Title
Guidelines on Interisland Shipping Rate Increase
Law
Marina Memorandum Circular No. 92
Decision Date
Dec 1, 1994
The Maritime Industry Board authorizes a 15% increase in passage rates and a 10% increase in freight rates for interisland liner shipping, implementing a regulated rate structure while ensuring compliance with safety standards and reporting requirements for operators.

Questions (MARINA MEMORANDUM CIRCULAR NO. 92)

It implements the Order (dated 01 December 1994) of the Maritime Industry Board authorizing increases of 15% (passage) and 10% (freight) for interisland liner shipping, by prescribing guidelines, tariff structure, schedules, and compliance conditions.

Only member-companies represented by the Conference of Interisland Shipowners and Operators in the petition, and any other operators who filed applications for the rate increase, paid the corresponding filing fee, and were issued the corresponding Order approving the increase.

A “fork tariff system” for both passage and freight continues to be adopted, consistent with MC 57 and/or the coverage provisions, with an allowed indicative/base rate plus 10% as the maximum and minus 15% as the minimum.

The allowed indicative/base rate may be charged within: (1) a maximum of base rate + 10%, and (2) a minimum of base rate − 15%.

Meals are optional to the operators. Separate published rates apply depending on whether meals are included (with meals) or not (without meals).

First and Second Class passage rates remain deregulated for vessels offering such accommodation, provided compliance with the service standards under MARINA Memorandum Circular No. 65, and with the third-class capacity allocation requirement.

At least fifty percent (50%) of the authorized passenger capacity must be allocated and maintained for Third Class accommodation.

Second Class passage rates become regulated (not deregulated), using the prescribed Second Class regulated rates shown in MC No. 92 (with meals and without meals).

Passage rates for distances greater than the upper limits must not be lower than the rates for shorter distances in the lower distance category.

Freight rates are given per class (A, B, C) and distance categories (0–100, 101–300, 301 and above) as formulas of the form: base number + (coefficient) × (dist.). The computed rate is treated as the official rate.

For rates at a longer distance, the rate shall not be less than the rate for a shorter distance in a lower distance category.

Operators availing of the increase must have complied with and maintained the government-required standards of safety and seaworthiness.

On or before 30 June 1995.

They must submit a certification showing a list of distances of all authorized links, using National Mapping and Resources Information Authority (NAMRIA) data.

Any matrices of authorized limits of rates must be certified by MARINA (the Authority).

Operators must post the prescribed rates/matrices in conspicuous places at terminals, booking stations, and other transaction points; they must also submit a quarterly report on actual rates charged.

Violation or failure to comply constitutes sufficient ground for suspension/revocation or cancellation of the vessel’s franchise or Certificate of Public Convenience, aside from penalties under the Public Service Act as amended and other MARINA rules.

Fifteen (15) days after its publication once in a newspaper of general circulation in the Philippines.


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