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
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.