Cebu-based logistics and transport operators are seeking to raise trucking and transport fees by as much as 30% as surging fuel prices squeeze margins, according to Leslie D. Lim, chief executive officer of LDL Group of Companies, which operates logistics and transport businesses.
Lim said transport firms were asking customers to allow an increase of around 30% in trucking charges at a time when average fuel prices were hovering at about P100 per liter. Based on prevailing trucking rates in Cebu of around P9,000 to P10,000 per trip, that would translate to an added P2,700 to P3,000, she said.
“We ask our customers to allow us to increase 30% on trucking, transport fees at the current P100/liter average fuel price,” Lim said, noting that rates could rise further if pump prices continue to climb.
Lim said the impact of higher fuel costs is disproportionately felt by transport operators compared to manufacturers, where fuel represents only a small portion of overall expenses.
“It doesn’t affect too much the manufacturing sector because fuel is a small percentage of their operation. But for us transport companies, fuel is vital,” she said.
Lim, who is also part of the Customs Industry Consultative and Advisory Council (CICAC), said a similar increase in transport charges had been implemented during Typhoon Odette, when Cebu experienced fuel shortages and widespread power outages.
The push for higher trucking fees comes as the Philippines faces renewed fuel price volatility driven by geopolitical tensions in the Middle East, which have pushed global oil prices higher and triggered successive pump price increases in recent weeks.
The Department of Energy has warned of continued price swings, while lawmakers have moved to give the president authority to suspend fuel taxes to cushion the impact on consumers and businesses.
For logistics firms, Lim said, rising fuel prices are an immediate operational challenge that leaves little room but to pass on costs to customers in order to sustain operations.
Cebu Business News
