Harbor Star Shipping Services, Inc.’s (HSSSI) application for a 20% increase in tug assist rates at the Manila International Container Terminal (MICT) has been approved.
HSSSI, in a disclosure to the Philippine Stock Exchange on July 5, said it requested the price adjustment due to higher operating costs.
The approval did not have to pass through the Philippine Ports Authority as domestic shipping rates are deregulated under Republic Act (R.A.) No. 9295, or the Domestic Shipping Act of 2004, HSSSI said in a text message to PortCalls.
But HSSSI had to seek approval from the private organization of international container liners operating in the Philippines, the Association of International Shipping Lines, Inc. (AISL), whose members pay for the tug assist rates.
HSSSI will implement the 20% rate increase in two tranches: the first already took effect last July 1 while the second will take effect on January 1, 2019.
The last rate increase was eight years ago.
MICT, to whom HSSSI exclusively provides tugboat services, is one of the marine services provider’s top revenue-generating ports.
Aside from MICT, other major ports serviced by the company include Bataan, Batangas, Cagayan de Oro, Davao, and Iloilo.
As of last year, HSSSI has established operations at 16 base ports all over the country, providing services to some 10,033 ships. It also operates in Malaysia through subsidiary Peak Flag Sdn Bhd.
The company maintains and manages a fleet of 53 vessels, comprised of 43 domestically and internationally classed tugboats; six barges; one anchor-handling tug supply vessel; one LCT or landing craft transport; one cargo vessel; and one oil spill response vessel. – Roumina Pablo
