Cebu business groups raise concerns over proposed cargo tariff hike

CEBU CITY, Philippines — As fuel and transportation costs rise, port operators here are seeking higher handling tariffs, prompting business groups to warn of possible ripple effects on the cost of goods and services.

The Port of Cebu Association of Cargo Handling Operators Inc. (PCACHOI) has petitioned for a 25-percent increase in domestic port and cargo-handling fees.

But the Chambers in Cebu City and Mandaue City cautioned against its hasty implementation.

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Cebu Chamber of Commerce & Industry (CCCI) supports an increase in cargo-handling tariffs, acknowledging that operators face higher labor, fuel, equipment and maintenance costs necessary to sustain safe and reliable port services.

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But CCCI, the largest business-oriented organization outside Metro Manila, proposed a staggered implementation instead of a one-time 25 percent increase to give businesses more time to prepare.

‘Additonal pressure’

Cargo-handling fees are part of the overall cost of moving goods, meaning a sharp increase could put additional pressure on micro, small and medium enterprises (MSMEs) and, eventually, consumers, CCCI explained.

“A one-time 25 percent adjustment could put additional pressure on MSMEs and, eventually, on consumers,” it said.

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Under CCCI’s proposal, the first 10-percent increase would take effect in the fourth quarter of 2026.

Meanwhile, the remaining 15 percent would be implemented in the first quarter of 2027.

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The Chambers also urged the Cebu Port Authority (CPA) and PCACHOI to provide businesses with advance notice before each tranche takes effect and consider transitional measures for MSMEs and cargoes that have already been booked.

It also called for greater transparency on the basis for the proposed adjustment, including the corresponding improvements in port services.

Mandaue Chamber of Commerce and Industry (MCCI), meanwhile, urged authorities to carefully examine whether the proposed 25 percent increase is necessary and timely, citing the difficult operating environment facing businesses.

Barbara “Bambi” Gothong-Tan, MCCI president, said domestic cargo handling is particularly important to an archipelagic economy such as the Philippines because it facilitates inter-island freight and the distribution of goods nationwide.

But she said a substantial increase in cargo-handling costs could further strain businesses already dealing with weaker demand, rising wages, elevated fuel prices and other operating expenses.

“An additional increase in logistics costs could put further pressure on businesses, particularly those in Mandaue and other highly industrialized and logistics-dependent areas,” Gothong-Tan said.

Beyond port users

The impact, she added, could extend beyond companies that directly use port services.

Higher logistics costs could be passed along the supply chain, from manufacturers and traders to distributors and retailers, potentially resulting in higher consumer prices and weaker purchasing power.

Gothong-Tan also said the timing of the proposed increase warrants careful consideration given the country’s current economic conditions.

“At this stage, we would encourage the [CPA] and other stakeholders to assess whether the proposed adjustment is truly timely and necessary, and to consider its potential impact on business competitiveness, inflation, and the cost of doing business in Cebu,” she said.

MCCI said it would review the proposal’s justification, cost structure and projected impact before taking a definitive position.

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On the other hand, the CPA has already conducted several public consultations on the proposal to increase cargo-handling fees, allowing affected stakeholders and port users to raise concerns and provide feedback on the proposed adjustment. /cb