SBMA to reduce tariff, cargo charges by 5% amid Middle East conflict

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April 15, 2026 | 9:29am

SUBIC BAY FREEPORT, Philippines — The Subic Bay Metropolitan Authority (SBMA) will implement a 5% reduction in tariff, cargo charges and other fees in the Port of Subic as temporary cost-stabilizing measures amid geopolitical tensions in the Middle East.

SBMA Chairman and Administrator Eduardo Jose Aliño said the 5% reduction will cover tariff charges on all commercial vessels, such as harbor fee, berthing and anchorage fees, and harbor cleaning fee, as well as cargo charges like wharfage fee and storage fee.

Aliño added the agency will also voluntarily waive 5% its shares in pilotage fee, hauling services, tugboat services, heavy equipment rental, line handling services, chandling services, water tendering, cargo handling for containerized cargo, and bunkering services.

Further, the SBMA extended free storage for non-containerized cargo for an additional two days, or from 10 days to 12 days for imported cargo; seven to nine days for export cargo; 10 to 12 days for transshipment; and from two to four days for domestic cargo.

The SBMA also suspended the collection of SBMA share from terminal operators and cargo handlers for liquid bulk cargo handling; implementation of 1% admission fee for liquid bulk; and implementation of a 10% increase on cargo handling and miscellaneous charges for containerized or general cargoes.

Aliño said the cost-stabilizing strategies are temporary interventions to help out port industries, especially transport and food sectors, which are affected by the current energy crisis caused by the Middle East conflict.

“These initiatives, including reduced fees and extended free storage, provide a fiscal cushion to reinforce investor confidence and prevent supply chain bottlenecks,” Aliño explained.

He said that importers, suppliers, consignees, vessel owners and consumers, will benefit from these measures through their respective counterparts: terminal operators, cargo handlers, brokers, consolidators, processors, ship agents and shipping lines.

“These will result in a cascading effect throughout the supply chain,” Aliño added.

He said the temporary measures will take effect immediately upon approval by the SBMA Board of Directors and will remain in force “until geopolitical tensions subside, at which point they shall be lifted via formal issuance by the Board.” 

SBMA Senior Deputy Administrator for Port Operations Ronnie Yambao said the tariff reduction and other relief measures would take out some P76 million from SBMA income if they will remain in force for one year.

He said direct tariff reductions will account for approximately P49 million in unrealized earnings, the suspension of policies for fee increases, P25 million; while the extension of free storage periods will take out approximately P2 million in earnings for a year. 

The SBMA reported earlier that agency’s Port Operations Group recorded a P113.7 million income in January this year, compared to the P100.4 million posted in the same period in 2025.

Yambao traced the growth in port revenue to a 52% increase in cargo handling services due a surge in non-containerized or dry bulk cargo, a 59% rise in vessel charges, and a 38% growth in cargo charges.

Aliño said the SBMA will reduce tariffs, cargo charges and other shares in port fees in line with President Marcos’s directive to implement complementary measures to support consumers and sectors affected by hostilities in the Middle East.