KOTA KINABALU – Kota Kinabalu MP Chan Foong Hin has urged the government to boost its support for local shipping companies in Sabah as giant international shipping companies are starting to “abandon” the state.
The DAP man said the Transport Ministry should look into Sabah’s transportation and logistics woes to ensure a continuous supply of goods before all shipping giants cease doing business in the state.
“The problem is more serious in Sabah. (Shipping problems) might cause a surge in the cost of doing business, prices of goods, and cause food shortages in the state,” he said in a statement today.
Chan said several large shipping companies are currently unable to transport foreign goods into the state, as the cargo volume is too low due to reduced demand.
He said Sabah’s buyers who purchase goods from foreign suppliers must find third-party shippers, as certain vessels cannot reach the state.
“So, what had happened? To put it crudely, large shipping companies have abandoned Sabah,” he said in a statement today.
He said with the Russia-Ukraine war and the Covid-19 pandemic, the demand for shipping and containers in Sabah has dwindled to a point where international shipping companies such as AKA Main Line Operators are likely to make an exit from the state.
“In fact, since the Covid-19 pandemic, we have noted the suspension of international carrier services on the domestic trade between Peninsular Malaysia and Sabah, Sarawak, and Labuan due to the diversion of capacity to higher yield service routes,” he said.
He said the current congestion and low productivity in ports in both Sabah and Sarawak have caused severe delays and expanded voyage turnaround times.
He added this affected 25% of domestic operators’ effective capacity, making current shipping capacity “tight” in East Malaysia.
Chan said these big shipping companies have no obligation to dock in Sabah ports, despite being on the route.
“It is time to assist our local shipping companies that would go the distance to pick up goods and deliver them to smaller ports in Sabah & Sarawak,” he said.
“If the government can’t even take care of the local shipping companies, I fear that one day there will be problems for Sabah’s food supply when nobody will ship food, especially when the shipping of such essential foodstuffs is a loss-making business.” – The Vibes, May 26, 2022.
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