Supply Chain Council of European Union | Scceu.org
Transportation

PSB man urges authorities to help lower transportation costs

Datuk John Lau

KUCHING (Jan 16): Parti Sarawak Bersatu (PSB) Kota Sentosa representative Datuk Dr John Lau Pang Heng has called on the authorities concerned to help reduce transportation and shipping costs to a manageable level.

This, he believes, will in turn, make consumer goods affordable as the increase in transportation cost results in price hikes of goods.

He added that consumers, particularly those in the B40 and M40 groups, are affected by the price hike.

Lau was commenting on recent complaints by businessmen who called for urgent government intervention as transport charges from China to Sarawak have increased by leaps and bounds in recent months.

He said he had seen some shipping invoices shown to him by businessmen and was surprised with the increasing transportation cost, adding that the authorities so far has yet to take action.

He also said he had contacted some shipping companies which later confirmed sea freight increases in the recent months.

“For a 40-feet refrigerated container, its sea shipping cost from China to a port in Sarawak cost USD3,000 before the pandemic.  The current sea shipping cost is USD8,000 per 40-feet refrigerated container. Shipping cost has increased by 1.67 times. Moreover, main ocean cargo liners from China only call at Bintulu port.

“Thus, for businessmen in Kuching, due to urgent cargo needs by wholesalers and consumers, they engaged trailers to bring their cargo containers to Kuching. Each 40-feet container transport cost from Bintulu to Kuching is RM5,600; the businessman is required to send the empty container back to Bintulu at a transport cost of RM2,800. Such transport charges incurred an additional cost of RM8,400 per 40-feet container,” he added.






Related posts

FILE PHOTO: Cargo ships are docked in Black sea port of ODESSA – Colorado Springs Gazette

scceu

Oil tanker owner says ship attacked in Saudi Arabian Red Sea

scceu

RIB Software SE (RIB) signs a MTWO Phase-II-contract (No. 02 / 2021) with Flughafen Leipzig/Halle GmbH

scceu