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Rate decrease coming

Rate decrease coming
Domestic shipping lines are set to cut anew their rates by next week as fuel cost continues to slide.

Domestic shipping lines are set to cut anew their rates by next week as fuel cost continues to slide.

Domestic shipping lines are set to cut anew their rates by next week as fuel cost continues to slide. Member-firms of the Philippine Liner Shipping Association (PLSA) said they will cut their fuel surcharge by 10.41 percent effective March 16. These were surcharges imposed by the shipping lines and the truckers at a time when diesel prices were their highest level since the start of 2008.

Based on the plan, PLSA members, led by National Marine Corp., Solid Shipping Lines, Oceanic Lines, Sulpicio Lines, Negros Navigation Co. and Lorenzo Shipping Corp., will all implement the said cut.

The rate cut, if implemented, is already the second time in the last two months that PLSA reduced their fuel surcharge after implementing a 20-percent reduction in the surcharge in February.

According to the PLSA, shippers could expect further reduction in fuel surcharge or even in the general rates if the downward trend in the price of oil continues.

Truckers, on the other hand, have already enforced a 4-percent cut in their fuel surcharge in the delivery of containers for PLSA clients within the 40-kilometer roundtrip radius.

The truckers, led by the Integrated North Harbor Truckers Association (INHTA), however, did not implement the said rate cut to their clients outside Metro Manila and instead subjected them to the automatic rate-adjustment scheme to a review.

Inhta said it will meet with PLSA on March 15 to discuss the formula on how to come up with a proportionate adjustment of provincial trucking rates.
Based on an earlier formula, the rates will be adjusted either upward or downward when fuel prices moved by P5 per liter.

The new rate, meanwhile, is now back to the 2006 level.

For the 10-footer containers, the rate is P3,668 from P3,840; for the 20-foot container the rate is now charged P5,313 from P5,485; and for the 40-foot containers or tandem scheme the rate is now being charged P9,153 from P9,325.

Diesel, the fuel commonly used by trucks, is now between P23 and P25-per-liter level from a high of P58 per liter in July last year.

www.TurkishMaritime.com.tr

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