PORT KLANG: The freight forwarding industry wants the government to intervene and help bring down overseas logistics rates which have escalated almost 10 times compared to the pre-COVID-19 period, said an industry member.
Freight forwarder Mory-Tnte Mondial Express Sdn Bhd chief operating officer N. Thaswin said a 40-foot container that gets sent to the United States pre-COVID-19 would be in the range of US$3,000 (US$1=RM4.23) to US$4,000 per container but the same container now costs US$22,000 to US$23,000 currently.
"It (the freight cost) is ridiculous. Other countries are getting involved whereby they have conducted dialogues with carriers and they're given incentives for the possibility of reducing their freight cost.
"Malaysia's manufacturing companies are among the biggest in South East Asia and there are a lot of foreign direct investments involved and these (high freight rates) are taking a toll on manufacturers because even though they are able to manufacture goods, they are unable to export due to the increase in freight costs.
"We hope the government will be able to intervene in the escalating logistics cost to see how they (the government) can help logistics companies," he told Bernama after witnessing the arrival of MV Tonsberg, one of the biggest roll-on/roll-off ships, at Westports here today.
Thaswin said shipping lines are engaging in monopolistic practices due to losses incurred during COVID-19, particularly in the first six months of the global lockdown.
"They were unable to operate and move goods, so now they're trying to recover that. Most of the shipping lines are in an alliance so they have a general rate increase every month which has to be complied with by all the shipping lines that are in an alliance group," he said.
Thaswin added that the government should intervene because the governments of other countries are intervening, either through directives or incentives.
Citing Westports as an example, he said that the government can work with the port operator to give certain incentives to shipping lines that come to Port Klang, whereby those shipping lines will be given competitive or cheaper rates compared to shipping lines in other countries.
Thaswin said Malaysia also has similar freight cost issues pertaining to air cargo, as a lot of cargoes are being shipped to Singapore because of the vast difference in cost between airports in Malaysia and Singapore.
"It is much cheaper in Singapore, so this is another area that needs to be looked into. A lot of our cargoes move via Singapore because we can't get the flight or the space and the freight rate is an issue in Malaysia as it is not competitive at all.
"Singapore (airports) have cheaper rates because not only the government intervenes in the rates, they have more flight options, as it is more competitive and the (logistics) prices are lower," he said.
Mory-Tnte Mondial Express Sdn Bhd has been involved in the international and Malaysian freight forwarding scene for over 34 years and has covered all aspects of logistics - air, sea and land as well as project-based logistics, with core businesses in the oil and gas as well as heavy industry sectors.
--BERNAMA
Bernama
Wed Aug 18 2021
The arrival of MV Tonsberg, one of the biggest roll-on/roll-off ships, at Westports here today. - BERNAMA
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.