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ATI takes on a more aggressive move on overstaying containers, trims down volume by 61%

PSE Circular for Brokers No. 1291-98 • Philippine Stock Exchange • Circulars for Brokers • Jun 10, 1998

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June 10, 1998 PSE CIRCULAR FOR BROKERS NO. 1291-98 ATI takes on a more aggressive move on overstaying containers, trims down volume by 61% IN AN EFFORT to fully maximize the use of its operational areas and assist shipping lines, Asian Terminals Incorporated (ATI), the sole terminal operator of South Harbor, has cut down the volume of overstaying containers by at least 61% from 987 units in January to 280 in May. "ATI, with the support from the Bureau of Customs (BOC), has effectively reduced the volume of overstaying containers by intensifying and adopting a more aggressive approach," says Atty. Maximino Cruz, ATI's agency and customer relations consultant. Cruz disclosed that ATI closely coordinates and actively assists the Bureau in disposing the goods by initiating moves that will make it easier for BOC to auction them. Aside from proposing innovative measures to speed up disposition of cargoes, ATI regularly furnishes BOC with a complete list of overstaying containers. It also provides BOC with important information which are available within the ATI system. "This will help facilitate the publication of cargoes and immediately sell them in auction," Atty. Cruz said. "Most of the proceeds from the auction sale of overstaying shipments go the government." Apart from assisting BOC, ATI also ensures that the port equipment are readily available for container inspection and stripping at all times and coordinates with shipping lines to dispose of cargoes considered condemned. Not only has the volume of overstaying containers been significantly reduced, says Cruz, but the moves done by ATI has allowed the firm to maximize its use of available operational areas by creating additional spaces and allowing faster turnaround of cargoes. For shipping lines, overstaying containers or those which have been staying in the port for at least 30 days, incur opportunity cost as long as they are not emptied of their cargoes. This means they would not be able to make use or reposition their containers. Consequently, the occurrence of overstaying containers has also deprived the government of the revenue originally due it, since the cargoes inside these containers have either deteriorated in condition or have totally lost its economic value.

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