Shipping sector players in Kochi don’t expect increase in transportation cost despite the recent hike in diesel prices because the trailer operators in the Vallarpadam Terminal are not likely to raise rates.
Container trailer operators in the terminal are suffering from muted cargo traffic and hence they may avoid hiking rates in response to the diesel price hike, reports suggest.
Also, it is learnt that the absence of sufficient trailer crew is posing a problem to trailer operators and they may desist from any further hike in rates at the current scenario.
According to the Vallarpadam Trailer Owners Association, there may not be any immediate hike in rates, as the already existing rates are under-quoted.
The officials in the Cochin Container Carrier Owners Welfare Association said the impact of diesel price hike on cargo movement would be decided only after convening a meeting.
Jorge Kurian, ASL Logistics Limited, the operators of bulk petroleum products, said that most of the public sector companies have incorporated such provisions while entering into contract with transport operators of petroleum products.
Meanwhile, it may be recalled that the Kerala Goods Transport Federation has been demanding the state government to constitute a committee to study the impact of fuel price rise especially for the transport industry and come out with solutions to minimize the impact to the sector.
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