Cebu shipping firms mixed on fare rate adjustment call

Shipping companies in Cebu agreed to “review and rationalize” their fare rates in response to a call by the Maritime Industry Authority (Marina) to reduce fares due to the decline in global oil prices.

Pinky Sy, vice president for marketing and sales of Trans-Asia Shipping Lines, said  the agreement was reached in a meeting by the Visayan Association of Ferryboat and Coastwise Service Operators (VAFSCO) held last January 15.

“Any adjustment on rates shall be made and implemented per company basis. For our part (Trans-Asia), we have not implemented any adjustment or reduction as we are currently reviewing our rates,” Sy said.

George and Peter Lines, Inc. vice president Georgia Felice Chiongbian-Rama said they will be reducing rates in their economy passenger accommodation for the Cebu-Dumaguete-Cebu route.

“For the period, GP Lines is delighted to adjust its economy passenger rate for its Cebu – Dumaguete, Dumaguete- Cebu route by reducing it to P10 as of February 1, 2015 in the interest of the riding public and in light of the series of oil price rollbacks,” she said.

Maintenance cost
Cokaliong Shipping Lines, Inc. founder, chief executive officer and chief operating officer Chester Cokaliong said there are many factors to consider before deciding on a reduction of rates.

“We have to take a look at a lot for factors that affect us,” he said enumerating seven factors. “One, we are presently a deregulated industry. Second, it’s not just fuel and oil that we have to consider. Another factor is the cost of spare parts did not go down so maintenance cost has not reduced,” Cokaliong said.

He said dry-docking cost is still the same while the salaries of their crew and personnel went up.

Cokaliong added that interest rates and insurance premiums from bank loans which they obtained for financing have also not gone down.

“With all these factors that interplay, it’s not viable for us at this stage to immediately reduce our fare rates,” he said.

Other members who attended the meeting like 2Go Travel, Roble Shipping, Inc., Medallion Transport, Inc., Lite Shipping Corp., and Lapu Lapu Shipping Lines Corp. have yet to decide on their fare rates.