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Rising commodities prices, low demand affect freight forwarding service

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Lorries loaded with goods are seen near the warehouses at Bayintnaung Wholesale Market.

Freight flows normally decline in the monsoon season. This year, a drop in freight volume, delays in some routes and fuel hikes posed a negative impact on truck freight forwarding service compared to the corresponding period of the previous years.
The frequency of truck freight forwarding service dropped by half. Some highway cargo service has gradually slowed down and operated every other day. A bus terminal owner Ko Htay posted on his Facebook that traffic congestion daily occurred on Kayay Street at Bayintnaung Wholesale Market. This month, the number of vehicles declined.
Similarly, Yetama, Nguwah and Aungthabyay streets were packed with around 30 trucks carrying onions and potatoes. This month, the truck inflows significantly dropped. That being so, there is low traffic on Kayay and Yetama streets with the truck freight forwarding services to regions inside and outside Yangon going down, Ko Aye Myint who works in a warehouse located on Yetama Street, told the Global New Light of Myanmar (GNLM).
Moreover, along with commodities prices soaring, freight volume ordered by regions outside Yangon has drastically fallen, especially building materials.
Also, the delivery of palm oil from Yangon to other regions and states decreased more than by half, Ko Aung Tun Lin, a trader who delivers the goods to regions outside Yangon, told the GNLM.
Even the highway passenger express bus carried the cargo without passengers, resulting in a drop in freight volume for the cargo trucks. One truck liner running to delta regions notified the customers of a K15 increase per viss due to a fuel price spike. However, other truck operators stay strong and the freight rate remains unchanged. As a result of this, one truck liner can raise the price by K5 per viss instead of K15, the GNLM quoted Ko Myo, a purchaser who sends truck loads of goods to other regions every day.
There are over 300 truck gates in Bayintnaung. The number of trucks decreased from 10 to four per day in September, Ko Naing from Freight Forwarding Association, told the GNLM.
Although truck operators are struggling with the low profit, they cannot help running the trucks to cope with the earnings of their workers in the difficult times, Ko Nay, an owner of the truck stand, said. – TWA/GNLM

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