A TRUCKING group whose members serves the Manila North Harbor are still convincing its customers to pay higher-transport fees, which would help them survive surging- crude prices.

In a letter to the Supply Chain Management Association of the Philippines (SCMAP), the Philippine Liner Shipping Association  (PLSA)requested a 16-percent increase on current transport rates of P5,100. If adopted, trucking companies will be able to levy P5,917.77 for every twenty-foot metal container it transports within a twenty-kilometer radius.

Although truckers were allowed to hike rates in May 2006, they were unable to get the proposed increase they earlier requested. Nearly two years ago, trucking companies sought an increase of P5,600 for every twenty-foot container it carried.

“This [the 16-percent increase] is a survival-relief rate. Further unnecessary delay in its approval will consequently result in inefficien- cies or in a worst case scenario—a “dead-horse” trucking industry,” the truckers’ letter said.

Trucking groups seeking the rate hike include the Integrated North Harbor Truckers Association, WGA Truckers Association, and Allied Trucking Group Philippines.

“The P5,100 rate is barely above the break-even point, however, having been imposed, the truckers had to juggle their best efforts just to stay above the water line up to year-end of 2006,” the letter said. “Some operators started… selling their trucks to stay alive. But the most tragic cases are those that stopped and closed their businesses inherited from their ancestors.”

According to estimates, at P5,100 for every 20-footer box, truckers will only have some P3,665.11 left to spend on its operations since the remaining amount will have to be allotted for the value-added tax of 12-percent retention fees of PLSA of 10 percent, and other costs reaching 15 percent.

With the newly-proposed rate hike, truckers will have some P4,176.85 to spend, according to its computations.

Since last year, trucking companies have been requesting higher rates since its customers, mostly member-companies of SCMAP, only allowed them to increase a fraction of what truckers have proposed.

The SCMAP, whose members are in the food business, are always wary of hiking logistical costs since these may jack up the prices of their goods.

Meanwhile, the government has asked truckers to lower its rates by 5 percent to help exporters cope with the strengthening peso—which makes goods sold abroad more expensive and less competitive. The request did not prosper as truckers declined to lower its rates.

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THE Philippine government said existing freight forwarders have only until January next year to comply with new paid-up capital requirements, a measure to reduce fly-by-night package delivery companies which defraud customers.

A TRUCKING group whose members serves the Manila North Harbor are still convincing its customers to pay higher-transport fees, which would help them survive surging- crude prices.

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