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  28th July 2008 - STAR MARITIME

Congestion is one of the reasons for high freight charges

CONGESTION at the ports is one of the main reasons for the high freight rates between Peninsular and East Malaysia, according to prominent industry players.

The congestions have affected ships turnaround time, resulting in high freight rates. Presently, there are about 15 local shipping companies that serve the trade route.

“Ships sometimes have to wait for a week to unload or load cargo at the ports.

“Although one of the ports issued a circular explaining that the congestion is due to equipment malfunction, they should have back up plan,” an industry player told Starbiz.

He added that the high freight rates were also due to the inevitable high bunker surcharge.

“The base freight rate is now lower than the surcharge. Also, for all the laden containers shipped to east Malaysia from the peninsular, 80% of the returning containers are usually empty.” the industry player said.

Currently, the freight rate including the bunker surcharge for this particular trade route stands at RM1,500 to RM1,800 per 20-footer container.


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