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    Truckers to implement
    automatic rate adjustment
     
    By VG Cabuag
    Reporter

    TO protect their member-operators from soaring fuel prices, two of the country’s largest trucker groups intend to put in place an automatic rate- adjustment scheme without consulting their top clients.

    The Confederation of Truckers Association of the Philippines (CTAP) and the Integrated North Harbor Truckers Association (INHTA), with a combined membership of more than 5,000 units, said the scheme will allow them to increase their rates and do away with the tedious process of first getting the nod of their clients before they can raise their own price.

    The truckers said they are putting in place a “trigger mechanism” that will allow them to increase their rates if diesel price climbs to a certain level, using P52 per liter as the base price.

    For CTAP, operators may increase their rates by a certain percentage if the pump price of diesel increases by 30 percent. INHTA will adjust its rates by 10 percent. Both groups are working out the details of the increases.

    The truckers’ groups may also consult their stakeholders.

    In the past, the truckers sought the approval of their clients before increasing their rates. The process took weeks, even months, and normally led to misunderstandings between stakeholders, like shipping lines and distribution-management firms.

    CTAP said it will input the hike in their general rates, and INHTA will collect the increase through a surcharge. “We are implementing the scheme to cope up with the times as we expect prices to still go up despite the P1- per-liter cut implemented [some two weeks ago],” CTAP president Col. Rodolfo de Ocampo said.

    “A proportionate increase in our general rates will be enforced once the price of diesel rises by at least 30 percent since we could no longer subsidize our fuel expenses, which we have been trying to finance the past two years,” De Ocampo added.

    On the other hand, INHTA president Catalino Costales said this is a “survival-relief measure” and a reaction to the rate adjustment implemented by local carriers from Manila to the Visayas and Mindanao last month.

    “We are implementing the surcharge on top of our general rate increase approved by the PLSA [Philippine Liner Shipping Association] and another round of rate increase at the start of next month as we could no longer bear the brunt of the rising fuel cost to our business,” Costales said.

    On July 1, CTAP increased its rates by 30 percent to recover losses related to fuel, labor and maintenance expenses. That was CTAP’s first rate increase in two years.

    From the Manila South Harbor, CTAP members transport 20-foot container vans within Metro Manila for P8,060 from P5,642, and P8,840 for 40-foot container vans from P6,188.

    Beyond Edsa, CTAP is charging P9,090 for 20-footers to Valenzuela and P11,960 for 40-footers to Meycauayan in Bulacan.

    INHTA, on the other hand, charges P6,000 per 20-foot container van within the 40-km radius from Manila. It used to charge P5,610 for the same specifications of load and distance.

    By August 1, INHTA members will be adding P284 in recovery surcharge for 10-footer containers, P405 for 20-footers and P688.50 for 40-footers roundtrip within the 40-km radius. These new surcharges exclude the value-added tax.

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