Shipping lines seek sufficient flexibility in draft JAO

September 12, 2026

As the government moves to implement the long-delayed Joint Administrative Order (JAO) aimed at improving port efficiency and reducing the country’s high logistics costs, international shipping lines strongly recommended that the final order provide sufficient flexibility to reflect differences in routes, services, cost structures, and commercial arrangements.

This was highlighted by the Association of International Shipping Lines, Inc. (AISL) and the World Shipping Council (WSC) during their presentation to the Bureau of Customs (BOC) on Sept. 10 to discuss the planned JAO. Customs Commissioner Ariel Nepomuceno said the order is set for signing by the Secretary of Finance this month for final implementation.

During the dialogue, AISL and WSC presented the BOC with a clause-by-clause matrix identifying provisions of high priority concern to the international shipping industry. The submission consolidated the concerns, rationale, and proposed positions of AISL and WSC, supported by conditions experienced in actual port, vessel, and container operations.

The discussion covered the treatment of commercial shipping charges, regulatory reporting, empty-container returns, container deposits, security arrangements, timelines, cost allocation, and penalties.

AISL and WSC also recommended clear and proportionate requirements, appropriate confidentiality safeguards, and sufficient flexibility to reflect differences in routes, services, cost structures, and commercial arrangements.

AISL also explained the continuing operational pressures caused by high yard utilization, slow withdrawals of import containers, and controlled acceptance of empty containers.

The group said shipping lines had taken the initiative to deploy six sweeper vessels to evacuate empty containers from Manila and Subic and had shouldered the related vessel and trucking costs.

AISL reiterated its request for a moratorium on the 90-day container dwell-time rule while these constraints persist. AISL and WSC emphasized that the final JAO should recognize the legitimate interests and responsibilities of all supply-chain participants and consider circumstances reasonably within each party’s control.

AISL welcomed the BOC’s openness to dialogue and said it looked forward to continued engagement toward a final measure that is clear, balanced, fair to all stakeholders, and supportive of efficient customs administration and reliable maritime services.
AISL president Patrick Ronas welcomed the participants and thanked the government and industry representatives for contributing their time, expertise, and operational experience to the discussion.

The government delegation included senior BOC officials and Atty. Verlin Entena of the Department of Finance, together with representatives of the WSC, AISL officers, and top executives from AISL member shipping lines.
Representatives of several AISL member lines were in attendance, including Mediterranean Shipping Company (MSC), Maersk, CMA CGM, Ocean Network Express (ONE), Evergreen, Pacific International Lines (PIL), Regional Container Lines (RCL), FESCO, and Kanway Lines.

The BOC delegation was led by Deputy Commissioner Agaton Teodoro Uvero of the Assessment and Operations Coordinating Group, who provided an update on the draft JAO and the succeeding stages of the regulatory process.
WSC Managing Director for Asia Kenneth Chia shared an international perspective on regulatory frameworks and global shipping practices.

WSC currently has 24 container-line members operating approximately 90 percent of the world’s liner vessel services and transporting more than USD4 trillion worth of goods annually.

Source: https://logisticsnews.ph/2026/09/12/shipping-lines-seek-sufficient-flexibility-in-draft-jao/