House probe launched into shipping container rate hike
- The San Juan Daily Star
- 2 hours ago
- 2 min read
By THE STAR STAFF
Rep. José Aponte Hernández announced earlier this week the start of an investigation into the actions of shipping company Tote Puerto Rico to increase the rate per container from $425 to $485, which go into effect on Dec. 8.
“As part of the work of the Committee on Federal and Veterans Affairs, we will begin an investigation into the increase in container handling fees at the Puerto Nuevo dock,” the veteran lawmaker and former House speaker said. “We are seeking to understand the true reasons for this, the second consecutive increase by the company in a year, which raises the prices of products right during the Christmas season.”
The process, which will include public hearings, is expected to begin next week.
“For example, we want to know why the rates continue to increase, contrary to what they told the Federal Maritime Commission (FMC) when they requested authorization for the merger -- what they call a ‘collaborative agreement’ -- between Tote Puerto Rico Terminal and Luis Ayala Colón, claiming there would be savings and efficiencies, two things that haven’t happened; quite the opposite,” Aponte said. “Furthermore, the excuse for this new increase is ‘security,’ yet they supported the elimination of the container scanning system, stating that it would result in savings; again, the opposite has occurred. That will be part of the investigation.”
Last week, the at-large lawmaker denounced Tote Puerto Rico’s rate increase for the use of cargo vehicles, from $69 to $79, and for the transport of merchandise that does not fit in containers (breakbulk cargo) to $108 for every 2,000 pounds, which is an increase of $13.
The latest rate increase comes less than a year after Puerto Nuevo Terminals imposed another substantial increase in multiple container storage areas, including the ‘System Recovery’ fee from $3.50 to $6.50 per container, and implemented a new fee, which it called an ‘Infrastructure Fee,’ at $15 per unit.
Two years ago the company also increased the cost of keeping a container for the first five days by 40% (from $25 to $35), from six to 10 days by 43% ($35 to $50), from 11 to 15 days by 114% ($35 to $75), and from 16 days onwards by 186% ($35 to $100).