “The downturn was linked to a sharp three months. Delivery times at Filipino manufactur- will improve in the year ahead than those drop in new orders and a subsequently Export sales also declined, but only at ing firms lengthened again in the latest expecting a decline, but confidence was steep reduction in output, as client a modest rate as global COVID-19 restric- survey period, as has been the case in each much weaker than the series trend. PH domestic trade plunges to record low in second quarter PHILIPPINE domestic trade plummeted jected a 70% drop in cargo volumes as the and transactions not classified elsewhere with P16.66 billion (25.6%) and Eastern to a historic quarterly and annual drop country implemented community quar- in the Philippine Standard Commodity Visayas with P7.79 billion (12%). in the second quarter as strict quarantine antines from mid-March to prevent the Classification, and manufactured goods Western Visayas also posted the high- measures severely curtailed business and further spread of the coronavirus disease. with 0.33 million tons (18.2%) and 0.29 est inflow value of all the regions with consumption activities during the period. While movement of cargoes should have million tons (16.3%), respectively. P14.94 billion or 22.9% share. It was fol- Domestic trade declined 77.8% in been unhampered, other restrictions had By region, Northern Mindanao still lowed by Central Visayas and Caraga with volume and 69.1% in value in the second affected the operations of cargo owners recorded the highest quantity of traded inflow values of P11.11 billion (17.1%) quarter of 2020 compared to a year ago, and shippers and other service provid- commodities of 0.66 million tons or 36.5% and P9.67 billion (14.9%), respectively. according to data from the Philippine ers. Airfreight was also affected as flights share to total in the second quarter of Cagayan Valley, on the other hand, had Statistics Authority (PSA). were suspended due to travel restrictions. 2020. Western Visayas ranked second the lowest inflow value of P2.55 million. The second-quarter declines were the Domestic commercial flights started to with a quantity of 0.34 million tons The top three regions with favorable highest recorded quarterly and annual resume gradually only from June. (18.8%) and Bicol Region placed third trade balances in the second quarter of drop since 1994, which was the earliest According to the Philippine Ports with 0.27 million tons (15.2%). 2020 were Northern Mindanao, P13.51 available comparative data from PSA’s Authority, cargoes handled at ports under Food and live animals also led in billion; Western Visayas, P4.04 billion; website. its jurisdiction reached 48.552 million terms of value with P21.86 billion or and Eastern Visayas, P2.07 billion. The volume of domestic trade dropped metric tons (mt), 31% down from the 33.6% share to total. It was followed by National Capital Region, on the other to 1.80 million tons from 8.11 million tons 70.336 million mt handled in the same machinery and transport equipment, and hand, had the highest unfavorable trade in the same quarter in 2019. In terms of period last year. manufactured goods with P14.24 billion balance value of P8.33 billion. value, domestic trade decreased to P65.12 Food and live animals remained the (21.9%) and P12.44 billion (19.1%). Almost all or 99.8% of the com- billion in the second quarter of the year top commodity in terms of quantity with Among the regions, Western Visayas modities remain traded through water from P211.01 billion a year ago. 0.65 million tons or a share of 36.4% to ranked first with P18.98 billion or 29.2% (coastwise) while the remaining were Domestic shipping lines earlier pro- total.