Most highway cargo transport vehicles have suspended their services due to rising fuel oil prices and a shortfall of goods. General freight charges for highway cargo transport vehicles have increased by 10 per cent, according to Myanmar Highway Freight Transportation Service Association.
Aung Moe, Secretary of Myanmar Highway Freight Transportation Service Association, said: “Cargo transport services are on the verge of collapse.. Commodity prices don’t increase. Most highway cargo transport vehicles have to stop their operations. It will be ok for cargo transport vehicles if they could increase freight charge for personal goods, vermicelli, noodle and wheat, from Ks75 to Ks85 per viss.”
Ko Ko Naing, President of Myanmar Highway Freight Transportation Service Association said: “In the past, highway cargo trucks running Magway-Yangon route earn around Ks 200,000 for one round-trip. They are now earning around Ks 170,000 for one. Most highway cargo trucks have ceased their operations as it doesn’t breakeven. As China suspends sugar imports from Myanmar, freight charges going towards Muse have dropped from Ks81,000 to Ks68,000 and for Mandalay, from Ks38,000 to Ks31,000. There is a stockpile of idle highway cargo trucks in Myawady as the greenback appreciates against local currency and there are no cargo inflows.”
The value of a US dollar has dropped to around Ks1550 but the fuel oil prices continue rising. Prices for fuel oil increased from Ks557 in 2016 to Ks1,075 per liter in late September. In addition, fuel expense for Yangon-Taunggyi schedule has increased from Ks230,000 in 2016 to Ks450,000 as of writing. Fuel oil accounts for 84 per cent of the total expenditure.
