Freight cost to delta region volatile

The freight rates for a 150-mile Yangon-Labutta trip will be changed to K70 per viss from 29 August 2022. Transportation of palm oil will be charged at K80 per viss, Ko Myo Win Ko, a trader who delivers goods from Yangon to delta region told the Global New Light of Myanmar (GNLM).
For a Yangon-Myaungmya route which is 30 miles less than Labutta trip, freight cost is set at K40 per viss and palm oil transportation is charged at K45 per viss. Truck operators running the Yangon-Labutta trip blamed the fuel price hike for raising the freight rate to K70-80, he continued.
The rate for Yangon-Labutta route can be the highest among the delta regions, freight forwarders said.
Earlier, transport by shipping was the only viable option. At present, the number of ferry passengers has dropped. Some ferries have stopped running for five years. This way, road transport has become the popular mode of transport, Ko Naing Lin, a grocer in Bogale Township, told the GNLM.
On 24 August, the price of diesel which is used in trucks stood at K3,000 per litre. The price slightly rose to K3,225 on 26 August and K3,195 on 27 and 28 August, retail price data of Yangon Region indicated. For a 113-mile Yangon-Pathein road trip, some truck owners raise the freight rate, the GNLM quoted U Htaw, an owner of trucks, as saying.
The amount of fuel consumed for the Yangon-Pathein route by six-wheel truck (16 tonne capacity) is 80 litres to Bayintnaung and 100 litres to Myaungtagar. Freight rate for rice was estimated at K1,000 per bag while vehicle operating cost for solid waste was K240,000. When a rice bag is charged at K1,200 for transportation, waste costs K300,000 per truck, U Htaw added.
The truck operators plan to cover wages of drivers, toll and other general costs with a return trip from Yangon. The owners can generate only K50,000 profit per round trip if they earn K500,000, said an owner on 27 August.
Earnings from freight transportation for the Yangon-Pathein trip is lower than income for the Pathein-Yangon route, Ko Maung Yu, a six-wheel truck driver, told the GNLM.
Similarly, freight cost for a Yangon-Labutta route is over K300,000. When the freight rate continues to increase, it will be much higher compared to the costs of other similar routes.
At present, the rate is higher than those of Myaungmya and Pathein routes if it is calculated on transportation distance and chargeable weight of the consignment, said a trader from regions other than Yangon told the GNLM.
Increase in freight cost posed a burden on the consumers only, Ko Chit, a trader shared his opinion.—TWA/GNLM

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