SHIPPERS doing business with members of the Confederation of Truckers Association of the Philippines (CTAP) will have to brace for higher trucking rates. The association has announced it will up rates to cushion the impact of higher prices of fuel and spare parts on its members’ businesses.
Recently, the Allied Transport Group, Integrated North Harbor Truckers Association and WGA Truckers Association — collectively known as North Harbor Trucking Association — said they will charge its clients 16% more effective Valentine’s Day.
CTAP president Col Rodolfo De Ocampo told PortCalls its members have been trying to hold their rates for almost two years now but that this has taken its toll on overheads.
Usually accounting for 25% of total expenditures, fuel expenses have increased almost 10% during the period
“Our fuel expense could have been higher (but this was mitigated by) the higher cargo volume that translated to better trucking business last year,” De Ocampo added.
The CTAP Board will meet before month’s end to finalize the percentage increase and the implementing guidelines for such.
The price of diesel, the most commonly used fuel by trucks, grew almost 15% in the last few months from P32 per liter. The price is expected to go up some more as prices of oil in the world market remain volatile due to conflicts in the Middle East.
Last year, truckers finally posted a growth of 10%, the first positive number recorded in almost three years.
According to CTAP, business growth could have been higher if not for the continuing volatility of fuel prices.
The trucking business declined an estimated 20% since 2004 owing to the slow performance of the import and export sector coupled with the implementation of policies such as the No Overloading Law and toll fee increases.
Trucking operators are continuing to clamor for the lifting of the law. They are also asking govern-ment to implement measures to lower fuel prices.
