Home » 3PL/4PL, Breaking News, Exclusives, Ports/Terminals » CTAP members to jack up trucking rates due to higher costs, empty returns problem

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The Confederation of Truckers Association of the Philippines (CTAP) will increase rates as costs have risen due to higher fuel and spare parts expenses and rental fees as well as lost opportunities brought about by difficulties in returning empty containers.

No guide rates will be issued in keeping with the country’s new Competition Law, which prohibits rate-setting among service providers. CTAP approved a resolution in 2015 stopping the practice of issuing of suggested trucking rates.

“We hope you understand that upon the implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law [in] January 2018, our members have been absorbing the spiraling increase of fuel and operational expenses such as: truck spare parts, rentals, lost opportunity for delay in delivery and return of empties, and unchecked/unreasonable arbitrary shipping charges,” CTAP president Mario Yap and chairman Ruperto Bayocot said in a notice to clients dated November 6 approved by the CTAP Board.

The notice did not indicate when the higher rates will take effect although PortCalls understands they already are for some truckers.

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CTAP said the “necessary increase and corresponding adjustment/increase of their (members’) respective truck rates [is] to enable them to continuously provide an exceptional and quality service to their client[s].”

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CTAP last year had already stated trucking costs will increase with the signing last year of TRAIN, which raised the excise tax on diesel used by truckers to P2.50 per liter this year.

Next year, the excise tax on diesel will increase once again, by another P4.50 per liter, and by 2020 by another P6 per liter, although the 2019 increase has been temporarily suspended to address rising inflation rates.

Truckers claim it takes them four to five days to return empty containers within Metro Manila, the delay causing them to decline some requests for deliveries. CTAP last September and October issued resolutions to try to address this issue.

The Department of Transportation, Philippine Ports Authority, and Bureau of Customs last week met to discuss the problem of returning empties, and are set to unveil within the month measures to resolve the problem. – Roumina Pablo

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