GEORGE TOWN: The volume of outbound and inbound cargo handled by the Penang Freight Forwarders Association (PFFA) dipped by 10.25% and 9% respectively for the January to May period compared to the same period a year ago.
PFFA honorary secretary-general Ali Ahmad said that from January to May, the volume of outbound cargo contracted to 13,816 tonnes from 15,395 tonnes achieved in the corresponding period of 2019.
The volume of inbound cargo contracted to 24,803 to 27,246 tonnes.
”In view of the drop, we don’t think the earlier forecast of 68,872 tonnes and 45,922 tonnes for the respective outbound and inbound cargo handled is achievable.
”We need to wait until September to see whether the electronic companies here will further cut production.
”The outbound cargo contracted because customers from the United States, Europe, and China cut orders.
”We can see the shipment of electronic products to Shenzhen slow down significantly.
“This past five months we have seen a surge in the air shipment of rubber gloves.
“Usually the rubber gloves are shipped via sea, but because of the virus outbreak, the rubber gloves have to be shipped out via air to reach their destinations on time, ” Ali said.
“Electronic components comprise about 70% of the outbound air cargo.
According to Ali, if the trend of the past five months continues, the earlier projections will not be realised.
”We are hoping for transhipment cargo to arrive so that there will be jobs for us and boos the volume of cargo handle.
”Either that or there is a last-minute surge in orders to boost the tonnage of exports, ” Ali said.
Meanwhile, the air freight rates to Asian countries, which are badly affected by the Covid-19 pandemic, have soared by over 100% since January.
Ali said the rates were RM3 per kg in January 2020 to ship cargoes to China, Japan and South Korea.
“Because of the Covid-19 outbreak, the rates are now more than RM18 per kg. The rates to these countries are at a historical all-time high, ” Ali added.
On the other hand, the rates to the US and Europe are maintained unchanged at more than RM10 per kg.
“Due to the cancellation of flights and constraint of space to and from Malaysia, the rates shoot up, ” he added.
