Skip to content

Cebu businesses push for port fee cuts amid soaring fuel costs and supply chain chaos

A perfect storm of surging oil prices and blocked shipping routes is crippling Cebu's economy. Can new port discounts and customs reforms save local industries?

The image shows a bar chart depicting the number of container port traffic in the United States....
The image shows a bar chart depicting the number of container port traffic in the United States. The chart is accompanied by text that provides further information about the data.

Cebu businesses push for port fee cuts amid soaring fuel costs and supply chain chaos

Rising fuel prices and global supply chain disruptions have pushed businesses in Cebu Province to demand urgent action. The Cebu Chamber of Commerce and Industry (CCCI) called on authorities to cut port costs and speed up the movement of essential goods. Government agencies have now introduced measures to ease financial pressures on local industries.

The crisis stems from the ongoing Middle East conflict, which has blocked key shipping routes and driven up oil prices worldwide. The conflict in the Middle East escalated after military clashes began on October 7, 2023. By February 28, 2026, tensions between the USA, Israel, and Iran had intensified, leading to the closure of the Strait of Hormuz. This shutdown disrupted global oil supplies, causing fuel prices to surge sharply. Analysts had warned of such consequences since the initial Hamas attack.

In response, the Cebu Port Authority (CPA) and the Department of Trade and Industry (DTI) rolled out cost-cutting steps. The CPA waived passenger terminal fees and offered a 40% discount on berthing and anchorage fees for domestic vessels. It also subsidised terminal operations, covering utilities, security, sanitation, medical services, and staffing to prevent disruptions. Additionally, roll-on/roll-off wharfage fees for vehicles transporting agricultural products were suspended.

The DTI presented a phased response plan to tackle the crisis. Immediate actions include price monitoring and tax relief for micro, small, and medium enterprises (MSMEs). Over the short to medium term, the agency aims to diversify suppliers, expand loan access, and develop a supply chain resilience roadmap.

Stakeholders also proposed giving local Bureau of Customs officials more authority to fast-track the release of essential goods. Francis Dy, CCCI vice president, highlighted the severe impact of rising fuel costs on the logistics sector, which in turn affects the entire supply chain. The chamber urged faster processing at ports to reduce delays and financial strain on businesses. The measures introduced by the CPA and DTI aim to lower operational costs and stabilise supply chains in Cebu. Businesses will benefit from reduced port fees, subsidised services, and streamlined customs procedures. Authorities continue to monitor the situation as global energy markets remain volatile.

Latest