Unbundled Sea Transport Cost with DSA Computations

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Unbundled Sea Transport Cost with DSA Computations

• Reconciling DSA and CSPM
• Computations
• Vicente F. Gambito

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CSPM Computations based on

• Cargo handling rates based on 2000 rates for
  Class A
• Revenues and Expenses of DSA member lines for
  1998 were used
• Non-van related Terminal Operating Expenses were
  assumed as cargo handling costs

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On the average, cargo handling (arrastre) on both
ends of a port link amounts to 22 of the sea
transport cost. With Class B the ratio is 25,
with Class C it becomes 42
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Sea Transport Cost(derived)

• Sea freight (includes stevedoring)
• Arrastre origin
• Arrastre- destination
• If arrastre is
• 22
• then total
• Sea Transport Cost is
• 7.084 billion

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Services from Cargo Handlers

• Arrastre 22
• Stevedoring 7
• 29

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• Container vans are considered as part of ships
  gears, hence expenses in maintaining these vans
  may be properly charged to the operation of the
  vessels
• The rest of the terminal expenses are actually
  cargo handling costs amounting to
• 1,190,132

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Total Cargo Handling Component in Sea Transport

• Arrastre 22
• Stevedoring 7
• Terminal Expenses 17
• 46

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MARINA Findings,Cargo Handling Expenses in
Freight, 1998
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• CSPM PPA
• Arrastre 22 12.79
• Stevedoring 7 3.39
• Terminal Expenses 17
• Freight 54 83.82
• Total 100 100.00

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Assumptions Used Source PPA

• Long distance route, Manila-Davao, 829 nm
• Short distance, Cebu-Cagayan, 135 nm
• Medium distance, Manila-Cebu, 392 nm
• Average distance 452 nautical miles
• Freight for Class B cargo used as average
• Break bulk cargo, 30
• Containerized cargo, 70
• Analysis limited to DSA member lines

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Weighted AveragesSource PPA
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Containerized Cargo, 70Source PPA
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Break bulk Cargo, 30 Source PPA
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• CSPM PPA
• B/B Container
• Arrastre 22 24.10 7.95
• Stevedoring 7 5.55 2.47
• Terminal Expenses 17
• Freight 54 70.35 89.58
• Total 100 100.00 100.00

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Cargo Handling for Break BulkManila-Cebu, Class
A, 2002
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When Marina confirms the Terminal Expenses

• CSPM PPA
• B/B Container
• Arrastre 22 24.10 7.95
• Stevedoring 7 5.55 2.47
• Other Expenses 13.33
• Terminal Expenses 17 17 17
• Freight 54 53.35 59.25
• Total 100 100.00 100.00
• Cargo Handling 46 46.65 40.75

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When DSA confirms the Terminal Expenses

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End