Shipping firms reduce fare rates

After reducing their passenger rates, members of the Visayan Association of Ferry Boat and Coastwise Service Operators (VAFCSO) are hopeful that passengers will appreciate their move.

In an interview yesterday, VAFCSO president Alex Cohon said that the eight companies who are engaged in passenger ferry business are already reducing their rates from five to ten percent.

The shipping companies are George and Peter Lines Incorporated, Lapu-Lapu Shipping Lines Corporation, Cokaliong Shipping Lines Incorporated, Trans-Asia Shipping Lines Incorporated, Roble Shipping Incorporated, Lite Shipping Corporation, Danilo Lines Incorporated and Gabisan Shipping Lines Incorporated.

According to Cohon, for their part at Lapu-Lapu Shipping Lines Corporation, they have already reduced their rates by P15 for their Cebu-Baybay City-Cebu route and P30 for the Cebu-Masbate-Cebu route.

Trans-Asia Shipping Lines Incorporated spokesperson Pinky Sy said they will decrease rates for their Cebu-Cagayan de Oro and Ozamis routes Second-class non-aircon accommodation by P10.

“We couldn’t decrease other ports as these are already under promo rates,” said Sy.

Chester Cokaliong, founder, chief operating officer and chief executive officer of Cokaliong Shipping lines also informed that they have already implemented reduced rates for their Cebu-Ozamis-Cebu and Cebu-Iligan-Cebu rates since January 26.

Cebu-Ozamis-Cebu and Cebu-Iligan-Cebu economy accomodation rate is now P910 from P920, a reduction of P10.

Effective February 1, they will also be reducing their rates for Cebu-Dumaguete-Cebu routes by P10 to P310.

Cohon said that there are 26 members of VAFCSO with most companies engaged in cargo operations.

“Of the 26 members, only the eight companies are classified as liners or passenger vessels. The other companies cannot give a fixed reduced rates since their rates are usually negotiated so the rates really differ,” he said.

Cohon said that before the request from Marina or Maritime Industry Authority to reduce their rates, the members were already talking among themselves to also reduce their rates.

“We want to the public to understand that we are always willing to respond. Please also know that in 2012 most of the companies did not increase our rates even when the oil prices went really high in 2013,” he said.

Deregulated
Jose Cabatingan, Marina-7 spokesman said that their central office has issued a directive compliance to the shipping companies last year to reasonably adjust the fares due to the series fuel rollbacks.

Cabatingan said that there is no uniform rate for the adjusted fares because the maritime transportation is deregulated unlike land transportation.

“It also varies on the accommodation of the passenger vessel,” Cabatingan said.

The Marina-7 spokesperson said that this is the first fare adjustment since 2009. Rates, he said have been pushed down by competition.