Soaring fuel prices affect shipping industry

Local

AS ONE local ferry operator cancels selected routes due to rising fuel costs, other shipping companies will continue operations but will impose temporary fare and cargo surcharges amid rising global oil prices tied to the ongoing conflict in the Middle East.

In an advisory, Lite Shipping Corporation will implement a temporary fuel surcharge on all passenger fares and freight rates effective Wednesday, March 11.

The company said, “This measure is necessary to help offset the rising fuel costs and to ensure the continued safe and reliable operation of our vessels.”

The firm assured passengers that the surcharge is temporary and will be lifted once fuel prices stabilize.

Medallion Transport Inc. announced a similar move, imposing a temporary fuel surcharge on passenger fares and cargo rates starting March 10.

In its advisory, the company said, “This was a difficult decision; however, it is necessary to sustain our operations during these volatile times.”

They emphasized its commitment to providing reliable service and thanked passengers for their understanding.

Trans-Asia Shipping Lines will apply a 20 percent fuel surcharge on passenger fares effective March 9 and on cargo rates starting March 11.

The company explained, “Please be advised that rates remain fluid due to the current market volatility.”

Trans-Asia cited escalating tensions in the Middle East, which have restricted fuel availability and increased maritime operational costs.

Additionally, Roble Shipping Inc. and Super Shuttle Ferry implemented temporary fare increases on March 9.

Roble Shipping stated, “Our main priority is to keep serving the riding public safely and reliably,” while Super Shuttle Ferry announced a 20 percent adjustment across all branches, noting the change was necessary to maintain safe and dependable service amid rising fuel costs.

Meanwhile, OceanJet temporarily suspended several passenger trips connecting Cebu City with parts of Leyte and Bohol from March 6 to March 20, including routes between Cebu and Palompon, Palompon and Cebu, and Cebu and Getafe.

The company cited the ongoing fuel crisis and has not immediately indicated when normal operations will resume.

Analysts warn that sustained oil price increases could ripple across multiple sectors in the Philippines, including transportation, food, and logistics.

President Ferdinand Marcos Jr. earlier said he is seeking emergency powers from Congress to reduce excise taxes on petroleum products if Dubai crude prices exceed $80 per barrel, a move aimed at easing potential fuel price spike.

The Palace said Marcos will ask Congress for emergency powers to cut excise taxes on petroleum products amid the Middle East crisis, Malacañang said Sunday (New York time).

Palace Press Officer Claire Castro said the Department of Energy will submit the formal request on the President’s behalf, likely on Monday.

Marcos has said he may use emergency powers to lower fuel taxes if oil prices hit or exceed USD80 per barrel.(MyTVCebu)