MARINA allows up to 30% rise in fares, cargo charges

BOAT FARES and ship cargo rates have been allowed to rise as much as 30%, the industry’s regulator, the Maritime Industry Authority (MARINA), said.

In a March 30 advisory, MARINA authorized domestic shipping companies, ship operators, shippers, charterers, and cargo owners to raise their charges by up to 30% from the rates published in their certificates of public convenience (CPC) or franchises, citing global fuel costs and state of national energy emergency.

The order, signed by Administrator Sonia B. Malaluan, said increases may only be implemented at the pace of the weekly required rate adjustments (RRA) issued by MARINA.

“Shipping operators must observe the RRA to be issued by MARINA on a weekly basis. The RRA shall serve as the maximum allowable limit for any rate adjustments implemented by shipping operators specifically attributed to fuel price fluctuations,” it said. 

MARINA said the 30% cap on rate adjustments also covers the collection of fuel surcharges of up to 20% of base fares, announced earlier this month.

The regulator added that the transport of agricultural products, basic and critical commodities will continue to be given priority and will remain subject to a 20% limit for rate adjustment.

Operators must also notify MARINA and the public at least three days before implementing any upward rate adjustment, it said, noting that they must publish the notification in a newspaper of general or regional circulation or post notice in ports, vessels, company premises, passenger terminals, and official websites and social media accounts.

“Should global fuel prices decrease, operators are mandated to implement a corresponding downward rate adjustment. Similar to increases, these must be posted or published and will take effect three calendar days following the notification,” MARINA said.

MARINA said it will regularly monitor freight and passenger rates to deter overcharging.

“The inflation impact should be modest and sector‑specific, not broad‑based, since transport is just one cost component,”  Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said via Viber on Tuesday.

The Bangko Sentral ng Pilipinas, in its month-ahead inflation forecast, projected March inflation at 3.1% to 3.9%, up from 1.8% a year earlier and 2.4% in February.

The central bank attributed the acceleration to rising fuel, electricity, and rice prices, compounded by the peso’s sustained depreciation.

“But allowing reasonable rate increases actually reduces the risk of disruption. From a policy standpoint, it’s better to absorb a manageable cost pass‑through than face delays or shortages in the movement of goods,” Mr. Ravelas said.

Ateneo Center for Economic Research and Development Senior Research Fellow Ser Percival K. Peña-Reyes said the move is linked to fuel price volatility, as shipping companies face rising operating costs that could lead to adverse consequences if fares are not adjusted.

“Some routes might become unprofitable. Service frequency could decline. Supply chains could be disrupted. So, the policy is a trade-off between short-term inflation pressure and maintaining stable logistics services,” he said via Viber.

The rise in fares and cargo charges will likely add to inflation through higher logistics costs, especially for food, construction materials, and basic goods, according to Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera.

“As transport costs increase, businesses tend to pass these on to consumers. It may also affect the flow of goods as some operators could reduce trips or adjust routes to manage costs, leading to delays. While necessary for industry viability, it risks amplifying second-round inflation effects if fuel prices remain high,” Mr. Rivera said. — Ashley Erika O. Jose