The Philippine Chamber of Arrastre and Stevedoring Operators (PCASO) has filed for a nationwide cost-recovery rate adjustment before the Philippine Ports Authority (PPA).
The group is eyeing an average 30% recovery adjustment for handling general cargoes and 20% adjustment for containerized cargoes.
PCASO chairman Benjamin Akol told PortCalls the adjustment is necessary following the recent series of cost increases related to labor, fuel and power.
“Our petition, if approved, will not yield us any profit but will only be enough to cover increases in cargo-handling cost which we have been subsidizing the past couple of years… it is only to keep our noses above water,” Akol said.
“It must be emphasized that this is not a general rate increase but a recovery adjustment aimed at easing our financial burden.”
Akol said the association is open to a lower recovery adjustment figure “as long as it is enough to cover a substantial percentage of our additional cost brought about by issues beyond our control.”
In 2005, PPA allowed PCASO to impose a recovery adjustment of 15% from the association’s original petition of 30%.
In 2008, PCASO members implemented a general rate increase.
The PCASO petition is the latest in a string of similar pleas seeking to recover additional costs brought about by higher expenses, mainly fuel.
Recently the Philippine Liner Shipping Association imposed higher bunker surcharge on local and transit cargoes.
Terminal operators International Container Terminal Services, Inc and Asian Terminals, Inc are also seeking higher cargo-handling rates.
