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The Malaysian National Shippers Council says the
lack of transparency in the transportation cost
fixing, in particular shipping costs, has
adversely affected shippers’ competitiveness in
global markets.
The Council in its report at the recent
Federation of Asean Shippers’ Councils lamented
that over the years, the cost of logistics has
increased tremendously with the introduction of
more than 35 mandatory and ad-hic charges by
logistics service providers, including shipping
lines.
Citing some examples, the Council said a
Malaysian exporter to Los Angeles now faces 19
different ad hoc and mandatory charges, apart
from the basic ocean freight compared with only
=8 in 1996.
“This significant increase in the number of
chargeable items, in addition to the ocean
freight, would undoubtedly make Malaysian
exports less competitive,” its report at the
FASC meeting noted.
According to MNCS in 1996, a Malaysian
manufacturer intending to export a twenty-foot
container to Los Angeles USA would have paid
only RM2,684.00 while the same could now cost
RM11, 876.50 – an increase of about 342%.
in 1996, the fixed charges imposed by the
service providers in addition to the ocean
freight rates amount to RM684.00 or 25% of total
logistics costs for export of a 20 foot
container.
In 2007, the fixed charges has since increased
to RM6,626.50 or over 55% of the total logistics
costs for export of a 20 foot container. Ocean
freight charges amount to only 45% of the total
logistics costs in 2007 compared to 75% in 1996,
the Council said.
“It is obvious that while manufacturers are
enduring to reduce product price through
aggressive rationalization activities, the
increasing fix charges in which the shipping
lines are in absolute control of have overtaken
the freight rates,” the Council report said.
The Council noted that negotiated charges i.e.
ocean freight only amounted to 25% of total
logistics costs while the major portion (75%) of
the logistics costs of transporting a 20 foot
container consist of non-negotiable charges.
MNSC said shippers would like to see only one
freight charge, i.e. Ocean Freight including all
other fixed and ad hoc charges for the shipment
of goods; However, charges for inland clearing
of products which include forwarding fees,
haulage charges, Customs Documentations and EDI
fee are to be negotiated or consulted with the
shippers. |
