IN exchange for agreeing to a trucking rate hike, supply chain managers will seek value-added services, mainly in the area of safety, from trucking operators.
“It should be a give-and-take situation. After we agreed to the increase, we will seek extra value-added services on the part of the truckers through better road safety standards,” explained Supply Chain Management Association of the Philippines (SCMAP) transport committee head Francis Llanes of Pilipinas Shell, at the sidelines of the recent induction of the newly elected SCMAP officers.
Bargaining tool
“The value-added service on safety such as better tires, lights, newer truck units, will be our bargaining tool for the truckers to reduce costs and delays on our part brought about by better road safety standards,” Llanes said.
He added the move is one of the major advocacies the new SCMAP board will pursue with its partners to help simplify the country’s supply chain.
The SCMAP Board will soon meet to discuss with its members the proposed trucking rate hike.
It will also formalize its petition for the extra value-added services it is seeking from truckers.
Last Friday, the Allied Transport Group, WGA Trucking Association and the Integrated North Harbor Truckers Association (INHTA), collectively known as the North Harbor Trucking Association, implemented a 16% rate increase even without the resolution of the new SCMAP Board.
The hike is meant to cushion effects of the volatile fuel prices on trucking operations.
The new trucking rate is now P5,917.77 per twenty-foot container for a 40-km round trip to and from Metro Manila.
In May 2006, INHTA, SCMAP and the Philippine Liner Shipping Association have agreed to implement an 18% increase in trucking rates that is 12% lower than the 30% increase petitioned by the group.
