Tuesday, July 8, 2014

Truck ban to cause price hikes in 3 months, biz group warns

MANILA, Philippines–Consumers and businesses could feel within three months the full repercussions of the truck ban in Manila and the implementation of an order raising fines for colorum or unauthorized trucks, the head of the Confederation of Truckers Association of the Philippines (CTAP) said on Monday.

CTAP president Ruperto Bayocot said the two measures would further raise the prices of consumer goods, make it harder for importers to secure their raw materials, and increase the rates of both shipping lines and trucking companies.

“This could be damaging to our country,” Bayocot said in an interview. “There are shipping companies that are no longer keen on making deliveries here, while others are skipping the Philippines because it usually takes them a week to unload, so it derails their schedules.”

“These developments will have a huge impact on our economy and three months from now we will start to feel increases in the prices of goods, hauling rates and shipping charges,” he added.

As it is, the congestion at the Port of Manila has prompted many truckers to raise hauling rates. In the case of CTAP, Bayocot said the group had issued guidelines under which member companies were told not to raise their hauling rates by more than 50 percent.

Shipping rates, meanwhile, have also increased as shipping companies reportedly started demanding additional fees—such as congestion charges and terminal handling charges, among others—at a total of $450 per freight container.

This amount will have to be paid on top of existing freight charges,

Bayocot said.

Read more: http://newsinfo.inquirer.net/617730/truck-ban-to-cause-price-hikes-in-3-months-biz-group-warns#ixzz37HZagOq9
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