Major shipping lines have ‘abandoned’ Sabah, Kota Kinabalu MP says

With the outbreak of the Russian-Ukrainian war and the factors of Covid-19, Kota Kinabalu MP Chan Foong Hin said the demand for shipping and containers has changed, so many major international shipping companies tend to abandon the Sabah market, because the loading volume is too small. —Photo Reuters

Thursday, May 26, 2022 10:27 PM MYT

KOTA KINABALU, May 26 – The food supply problem in Sabah may actually be more serious than in West Malaysia, said Chan Foong Hin, MP for Kota Kinabalu.

He said Sabah was also facing another problem that West Malaysia might not face so badly, namely rising costs in the transport industry and even shipping charges.

The problem of constantly rising logistics costs will inevitably lead to an increase in the cost of doing business and the prices of goods, including foodstuffs, he said.

Chan said in a statement today that he recently communicated with the business community in Sabah and learned that the biggest problem in Sabah is that shipping is often delayed, and even foreign suppliers cannot send the goods in Sabah at the same time, and that buyers in Sabah must find a third party shipper to transport the goods to the final destination in Sabah on their behalf.

“So what happened?” To put it roughly, the big shipping companies have ‘abandoned’ Sabah,” he said.

With the outbreak of the Russian-Ukrainian war and the factors of Covid-19, Chan said the demand for shipping and containers has changed, so many major international shipping companies tend to abandon the Sabah market, because the freight volume is too small.

“In fact, since the Covid-19 pandemic, we have seen the suspension of international carrier services on domestic trade between Peninsular Malaysia and Sabah, Sarawak and Labuan due to the diversion of capacity to higher service routes. yield.

“With the big shipping companies having no obligation to dock at Sabah ports despite being on the road, it is time to help our local shipping companies who would go the distance to pick up the goods and deliver them. to the small ports of Sabah and Sarawak. If the government can’t even take care of the local shipping companies, I’m afraid that one day there will be problems for the food supply of Sabah when no one ships them, especially when the Shipping these essential foodstuffs is a loss-making business.

“I recognize that increasing logistics costs is a big problem that is not easy to solve, and the state government alone may not be able to manage it. It should seek the intervention of the federal government, especially the Federal Department of Transport,” he said. — Borneo Post Online

About Julie Gray

Check Also

Analysis: Soaring tanker freight rates are driving up fuel costs in Mexico

HOUSTON/MEXICO CITY, Aug 4 (Reuters) – High rates around the world for transporting oil are …