It’s the time of the year when overseas Filipino workers (OFWs) carefully pack their balikbayan boxes with goods for their loved ones in the Philippines. But ahead of the holiday padala rush, a group of freight forwarders is urging our kababayans in the UAE to send their packages earlier than usual as the pandemic continues to bring delays in global shipments.
Philippine Business Council League of Freight Forwarders (PBC-LFF) Chairman Allan Michael Bautista stated that cargo companies have borne the brunt of rising costs of shipments due to the shortage of container vessels where balikbayan boxes are loaded.
“As freight forwarders are prepping for increase in acceptance of the annual holiday padala of overseas Filipinos, customers are reminded to send their boxes extra early to ensure that their packages are delivered in time for Christmas,” said Bautista in an official statement.
“For the holiday season, the LFF has decided to adjust their holiday cut-offs earlier to manage the expectations of their customers and further ensure delivery of their holiday gifts for their loved ones in the Philippines by December. The shipment of boxes from UAE to Manila Port is a little longer than usual and we are anticipating further additional days on the lead time during this peak season as our customers start sending their holiday padala,” he added.
Price, lead time adjustments expected
Since 2020, the logistics industry has been facing several issues including port congestions, shortage of container vessels, and the recent Suez Canal blockage.
Due to these circumstances, OFWs should expect adjustments on the price they have to pay to send their balikbayan boxes. In addition, lead times – or the time it takes for their balikbayan boxes to reach home, may take longer this year.
OFWs are also advised to coordinate with their preferred cargo providers for them to find out their respective cut-offs especially for areas outside Manila, particularly the Visayas and Mindanao regions.
“We encourage our kababayans to start checking with their preferred cargo providers the holiday cut-off schedules and send their balikbayan boxes extra early to avoid any delays in the deliveries of their boxes in the Philippines,” said Bautista.
Global shipment woes
After OFWs send their ‘balikbayan box’ to their preferred cargo company, logistics companies coordinate with shipping companies to send the boxes in containers via sea cargo. However, a global scarcity of these containers has greatly impacted the current service levels of these cargo companies.
As a result, shipment costs have skyrocketed three to five times, from $300 to $400 (AED 1100-1470)in 2019, prices have doubled to $600 – $800 (AED 2200-2940) in 2020. This year, the peak season costs reached $1,700 (AED 6250) per container.
Apart from the rising shipment costs, sea cargo coming from the UAE aren’t sent straight to the Philippines. They go through several transshipment ports in Asia such as Singapore, Malaysia, Taiwan, or Hong Kong.
The Suez Canal incident in March likewise affected the schedule of shipments as this is the only path that ships could take from the Philippines to transshipment ports, until it reaches the UAE and vice versa.
The combination of these circumstances meant that some of the shipments might experience around two to three weeks of delay, as per the experience of cargo companies.
Effects of community quarantine
The PBC LFF Chairman reminds that the challenges posed by the COVID-19 pandemic persists globally, and the Philippines is not immune.
Back home, the community quarantine classifications, which constantly change almost every two weeks, inevitably affect the delivery time of balikbayan boxes.
“In our experience, some Filipinos will wait until the last minute, when they had the option to send it much earlier. We hope that we could break that tradition to help anticipate delays that may be brought about by community quarantines. Those are uncontrollable circumstances where freight forwarders in the Philippines are also affected. As recourse, we encourage and push to tell our customers to send as early as possible,” said Bautista.
Bautista also advises OFWs to only opt for legitimate freight forwarders to assure that their boxes reach their families in the Philippines.
“We also remind our kababayans to ensure that they send through legitimate freight forwarders only as most fly-by-night cargo companies take advantage of this holiday season. The members of the PBC League of Freight Forwarders ensures their kababayans that they remain committed in ensuring that they provide the best service to their valued customers as they deliver the hard-earned holiday gifts they send to their loved ones in the Philippines through their balikbayan boxes,” said Bautista.
Agahan ang pagpapadala!
Source: Pinoy News Udpates PH
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