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    NH truckers strike over rates
    By VG Cabuag
    Reporter

    TRUCKERS of Manila North Harbor, the country’s biggest domestic port, declared a holiday on Friday after the port’s main customers, distribution managers and shipping lines “ignored” recent requests for an increase in rates.

    The Alliance of North Harbor Trucking Association (ANHTA), which has about 1,000 members and three other major groups under its umbrella, said continuing to service customers without the necessary adjustments would only bloat their revenue losses.

    Authorities have yet to give estimates of the damage of the strike or say whether it interrupted the movement of cargo, while officials of both PLSA and SCMAP could not be reached for comment.

    Truckers led by Allied Transport Group, Integrated North Harbor Truckers Association  and WGA Trucking Association—collectively known as ANHTA—said they are determined to go on with their trucking holiday until their customers, led by  Supply Chain Management Association of the Philippines (SCMAP) and the Philippine Liner Shipping Association (PLSA), agree to their proposal to increase their rates by about 16 percent.

    “They [SCMAP and PLSA] will allow you to increase your rates but will ask for a retention fee higher than the increase. Instead of benefiting from the increase, we will be spending more to comply with the retention fee or we could not get any cargo from the lines,” an official of the truckers’ group explained.

    The official, who requested not to be named in order not to anger the other parties, said the proposal of SCMAP and PLSA provides only for an 8-percent increase but a retention fee of 10 percent for carriers, a measure that is seen to wipe out the gains made in raising the rates.

    Shipping lines normally ask for a retention fee as payment of the cargo given to truckers since the deal does not involve bidding procedures.

    “Unless they agree to our proposal to increase our rates by 16 percent, we will continue to park our trucks and would not accept any shipments from them,” the group said.

    The official, however, said they are amenable to the PLSA’s and SCMAP’s proposed 8-percent increase, but carriers will have to junk the 10- percent retention fee, and there will be talks of when the remaining 8-percent increase would be implemented.

    Truckers were supposed to raise their rates on April 16 from P5,100 to P5,915 per 20-footer container for a 40-km radius roundtrip.  SCMAP and PLSA, however, did not agree to the truckers’ proposed rates and instead gave a proposal to increase the rates to P5,615 for each 20-footer within the 40-km radius roundtrip.

    From the earlier calculations provided by the carriers, liners will get about P475 as retention fee, while truckers get a P375 share. The remaining P100 will have to be shouldered by the truckers to pay the retention fee from lines.

    According to computations, at the current rate of P5,100 per 20-footer container, truckers will only have some P3,665.11 to spend for operations and the remaining amount will have to go to value-added tax of 12 percent, retention of PLSA of 10 percent, and other costs of about 15 percent.

    When the rate is increased, truckers will have some P4,176.85 to spend, which has been checked by the liner and the distribution managers groups.

    Since last year, truckers have been asking to raise their rates since the customers, mostly the member companies of SCMAP, only allowed them to increase a fraction of the proposed rates in mid- 2007.

    In earlier interviews, SCMAP and PLSA said they are amenable to increases as a result of rising cost of fuel and spare parts. But after months of discussions, the groups have given nothing to the truckers.

    SCMAP, whose members are in the food business and other consumer goods, are wary of increases in logistical costs as this may jack up their prices.

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