Port users have expressed grave concern over congestion at the Manila ports’ reefer yard, where capacity utilization has exceeded 100 percent, warning that if the situation is not addressed immediately, the overcapacity could weigh heavily on overall yard utilization, creating a broader logistics crisis negatively impacting on the country’s supply chain and Filipino consumers.
In a position paper submitted to Bureau of Customs (BOC) Commissioner Ariel F. Nepomuceno, the United Portusers Confederation (UPC) of the Philippines noted that while the overall yard utilization rate remained within a manageable range at 81.99 percent, as reported by the agency on February 2, 2026, the reefer yard utilization rate has surged to 105.98 percent.
The group expressed grave concern that the high reefer yard utilization could weigh heavily on overall yard utilization at the ports if not addressed promptly.
“Operating at over 100% capacity in the reefer segment indicates that the facility has exceeded its designed electrical and spatial limits for temperature-controlled cargo,” stated the letter signed by UPC President Ma. Flordeliza Leong in the letter dated February 3, 2026.
“We must address the reefer saturation immediately to prevent a broader logistics crisis that would negatively impact the supply chain and the Filipino consumer.”
UPC also identified potential risks associated with this level of saturation. Foremost is the threat to cargo integrity, as overcapacity increases the risk of power fluctuations and inadequate monitoring, potentially leading to spoilage of food and pharmaceutical imports.
The group further warned of operational bottlenecks, stressing that a saturated reefer yard inevitably leads to “double-handling,” which slows truck turnaround times and increases logistics costs for port users.
UPC warned that the reefer yard overcapacity is a red flag for imminent overall port congestion. “While the overall yard is not yet ‘congested,’ the reefer segment is a leading indicator. Without immediate intervention, this local bottleneck will spill over into general operations,” UPC said.
To mitigate these risks and protect the interests of the port-using community, UPC proposed that BOC prioritize the processing and release of reefer containers to decongest specialized slots.
The group is also calling for a review of dwell times for “overstaying” reefer units to ensure that the yard is not being used as long-term storage by importers.
UPC likewise pressed for infrastructure transparency, seeking clarification on the contingency measures being implemented to support the 5.98 percent volume currently operating outside standard reefer slots.
Lastly, the group strongly urged the implementation of CMO 13-2019, or the Interim Guidelines on the Return of Empty Containers.
In relation to this, UPC called on the BOC to strongly urge haulers to bring their empty containers to depots such as the EMME Depot Hub in Binakayan, Kawit, Cavite, which can accommodate up to 5,000 TEUs. This should be done at the shipping line’s expense.
“This can be a temporary or permanent solution for haulers and brokers currently reeling from the problems brought about by these unreturned containers,” said UPC.
