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PHL EXPORT EARNINGS UP 72.1% IN APRIL—PSA www.businessmirror.com.ph
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Thursday, June 10, 2021 Vol. 16 No. 239
P. | | 7 DAYS A WEEK
A WORKER fixes the rooftop of a container van converted into a Covid-19 field hospital at Rizal Park in Manila. Expected to be finished this month, the P154-million facility will accommodate mild and moderate patients at its 336-bed capacity. The setting up of field hospitals was first pitched by Red Cross Chairman Sen. Richard Gordon. ROY DOMINGO
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@caiordinario
HE global container crisis and the expected holiday spending in the country’s top markets have apparently prompted international buyers to front-load their purchases of locally made Christmas decors and electronics.
Some economists said, however, that the surge in the country’s trade performance in April was largely due to base effects given the contraction of local and international trade caused by the great lockdown. On Wednesday, the Philippine Statistics Authority (PSA) said the country’s export earnings surged 72.1 percent while import receipts more than doubled or posted a 140.9-percent growth in April 2021. “For exports, yes, it is probable that some firms are taking advantage of Christmas demand assuming that demand prospects will definitely be better come the end of 2021, especially for many of our
trading partners,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion told the BM. “It is highly probable as well that for imports, domestic demand for home appliances is improving as the economy gears up for more easing,” Asuncion added. An expert noted that buyers would usually have their Christmas orders shipped in the third quarter of the year. However, a report from the Financial Times indicated that retailers in the United States, one of the Philippines’s major markets, are scrambling to build up their holiC A
BSP eyeing sale, joint venture for mint in QC B B C @BcuaresmaBM
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ANGKO Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Wednesday bared plans for the BSP Security Plant Complex in Quezon City following the completion of the Central Bank’s new facility in New Clark City. In an interview with CNN Philippines on Wednesday, Diokno said
the current BSP buildings are no longer “relevant to the situation right now” because of its bulky structure and airflow. “The old building in Roxas Boulevard, that will stay,” Diokno said. “The printing plant in Quezon City, close to the Philippine Heart Center and Social Security Building, we are thinking about it. I have
‘STANDARDIZED SHIPPING FEES MAKE LOGISTICS SECTOR COMPETITIVE’ B T J C. P @Tyronepiad
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XPORT industry stakeholders are pushing for the implementation of standardized shipping fees, which have increased amid vessel shortage due to container imbalance. In a joint position paper a copy of which was sent to the BM, several industry representatives stressed that shipping charges based on International Commercial Terminology (Incoterms)—a globally accepted standard for international trade—will allow businesses to have better cost management. As such, shipping lines can also be more competitive as Incoterms levels the playing field in terms of pricing, they added. “We believe this will also impact other charges that are usually outside the purview of shipping lines—and are therefore charged based on market rates—but are offered as added services,” the letter noted, citing warehouse storage and drayage from source to port or port to consignee. The position paper—signed by the Supply Chain Management Association of the Philippines (SCMAP), Export Development Council-Networking Committee on Transport and Logistics, Philippine Exporters Confederation Inc. and Philippine Chamber of Commerce and Industry—was submitted
to the House of Representatives’ Committee on Transportation on June 8. Advocating for standardized shipping costs, the industry representatives threw their support behind the following House Bills (HB): ■ HB 4316, otherwise known as An Act Regulating the Application of Local Charges (at Origin and Destination) Imposed by International Shipping Lines to Comply with Existing Laws on Obligations and Contracts and International Commercial Terminology Establishing Guidelines Therefore; and ■ HB 4462, otherwise known as An Act Mandating the Maritime Industry Authority (Marina) to Promote Fair and Transparent Destination and Other Shipping Charges among Forwarders and Agents of International Shipping Lines. The joint statement explained that the said bills will also impact other players in the logistics sector. “For instance, the standardization of charges would provide relevant authorities with the means to gauge and assess petitions for increase in rates, i.e., cargo handling rate increases in the case of port operators,” they said. The exporters explained then that price increases will be based on quantitative pricing
Higher spot prices to push up power generation charge B L L @llectura
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IGHER spot market prices will push up power generation charge this month, the Manila Electric Company (Meralco) said on Wednesday. “Based on early, initial projections, there may be upward pressure on the generation charge for this month due to observed increase in WESM [Wholesale Electricity Spot Market] prices,” said Meralco spokesman and head of corporate communications Joe Zaldarriaga. The utility firm is set to announce the power rates for the month on June 10. Even before last week’s red alerts, the Luzon grid was already experiencing tight
supply conditions during the May supply month. An average capacity on outage remained at the 3,000 megawatt (MW) level. The Luzon grid was placed on yellow alert on May 5 due to insufficient operating reserves and the secondary cap of P6.245 per kilowatt-hour (kWh) was triggered from May 4 to 7 and then again from May 20 to 22. The secondary price cap is a price-mitigating mechanism designed to limit the persistent high market prices. The triggering of the secondary price cap meant that WESM prices were persistently high during the month. Hence, the increase in WESM prices will tend to push up C A
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PESO EXCHANGE RATES ■ US 47.6900
■ JAPAN 0.4356 ■ UK 67.4909 ■ HK 6.1459 ■ CHINA 7.4504 ■ SINGAPORE 36.0305 ■ AUSTRALIA 36.8930 ■ EU 58.0626 ■ SAUDI ARABIA 12.7170
Source: BSP (June 9, 2021)