By Genivi Factao

The Alliance of North Harbor Trucking Association (ANHTA) said trucking rates must be increased by 16 percent per twenty equivalent units (TEU) starting this January.

ANHTA has advised their clients, the Distribution Management Association of the Philippines (DMAP) and the Philippine Liners Shipping Association (PLSA) about their planned increase as they are hit by the increasing fuel costs, spare parts and labor cost.

From the present P5,100 per TEU at 20 kms radius within the National Capital Region (NCR), they seek for an increase to P5, 917.77.

"This is a survival relief rate. Further unnecessary delay in its approval will consequently result to inefficiencies or in a worst case scenario a "dead horse" trucking industry," the group said.

The planned increase was laid by Teodorico Gervacio, president of Integrated North Harbor Truckers Association, Elpidio Gaerlan, president of WGA Truckers Association and Catalino Costales, president of Allied Trucking Group, Philippines.

They further warned of inefficiencies in inland transport chain should the planned increase would not materialize.

"You will certainly agree with us that the country’s macroeconomic machinery needs a thriving and efficient inland transport chain," it said.

"There is no need to emphasize that a dying inefficient inland transport industry will consequently result to unwanted inefficiencies and domino effect delays," according to ANHTA.

"Delay in deliveries of raw materials will result to delay in the manufacturing process; delay in the pick up and deliveries of goods will also delay the departure of vessels and ultimately delay in all aspects of commercial activities," they claimed.

The group complained that the current rate which was implemented starting May 2006, can no longer support their daily operations and this prompted some operators to sell their trucks.

It can be recalled that the Department of Trade and Industry (DTI) sought the reduction of trucking rates to bring down logistics cost and reinforce the export industry, which has been affected by the strengthening Philippine peso.

The truckers, led by Allied Transport Group (ATG) and the Confederation of Truckers Association of the Philippines (CTAP), strongly opposed the move claiming they have been striving to survive their ailing business.

At present, other operators have closed their business, which they inherited from their ancestors.