ASSET layups are not only prevalent in the sea sector but also on land. Some truck operators are apparently parking more of their trucks due to very low cargo volumes.
“There is really no business here right now, even including food,” Confederation of Truckers Association of the Philippines (CTAP) chair Col. Rodolfo De Ocampo told PortCalls.
“From January to April alone, the cargo we carried compared to a year-ago has gone down by at least 40% and is continuing to decline,” De Ocampo said.
“I think it will take more time before we can see the light at the end of the tunnel,” he added.
He noted the continuing drop in electronic shipments has forced several trucking operators to close shop and invest in other businesses. The sudden spike in oil prices has not helped any.
Other CTAP members are downsizing their workforce and tapping non-traditional markets while waiting for business to pick up.
The association is also considering reviving the P500-million in subsidy from the transport department that should have been given to the industry when fuel prices were at an all-time high.
Since the second half of 2008, the semiconductors and electronics industries have cut their production due to the crisis.