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The Philippine Liner Shipping Association will pass on to shippers/clients some of the fuel cost increases it is incurring due to the continued volatility of fuel supply and rates
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PLSA said while its member companies have taken proactive measures to manage costs and minimize the impact on customers, “the scale of the increase makes it increasingly difficult to absorb these expenses”
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The Philippine Coastwise Shipping Association, Inc. is urging the Department of Energy to investigate the unjustifiably higher marine fuel prices being charged by some oil companies
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The Supply Chain Management Association of the Philippines also asks government to act with urgency “as the longer it takes to implement measures, the more our end consumers will face high prices of basic goods and commodities”
The Philippine Liner Shipping Association (PLSA) will pass on to shippers/clients some of the fuel cost increases it is incurring due to the continued volatility of fuel supply and rates.
In a statement on March 13, PLSA said with fuel accounting for up to half of the operating costs of liner shipping services for some members, the industry is currently facing “a significant challenge due to the continued rise and volatility of fuel prices.”
“While our member companies have taken proactive measures to manage costs and minimize the impact on customers, the scale of the increase makes it increasingly difficult to absorb these expenses,” PLSA pointed out.
“To ensure the continued operation of reliable inter-island shipping services that connect communities and support the movement of goods across the Philippines, some of these fuel cost increases will need to be passed on. We remain committed to maintaining safe, dependable, and efficient services while working to keep any necessary adjustments as reasonable as possible,” the group added.
Earlier this month, PLSA notified the Maritime Industry Authority (MARINA) that its member shipping lines “will be constrained” to implement an upward adjustment in freight – in the form of bunker fuel surcharge – to cover for the “sudden surge in global fuel prices due to the continued escalation of tensions in the Middle East and the uncertain indication yet of the potential scale and timeframe of the conflict.”
READ: Domestic sea cargo carriers to impose bunker fuel surcharge
Passenger and cargo rates in the domestic liner shipping industry have been deregulated since 2004 through Republic Act No. 9295 (Domestic Shipping Development Act of 2004), but shipping lines are required to notify MARINA and the public of any subsequent upward rate adjustment two weeks prior to effectivity.
PLSA in its notice letter said the upward adjustment – rates of which will depend on the individual shipping lines’ operating costs – will be effective from March 20 onwards.
Aside from PLSA members, other shipping lines have also already sent their advisories to clients about the imposition of bunker fuel surcharge.
According to MARINA Advisory (MA) No. 2026-10, upward adjustment of passenger fare and cargo freight rates or fuel surcharge up to a maximum of 20% of the base fare will be allowed only during the crisis period. Any upward adjustment or fuel surcharge of more than 20% will be subject to MARINA’s evaluation.
Marine fuel
Relatedly, the Philippine Coastwise Shipping Association, Inc. (PCSA) said several of its members reported that some oil companies are charging marine fuel prices exceeding the prevailing retail pump prices.
PCSA is urging the Department of Energy to investigate the reported higher rates, warning that continued increases in fuel prices could compel shipping operators to reduce sailings or suspend operations, which would disrupt the movement of goods and passengers nationwide.
Outside the Philippines, several other shipping operators have already been imposing surcharges due to the increasing fuel prices.
Vincent Clerc, chief executive of Danish shipping giant Maersk, in a recent interview with BBC said increased transport costs driven by the conflict in Iran will be passed on to consumers.
For the cargo owners’ side, the Supply Chain Management Association of the Philippines (SCMAP) in a statement sent to PortCalls said its members — including companies in manufacturing, retail and logistics — are implementing their own measures to mitigate the rise in logistics costs.
“We encourage companies to explore these options, such as co-loading and advanced booking, to ensure that we continue to deliver value to our partners and customers, particularly in these challenging times,” SCMAP said.
Moreover, the group said it welcomes efforts by the government to control logistics costs amid the global fuel supply and transport crunch.
“We urge our leaders to act with urgency as the longer it takes to implement measures, the more our end consumers will face high prices of basic goods and commodities,” SCMAP said.
Earlier, MARINA through MA 2026-10 issued its contingency measures to address the impact of the ongoing Middle East crisis on the maritime industry.
READ: Local shipping lines allowed to adjust rates, route schedules
MARINA said it is looking to waive the payment of annual tonnage fee due in 2026, grant a 75% discount on the payment of fees and charges on applications for issuance of ship documents/certificates during the period of crisis, and suspend the implementation of its new fees and charges under Memorandum Circular (MC) No. No. GC-2026-01, which took effect last February.
These measures are subject to the approval of the MARINA Board and issuance of the corresponding memorandum circular.
Shipping companies/operators may also reduce or limit trips of ships, consolidating passengers and cargo volume to optimize load capacity of ships, subject to MARINA’s approval. It noted though that shipping companies/operators should prioritize the transport of basic and critical commodities/cargoes.
Cancellation of trips may be allowed subject to MARINA’s approval, except due to technical problems that may compromise safety of ship operation.
Shipping companies/operators should also issue travel advisories informing passengers of possible trip consolidation, schedule changes, or travel limitations approved by MARINA.— Roumina Pablo
