Guidelines on Interisland Shipping Rate Increase

MARINA issues the guidelines pursuant to a Maritime Industry Board Order dated December 01, 1994 that authorizes increases of 15% in passage rates and 10% in freight rates for interisland liner shipping.
The circular authorizes qualified operators to implement a new rate structure/schedule subject to enumerated conditions.
The circular preserves the fork tariff system for both passage and freight as previously authorized under MC 57.

Only member-companies represented by the Conference of Interisland Shipowners and Operators in this petition are authorized to implement the rate structure and schedule.
Any other operator may implement the schedule if the operator has filed applications for rate increase, paid the corresponding filing fee, and received the corresponding Order authorizing implementation.
Authorization to implement is conditioned on compliance with the conditions set forth under the circular.

Both with-meals and without-meals passage rates use a fork tariff system: the new rate is allowed to be charged as indicative or base rate plus 10% of the base rate as the upper limit (maximum), and minus 15% of the base rate as the lower limit (minimum).
Meal provision is optional to operators for passage.
First and Second Class passage rates remain deregulated for vessels offering such accommodation in accordance with service standards under MARINA Memorandum Circular No. 65, subject to the Third Class allocation requirement.

For Third Class, rates are set by distance category, with Minimum, Base, and Maximum values:
- 0–100 nautical miles: 1.0930 (Minimum), 1.2859 (Base), 1.4145 (Maximum).
- 101–300 nautical miles: 1.0043 (Minimum), 1.1815 (Base), 1.2996 (Maximum).
- 301 nautical miles and above: .9157 (Minimum), 1.0773 (Base), 1.1850 (Maximum).
For Second Class with meals, rates are set by distance category, with Minimum, Base, and Maximum values:
- 0–100 nautical miles: 1.9201 (Minimum), 2.2589 (Base), 2.4848 (Maximum).
- 101–300 nautical miles: 1.7725 (Minimum), 2.0853 (Base), 2.2938 (Maximum).
- 301 nautical miles and above: 1.5951 (Minimum), 1.8766 (Base), 2.0643 (Maximum).

For Third Class, rates are set by distance category, with Minimum, Base, and Maximum values:
- 0–100 nautical miles: 1.0548 (Minimum), 1.2409 (Base), 1.3650 (Maximum).
- 101–300 nautical miles: .9691 (Minimum), 1.1401 (Base), 1.2541 (Maximum).
- 301 nautical miles and above: .8837 (Minimum), 1.0396 (Base), 1.1436 (Maximum).
For Second Class without meals, rates are set by distance category, with Minimum, Base, and Maximum values:
- 0–100 nautical miles: 1.8528 (Minimum), 2.1798 (Base), 2.3978 (Maximum).
- 101–300 nautical miles: 1.7105 (Minimum), 2.0123 (Base), 2.2135 (Maximum).
- 301 nautical miles and above: 1.5393 (Minimum), 1.8109 (Base), 1.9920 (Maximum).

Third Class accommodation must be allocated and maintained: at least fifty (50) percent of the authorized passenger capacity of the vessel must be allocated and maintained for Third Class Accommodation.
Second Class passage rates become regulated in either of these situations:
- When only First and Second Class accommodations are provided; or
- When Third Class passenger accommodation provided by the vessel is less than 50% of the vessel’s total passenger capacity.
Passage rates for distances beyond the defined upper limits of 100 and 300 nautical miles must in no case be lower than the rates for shorter distances in the lower distance category.

Freight rates adopt a fork tariff system with the same concept of Minimum, Base, and Maximum limits for each class and distance category.
The freight rate computation establishes an official rate: the computed rate shall be considered the official rate.
For freight, the rate for a longer distance than 100 nautical miles or 300 nautical miles (as applicable) must in no case be less than the rate for a shorter distance in a lower distance category.

Class A freight rates (Minimum / Base / Maximum):
- 0–100 nautical miles: 89.8253 + (.6790) (dist.) / 105.6768 + (.7988) (dist.) / 116.2445 + (.8787) (dist.)
- 101–300 nautical miles: 73.9839 + (.6336) (dist.) / 87.0399 + (.7454) (dist.) / 95.7439 + (.8199) (dist.)
- 301 nautical miles and above: 58.1427 + (.5884) (dist.) / 68.4032 + (.6922) (dist.) / 75.2435 + (.7614) (dist.)
Class B freight rates (Minimum / Base / Maximum):
- 0–100 nautical miles: 71.8950 + (.5431) (dist.) / 84.5823 + (.6389) (dist.) / 93.0405 + (.7028) (dist.)
- 101–300 nautical miles: 59.1872 + (.5067) (dist.) / 69.6320 + (.5961) (dist.) / 76.5952 + (.6557) (dist.)
- 301 nautical miles and above: 46.5320 + (.4700) (dist.) / 54.7435 + (.5529) (dist.) / 60.2178 + (.6082) (dist.)
Class C freight rates (Minimum / Base / Maximum):
- 0–100 nautical miles: 58.3982 + (.4421) (dist.) / 68.7038 + (.5201) (dist.) / 75.5742 + (.5721) (dist.)
- 101–300 nautical miles: 48.1023 + (.4126) (dist.) / 56.5909 + (.4854) (dist.) / 62.2500 + (.5339) (dist.)
- 301 nautical miles and above: 37.8044 + (.3828) (dist.) / 44.4758 + (.4504) (dist.) / 48.9234 + (.4954) (dist.)

Operators availing of the increase must have complied with and must maintain standards of safety and seaworthiness required by the Government.
Companies/operators must submit their Audited 1994 Annual Reports on or before 30 June 1995.
Liner operators must submit to this Authority a certification showing a list of distances of all their authorized links by the National Mapping and Resources Information Authority (NAMRIA).
Any matrices of authorized limits of rates must be certified by this Authority.
Operators must post in conspicuous places at their terminals, booking stations, and other places of transaction the prescribed rates and/or the matrices thereof.
Operators must submit to this Authority a quarterly report on actual rates charged.

Any violation of, or failure to comply with, the guidelines and conditions constitutes a sufficient ground for suspension/revocation or cancellation of the vessel’s franchise or Certificate of Public Convenience (as the case may be).
The administrative consequence is in addition to the penalties prescribed under the Public Service Act, as amended, and other relevant rules and regulations of this Authority.