Bid to cut freight rates nixed

AN UMBRELLA group for Philippine truckers yesterday thumbed down a proposal to slash freight rates by more than 30% to the dismay of exporters that need their logistics service.

The Confederation of Truckers Association of the Phils., Inc. (CTAP) regrouped on Wednesday following media reports that it had planned to lower trucking rates to P8,000 per twenty-foot equivalent unit (TEU) from the current P12,000 TEU.

“Our rates were already reduced by 20% last year. It was decided by the board this afternoon that we will not reduce it anymore,” CTAP Chairman Rodolfo T. De Ocampo said in a telephone interview after the group held its board meeting.

“Sagad na kami, di na kami pwede magbaba sa P8,000 kasi mahihirapan na kami. Hindi na ‘ yun hanapbuhay (The rates have touched bottom. We can’t go down to P8,000 because that would be hard on us. It would no longer be

a living),” CTAP Vice-President for External Affairs Pepito P. Dino added separately via phone.

Weak trade volumes, he noted, have been forcing at least 5,000 trucks to stay grounded daily.

The proponent of lower freight fees was CTAP Director Ruperto S. Bayocot who argued that what could have been a new rate was based on “current market demand.”

“Bunga ‘ yan ng market demand lalo na this month na mahina ang byahe, pababaan ng presyo para lang makuha ‘ yung byahe (That’s a result of market demand especially this month. Demand is weak so truckers are lowering charges just to get the trip),” Mr. Bayocot said in a telephone interview.

But local businesses said truckers have not really adjusted freight rates which went up significantly two years ago when the industry was hurt by the port congestion issue.

“’ Yang mga proposal na ’ yan, zarzuela lang ’ yan ( Those proposals are just for show),” Roberto C. Amores, director at the Philippine Chamber of Commerce and Industry and president of the Philippine Food Processors and Exporters Organization, Inc., said in a separate phone interview. “When they tried to increase rates before, they said it’s because of higher petroleum prices. During and after the port congestion issue, the prices of diesel have fallen by more than half but they’re still charging the same rate. Why don’t they go back to their original argument?”

Exporters and importers, especially smaller players, “all share the same sentiment,” he said.

“It has a huge impact on cost, whether you are an exporter, importer, domestic or SME... We’ve been appealing since last year. We just have to find a way to solve this,” Mr. Amores said. —