40% Discount on Shipping Rates for Food Cargo

Department of Transportation Secretary Arthur Tugade ordered shipping lines to offer a 40% discount on regular shipping rates for food shipments and a quota of 12% of the ship’s capacity for such cargoes.

Department Order No. 2020-007 was issued on June 24 and was published in newspapers Friday.

The DOTr said the discounted rates and cargo quota are intended to “help ensure the viability of food production and delivery thereof in line with the government’s mandate to provide food security for the people.”

The 12% quota is to be observed on a per-voyage basis and applies to shipments of agricultural and food products. These are defined as raw or processed commodities meant for human consumption, excluding water, salt and additives.

Another department order, 2020-008, issued the same day and also published Friday, creates a shippers’ protection office to address complaints about the industry’s rates, charges and practices.

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