PALLETIZING AND STOCKPILING OF NON-CONTAINERIZED CARGOES AS PART OF REGULAR CARGO HANDLING SERVICES

There have been varied interpretations relative to palletizing and
stockpiling or piling services as part of arrastre work being rendered
in the receipt and delivery of cargoes from and to shipper’s or
consignee’s transportation.

To ensure proper interpretation of the terms “Palletizing and
Stockpiling or Piling of Cargoes” as commonly used in cargo handling
services and in the terms and conditions of the tariff, and eliminate
misunderstandings among cargo handling operators, shipping line owners,
shippers and consignees, the following clarifications are hereby issued:

1.         SCOPE: This Memorandum Circular shall
cover arrastre and stevedoring services for non containerized cargoes in
all ports with cargo handling contracts or hold-over permits issued by
the Philippine Ports Authority.

2.         DEFINITION OF TERMS:

2.1    Stockpiling or Piling of Cargoes — This refers to an
activity where non-containerized cargoes are transferred and stored at
PPA owned and designated open storage, shed or warehouse located inside
the port prior to delivery or loading to vessel. This also includes
piling or delivery of cargoes onto consignee’s trucks.

This may also refer to piling of cargoes inside consignee’s
owned warehouse or storage outside of the operational area of the
authorized cargo handling operator. This activity, however, is a special
service which may be imposed a separate fee.

2.2    Palletizing of cargoes as used in item 9.7 of the terms
and conditions of the cargo handling tariff, refers to an activity where
breakbulk cargoes are placed on portable pallets prior to discharging
or in receiving deliveries from shipper or in delivering cargoes onto
consignee’s transportation.

Palletizing of cargoes also refers to an activity where the cargo
handler’s services are engaged to place and strap cargoes on pallets,
off dock, in order to comprise a unit load per pallet.

3.         CLARIFICATIONS:

3.1    Stockpiling or Piling of cargoes as defined in the first
paragraph of item 2.1 hereof is part of arrastre services not subject to
any additional fee. This service is already paid for under the
prescribed arrastre rates in the cargo handling tariff.

3.2    The particular activity of piling cargoes onto
consignee’s truck, being part of the arrastre work to be rendered by the
authorized cargo handler in the port, can not be segregated and should
not be awarded to another contractor to warrant the imposition of
additional fee for said activity.

3.3    Stockpiling or piling of cargoes inside consignee’s
warehouse or storage, being a special service, is subject to additional
fee at the rate agreed upon by the authorized cargo handler and the
cargo owner or as prescribed in the cargo handling tariff.

3.4    Palletizing of cargo as defined in the first paragraph of
item 2.2 hereof is likewise part of the arrastre/stevedoring services,
which is not subject to an additional charge.

Palletizing of cargoes as defined in the second paragraph of item
2.2 is not part of the regular arrastre work which is, therefore,
subject to a separate charge.

4.         REPEALING CLAUSE: All PPA issuances, or parts thereof, which are inconsistent here with are hereby repealed or amended.

5.         EFFECTIVITY: This Circular shall take effect immediately and shall remain in force until revoked or amended.

Adopted: 1 Oct. 2000

(SGD.) JUAN O. PEÑA
General Manager