Battered by swell. The fishing trawler San Cuvier is battered by the huge swell where it was washed onto rocks at Opape, east of Opotiki, New Zealand, Sunday. Two men on the 60-foot (18-meter) fishing vessel died after it was grounded in heavy seas off the east coast while two other crew members were rescued. --AP

ARRASTRE and Stevedoring operators at the Manila North Harbor are asking for a round of rate increases in its cargo-handling fees to stem losses from the recent string of fuel-price hikes and soaring inflation.

The Philippine Chamber of Arrastre and Stevedoring Service Operators (PCASSO) would like a 35-percent increase in its cargo-handling rates after fuel prices, spare parts, as well as other operational expenses, including labor, have impacted on the cost of their operations.

This development overrides an earlier 15-percent increase, which the group proposed and submitted to the Philippine Ports Authority (PPA), since the percentage increase fell short of covering their operational expenses.

The group said in its proposal another 20 percent is needed to cover the subsidies they have been shouldering the past couple of months and mitigate future effects if conditions should worsen in the future.

“I think it is justified considering that fuel prices continue to soar, plus the fact that labor, spare parts, as well as fares have already increased,” PPA North Harbor port manager Constante Fariñas said.

He said, however, that the PPA would have to conduct public hearings to ensure that current economic conditions really warrant the percentage increase the group is asking for.

“We believe that it has domino effects so we have to make sure that its effects—if ever the request is approved—[against]the public will be mitigated,” Fariñas said.

The PPA will conduct its first hearing on August 11.

In 2005, the ports authority approved a 15-percent across-the-board increase in cargo-handling fees but later on voided its decision on inflation issues raised by the National Economic and Development Authority, which has a seat in the ports authority board.

Cargo-handling operators, led by PCASSO, were asking for a 30-percent rate increase but agreed to the 15 percent offered by PPA.

Late last year, the PPA allowed cargo-handling operators Asian Terminals Inc. (ICTSI) and International Container Terminal Services Inc. to increase cargo-handling fees by 12 percent spread over two years. Asian Terminals is the cargo handler at the Manila South Harbor, while ICTSI operates Manila International Container Terminal (MICT), the country’s largest.

According to the order, the tariff on foreign container-handling services at South Harbor and MICT were increased by 5 percent on January 18 this year.

The second increase of 7 percent will take place in early 2009.

Shippers, meanwhile, led by the Supply Chain Management Association of the Philippines, said the increase would impact their business considering the current economic condition. The increase, according to the group, will have to be shouldered by customers.

Operators want 35% hike in cargo-handling fees

ARRASTRE and Stevedoring operators at the Manila North Harbor are asking for a round of rate increases in its cargo-handling fees to stem losses from the recent string of fuel-price hikes and soaring inflation.

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