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Ocean carriers have implemented modest rate hikes, temporarily halting a steady decline in freight rates since July.

20 Nov 2024

Ocean carriers have implemented modest rate hikes, temporarily halting a steady decline in freight rates since July. However, weak demand, seasonal slowdowns, and port congestion, exacerbated by adverse weather in Central China, remain key challenges. Post-Golden Week blank sailings and pre-rate hike shipments temporarily boosted capacity utilisation, but ongoing demand weakness could lead to further rate cuts once cargo backlogs clear. These fluctuations impact Malaysia and Penang, where shipping costs and potential delays could disrupt trade flows and supply chain efficiency, particularly given Penang's role as a feeder port.

Professional logisticians can play a crucial role in mitigating these challenges for traders by:
- Optimising Shipments: Streamlining cargo consolidation and route selection to reduce costs and improve reliability.
- Managing Risks: Preparing contingency plans to address delays and disruptions caused by congestion or weather conditions.
- Monitoring Market Trends: Providing timely advice on freight rate movements to help traders secure the best shipping options.
- Leveraging Partnerships: Building strong relationships with carriers and forwarders to ensure capacity and stable rates during volatile periods.

By offering these solutions, professional logisticians can help traders adapt to maritime industry challenges, maintain competitiveness, and support Malaysia’s position in global trade.

- Comments shared by Dato’ Logistician Chang Kah Loon 拿督曾家麟教授, FCILT, FLogM (Professor of Practice in Logistics and Chief Executive of AK Academy 勤 略 學 院
 
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