IMPLEMENTING GUIDELINES ON THE RATE INCREASE AND CHANGES IN LEVEL AND STRUCTURE

Pursuant to the Order of the Maritime Industry Board dated 25 October
1990 authorizing an increase in passage and freight rates and providing
for changes in the level and structure of interisland liner shipping
rates, the following guidelines in implementation thereof are hereby
promulgated:

1.  Coverage — The following rules and regulations shall apply to all interisland liner service operators:

1.1  The surcharge of .3/10% of the declared value of the
commodity is hereby abolished.  Henceforth, all commodities are to be
charged the corresponding class rate on a weight or volume basis only,
whichever is higher.

1.2  The rates for the following cargoes: refrigerated, transit,
and livestock, are deregulated.  For purposes of rate computation, the
following are considered BASIC commodities: rice, palay, corn,
corngrits, fruits and vegetables.

2.  Only member-companies of the Conference of Interisland
Shipowners and Operators and any other operators who have filed
applications for rate increase by paying the corresponding filing fee
and issued the corresponding Order therefor are authorized to implement
the following structure/system and schedule of rates subject to the
following conditions:

2.1  Rate structure/system both for passage and freight

A fork tariff system both for passage and freight shall be
adopted only by those authorized under paragraph 2 hereof.  The new
rate, as specified herein, as the indicative or base rate; plus 5% of
the base rate as the upper limit (maximum) and minus 5%, as the lower
limit (minimum), shall be allowed to be charged.

2.2  Passage Rates

			Per Passenger
Distance in Nautical Miles	First Class	Second Class	Third Class
			Minimum	Base	Maximum
0 – 100	Unregulated		0.9485 x dist.	0.9984 x dist.	1.0483 x dist.
101 – 300	Unregulated		0.8714 x dist.	0.9173 x dist.	0.9631 x dist.
301 – over	Unregulated		0.7946 x dist.	0.8364 x dist.	0.8782 x dist.

 

CONDITIONS

a.  A minimum of 50% of the authorized (passenger) capcity of the
vessel shall be allocated and maintained as Third Class accommodation.

b.  The service standards prescribed by the Inter-Island
Passenger Service Standards Project for First, Second and Third class
accommodations are hereby adopted and made part hereof.

c.  The passage rates to be prescribed for distances greater than
the upper limits of the distances categories, i.e., 100 and 300
nautical miles, shall in no case be lower than the rates for shorter
distances (in a lower distance category).

2.3     Freight Rates

Class A

Class B
Distance in N.M.	Minimum	Base	Maximum	Minimum	Base	Maximum
0 — 100	95.1321 + (.7192 x dist.)	100.1391 + (.7570 x dist.)	105.1461 + (.7948 x dist.)	76.1425 + (.5752 x dist.)	80.1500 + (.6055) x dist.)	84.1575 + (.6358 x dist.)
101 — 300	78.3548 + (.6711 x dist.)	82.4788 + (.7064 x dist.)	86.6027 + (.7417 x dist.)	62.6840 + (.5366 x dist.)	65.9831 + (.5649 x dist.)	69.2823 + (.5931 x dist.)
300 — over	61.5777 + (.6232 x dist.)	64.8186 + (.6560 x dist.)	68.0596 + (.6888 x dist.)	49.2810 + (.4977 x dist.)	51.8748 + (.5239 x dist.)	54.4685 + (.5501 x dist.)
Class C				Class C (BASIC)
Distance in N.M.	Minimum	Base	Maximum	Minimum	Base	Maximum
0 — 100	61.8484 + (.4682 x dist.)	65.1036 + (.4929 x dist.)	68.3588 + (.5175 x dist.)	54.9764 + (.4162 x dist.)	57.8699 + (.4381 x dist.)	60.7634 + (.4600 x dist.)
101 — 300	50.9442 + (.4370 x dist.)	53.6255 + (.4600 x dist.)	56.3068 + (.4830 x dist.)	45.2838 + (.3884 x dist.)	47.6671 + (.4088 x dist.)	50.0505 + (.4293 x dist.)
301-over	40.0379 + (.4054 x dist.)	42.1451 + (.4268 x dist.)	44.2524 + (.4481 x dist.)	35.5892 + (.3604 x dist.)	37.4623 + (.3793 x dist.)	39.3354 + (.3983 x dist.)

 

CONDITIONS

In the computation of the freight rate, the computed rate shall be
considered the official rate; and the rate for a longer distance than
100 nautical miles or 300 nautical miles as the case may be shall in no
case be less than the rate for a shorter distance in a lower distance
category.

3.  In implementation of the above schedule of rates, the following conditions must be complied with:

3.1  That vessels must have passed the Operational Readiness
Evaluation (ORE) and must have complied with SOLAS and other safety
requirements to the satisfaction of the Philippine Coast Guard and this
Authority.

3.2  That operators shall 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).

3.3  That any matrices of authorized limits of rates shall have to be certified by this Authority.

3.4  That operators shall post in conspicuous places at their
terminals, booking stations, and other places of transaction the
prescribed rates and/or matrices thereof.

3.5  That operators shall submit to this Authority a quarterly report on actual rates charged.

4.  Penalty — Any violation of, or failure of the operators to
comply with, the guidelines/conditions hereinabove set forth shall
constitute a sufficient ground for the suspension/revocation or
cancellation of the vessel’s franchise or Certificate of Public
Convenience as the case may be, in addition to the penalties prescribed
under the Public Service Act, as amended and other relevant rules and
regulations of this Authority.   DIHETS

This Circular shall take effect on November 12, 1990.

Adopted: 26 Oct. 1990 .

(SGD.) PHILIP S. TUAZON
Administrator