Wednesday, July 11, 2007 'Shipping cartel' stifles local businesses growth By Carlo P. Mallo
HIGH shipping rates, which make regular shippers believe a cartel is controlling the prices, is stifling the growth of local business as bringing produce out of the region is very expensive.
According to Lito Ignacio, managing director of Polar Bear Freezing and Storage Corporation, the sky-high prices of shipping fees in the country is a major factor in the slow economic growth.
Shipping is ideally the cheapest among the three modes of transportation; however, Ignacio asserted shipping cargo from Davao City to Manila is almost as expensive as having the same load shipped to Australia.
He added that this is something that the government should look into.
Apart from the sky-high price of shipping in the country, the cost of power here is also taking its toll on the growth of the local economy. "Almost 50 percent of our profits go directly to the power companies," Ignacio added.
Despite these debilitating factors, Igancio is hopeful that the economic progress of the country would soon pick up.
Polar Bear Freezing and Storage Corporation is a part of the multi-billion industry of cold chain facilities. Cold chain facilities include cold storage facilities, trucking and transport of frozen cargo, and similar cargo.
