10 percent drop in shipping fares ‘too small’; 30 percent cut asked

With the reduction in global oil prices, shipping lines registered in Cebu City have decreased their fares from one to 10 percent.

The cost of passage in at least 14 shipping companies went down by 5 to 145 pesos per passenger.

However, some consumers said the reduction was “too small” given the cheaper fuel prices.

In yesterday’s executive session of the Cebu City Council, Councilor Alvin Dizon made a motion to request shipping companies to make a significant decrease in their fares or more than 10 percent.
He proposed a reduction of  at least 30 percent

Engineer Elias Sabang of the Consumers’ Right for Economic Welfare  said the fare reduction in shipping was not commensurate to the decrease in oil prices, especially diesel.

“It’s not enough. Gamay ra kaayo. (It’s very small). Wala syay effect. (There’s no effect)” Sabang said after Councilor Margot Osmeña asked if the fare cut makes a difference.

He said shipping companies should be more sensitive to the tight economic situation of consumers. If they don’t reduce the fare, passengers might be forced to look for alternative means of travel.

Vicente Gambito, a former shipping executive who now represents a consumer group, said the decrease should be at least 20 percent.

He said the Maritime Industry Authority (Marina) should enforce orders to shipping companies to reduce their fare, but the agency appears to be a powerless regulator.

“This is very pathetic that Marina could only issue a request, and that’s not even an order” Gambito said.