Home » 3PL/4PL, Breaking News » PH truckers shun fuel surcharge, now eyeing general rate hike

Trucks In Light by Bill Longshaw http://www.freedigitalphotos.net/images/view_photog.php?photogid=341

A one-time, big-time trucking rate increase is in the offing in the Philippines due to the continued spike in oil prices — the latest increase adopted just last week — as well as imminent hikes in toll fees later this year.

According to the Confederation of Truckers Association of the Philippines (CTAP), the country’s biggest trucking organization, the rate increase could be imposed as early as next month.

CTAP president Ruperto Bayocot told PortCalls imposing surcharges every now and then is a tedious process that may in the end translate to higher cost on the part of truckers.

“Instead of recovering added cost in the form of a fuel surcharge, we decided we will just come out with a nationwide general rate increase. This will cover previous and upcoming increases in diesel (prices) as well as other added expenses since we are still anticipating more price hikes in the next couple of months not only those involving fuel,” Bayocot said.

The general rate increase, he added, will take into consideration possible oil rationing eyed by government in the event of escalating tension in the Middle East, source of much of the world’s oil.

CTAP has already formed a technical working group to determine the percentage of general rate hike.

“By January 27, the team will submit their recommendation and we will decide by then… the increase could be as early as next month,” Bayocot said.

Fuel accounts for about 40% of truck operators’ cost compared to 33% a few years ago.

Oil companies said the fuel hike last week, which averaged P0.50, may not be the last for the month with conditions in a few countries in the Middle East continuing to deteriorate.

In addition to potentially higher trucking rates, Philippine shippers may have to shoulder higher toll fees this year with operators of Subic-Clark-Tarlac Expressway, Southern Tagalog Arterial Road, and the Manila-Cavite Toll Expressway Project seeking increases in their toll fees.

The operators said the proposed increases — ranging from 6% to 20% — comprise periodic adjustments allowed under the law and are distinct from value-added tax adjusted rates imposed in October 2011.

 

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