Another shipping firm cuts fares
One more shipping company in Cebu has reduced its fare amid the volatility in fuel prices.
Lapu-Lapu Shipping Lines is reducing rates by four percent for its three vessels serving Cebu, Baybay City in Leyte and Cataingan in Masbate.
Alex Cohon, president of the Visayan Association of Ferryboat and Coastwise Service Operators (VAFCSO), said the Cebu-Baybay City-Cebu trips will have a new rate of P255 from P265 while the Cebu-Cataingan-Cebu route will have a new rate of P505 from P520.
Other members of VAFCSO are reluctant to reduce their rates.
Cohon said they raised their concerns during a recent VAFCSO meeting.
“They are willing to reduce their rates but will have to review their current rates vis-a-vis other expenses that may affect the fare rates,” he said.
The other shipowners said they were still evaluating their rates and other operation costs to determine whether reducing their rates now will not harm their balance sheets.
Chester Cokaliong, founder, president and chief executive officer of Cokaliong Shipping Lines, said fuel prices seemed volatile and it pays to be certain of the consequences before deciding.
“There is oil price increase starting today. We are evaluating whether to reduce or not,” he said.
Effective Tuesday, prices of gasoline increased by P1 to P1.20 while diesel prices went up by P1.20 to P1.40.
Pinky Sy, Trans-Asia Shipping Lines Inc. vice president for marketing and sales, said that as of last VAFSCO meeting, members were encouraged to review and revisit their rates in the light of fuel price reduction.
“With this, we are reviewing our rates vis-a-vis the new Marina circular, increasing regulatory fees and charges, high insurance premium, high cost of spare parts and already very low prevailing rates,” she said.
George and Peter Lines vice president Georgia Felice Chiongbian-Rama said that oil is just one factor that they consider in coming up with the rates.
“We have to really review figures and see if we can reduce prices. There are other factors like the operations cost, overhead costs, higher spare parts, bank loans and more,” she said.
Cohon said that he understands where the other members are coming from.
Meanwhile, the provisional order for taxi’s less P10 is still in effect.
Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Winston Ginez said that the board is still deliberating whether taxi fare adjustment will be imposed.
“We can’t commit when to render the final decision for the taxi fare adjustment,” Ginez told Cebu Daily News yesterday morning.
LTFRB board member lawyer Ariel Inton also told CDN that he is proposing to reduce the time instead of increasing the rate for waiting time.
At present, waiting time is P3.50 for every two minutes. The amount is also the same for the every three hundred meters.
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