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The Ministry of International Trade and Industry has asked the Malaysian
Shipowners’ Association to explain and justify the imposition of the
contentious Terminal Handling Charges (THCs) by shipping lines serving ports
between Peninsular Malaysia, Sabah and Sarawak.
This follows recent meetings with the shipowners, as well as ports and
shippers from Sabah and Sarawak held under the aegis the Malaysian shippers
Council headed by Deputy MITI Minister, Dato Mah Siew Keong.
It is understood that at the last meeting, the shipowners body was asked to
justify the THC which shippers complained was contributing to the incidence
of high freight rates in the domestic trade.
Shippers from Sabah and Sarawak, led notably by the Federation of Sabah
Manufacturers have complained that the surcharges, apart from the THC, that
includes Congestion Surcharge, Documentation Fee and Bunker Adjustment
Factor are unjustifiably high.
Collectively the surcharges make up to 45 per cent of the total freight
charges paid by shippers, especially those in Sabah as ports in that state
attract high port congestion surcharge.
Shipowners have attempted to justify the imposition of the surcharges which
the shippers though not entirely accepted understood the need but not the
THCs.
The shippers pointed out that typically the freight rate for a 40-ft
container from Port Klang and Miri was three times (RM3150) that the charges
for the transportation of the container from Port Klang to Hong Kong
(RM1020).
MASA also explained contrary to claims the base freight rate for shipments
to ports in Sabah and Sarawak has actually declined in the last few years.
It was noted that the base freight had declined from RM1800 to RM1,300 for
shipment to Kota Kinabalu.
But this failed to satisfy the shippers who maintained the decline was only
on account of the removal of the surcharges from the base rate.
FSM pointed out that although the base rate had declined during surcharges
increased by RM1,105 with THC accounting for RM590, Documentation Fee RM160,
Congestion Surcharge RM150 and Bunker Adjustment Factor RM205 per TEU.
The imposition of the surcharges is purely an attempt to keep the profits
away from the cost, noted the shippers.
MITI is of the view that ways must be found to lower the freight charges as
it contributes to the high cost of doing business in the two East Malaysian
states while also contributing to a higher cost of living.
MITI is also concerned that importers and exporters in the state face high
freight charges to overseas market as well as this may contribute to the
lack of competitiveness of products from the two states. |
