CNI News

22 Jan 2023

Container trucks transporting tissue bananas to Kanpaiti border trade gate at the Chinese border have to decrease freight charges to lower than that of the previous year, according to truck drivers in Kanpaiti.

As a result, earnings for truck drivers and owners have dropped and they are likely to suffer losses if they are required to repair their vehicles, Ko Shan Gyi, a truck owner, told the CNI.

He said,"Freight charges have dropped to about 7,000 Yuan. In the past, we earned as much as 8,000 Yuan to 13,000 Yuan from place to place. So, freight charges have dropped significantly. We haven't suffered losses but our earnings have dropped. In the past, we earned as much as MMK 1.3 million. We can earn MMK 850,000. If we don't need to repair our vehicles, it is still profitable for us. If we have to repair our vehicle, we will suffer losses."

Freight trucks.

Freight charges were reduced after the state government, tissue banana companies and banana plantation owners held negotiations in November, according to truck drivers.

Another reason for decreasing freight charges may be falling banana harvests and lower demand for freight transportation but they are likely to increase when bananas are harvested massively, Ko Thawdar Aung, a truck driver, told the CNI.

He said, "Last year, the demand for transportation was high and we could raised freight charges. This year, only a few banana plantations have been harvested and the demand for freight transportation is low. As a result, we were forced to accept the freight charges they proposed. Last year, truck owners could ask the fees they liked as the demand for freight transportation was high. When bananas are harvested massively after the Chinese New Year, we can ask for higher fees."

As bananas are being harvested in only a few plantations, truck drivers can operate only two trips to the border a month at the moment but their incomes are likely to increase when bananas are harvested massively and they can operate more trips to the border.

Container trucks are being used in the border trade in Kanpaiti and 60 percent of freight trucks have been transformed into container trucks.