Heavy traffic in the metropolis is what’s stopping Philippine truckers from bringing down their service rates despite the continuing decline in fuel prices locally and globally, according to truck organizations.
Trucking rates this year are already much lower than those in 2015, Confederation of Truckers Association of the Philippines (CTAP) vice president for external affairs Pepito Dino told PortCalls in a text message, adding that further reductions as requested by the Department of Trade and Industry (DTI) are impeded by “unreasonable heavy traffic every single day.”
DTI recently appealed to truckers to cut their rates to reflect the significant drop in oil prices. Fuel prices directly account for around 40% of trucking costs, Dino said.
Inland Haulers and Truckers Association of the Philippines (INHTA) president Teodorico Gervacio agreed that dense traffic in the metro hampers the reduction of truck fees. He pointed out that a cut in rates is more likely to happen with cargoes bound for outside of Metro Manila where the per-kilometer basis of rates is “more reasonable.”
Gervacio explained that due to the gridlock in the metro, a truck with a delivery to a warehouse just 10 kilometers away now takes hours more than usual to arrive at its destination, and the frequent stoppages at stoplight areas further increase fuel consumption.
Current rates of both CTAP and INHTA are higher than in the pre-Manila port congestion period due to other factors such as garage rental and higher maintenance costs, the executives said.
In order to comply with the Philippine Competition Act, CTAP last year discontinued the publication of guiding rates to allow members to negotiate freely with their clients on appropriate trucking rates.
INHTA, on the other hand, has an agreement with the Philippine Liner Shipping Association to lower rates by P172 each time oil prices decline by P5, and increase them by P172 for every P5 hike.
Gervacio said INHTA will hold a meeting next week to discuss truck rates. – Roumina Pablo
Image courtesy of nipitphand at FreeDigitalPhotos.net
