Sinking oil prices lower shipping rates

CEBU CITY—At least two shipping firms in Cebu have reduced their rates after fuel prices dropped to a record low.

Lite Shipping Corp. filed a notice to reduce cargo rates by 10 percent, said Jose Cabatingan, Maritime Industry Authority (Marina) chief in Central Visayas.

He said the new rates would take effect immediately after the filing of the notice at the Marina office.

Metro Ferry, which has eight vessels plying the Lapu-Lapu City-Cebu City route, also reduced its P14 fare by P1.

The reduction of the fare followed an advisory from Marina on Jan. 22 urging domestic shipping companies to lower rates for passengers and cargo to reflect the decline in prices of oil.

The Marina advisory said prices of petroleum products locally and in the international market have reached their lowest level in 12 years.

Rates being charged to passengers of sea vessels, said Marina, should “remain just and equitable” in light of declining oil prices.

On Feb. 16, oil companies cut down prices of gasoline by P1.40 per liter, 70 centavos per liter for diesel and 90 centavos per liter for kerosene.

Since the start of the year, the net decline in prices of oil reached P3.28 per liter for gasoline and P1.90 per liter for diesel, according to the Department of Energy.

But so far, only Lite Shipping and Metro Ferry have reduced their rates.

Lite Shipping, which has 19 vessels serving 10 routes in the Visayas and Mindanao, adjusted only cargo rates because the shipping firm had already reduced rates for passengers.

Neil Pingkian, Lite Shipping Corp. operations manager, said the firm has been offering promotional rates since August last year.

“We offer the promo for standard accommodation only. We have also reduced our rates for freight services from 10 percent to 20 percent,” said Pingkian.

A group composed of 23 shipping companies also agreed to lower fare.

But the amount of the reduction would be decided in a meeting on Thursday night, said Alex Cohon, head of the Visayan Association of Ferry Boat and Coastwise Service Operators.

Pinky Sy, Trans-Asia Shipping Lines Inc. vice president for marketing and sales, said her company would wait for the outcome of the meeting before announcing any fare reduction.

George and Peter Lines Inc. vice president Georgia Felice Chiongbian-Rama said before reducing rates, company officials want to meet with representatives of other shipping lines first as a gesture of courtesy.