Kota Kinabalu: The Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) said a Congestion Surcharge to be imposed by shipping firms effective July 16 is expected to have a significant impact on businesses in and around the State Capital.
KKCCCI President Datuk Michael Lui described the planned implementation of RM500 to RM1,000 on all container types as both incredible and unreasonable.
It wanted to know what standards the firms used to implement the surcharge.
One firm cited continuous congestion at Kota Kinabalu port which caused serious delays in ship turnaround time, affecting the shipping schedule and causing a significant increase in operating costs.
However, Lui criticised the move, saying it was absolutely unfair to the importers to directly bear the costs.
Our report on July 5.
“We believe the Government should intervene immediately to see whether the shipping companies had obtained the Government’s approval to implement the port congestion surcharge to clear up everyone’s confusion.
“What is even more infuriating is that the port congestion is an efficiency issue of the port authority. Why do shipping companies insist on us industry players to pay for it?”
Lui who discussed the matter with relevant business players, Friday, pointed out that the relevant authorities including the Sabah Port Authority, did not take prompt measures to solve the problem that had been dragging on for some time.
“The issue has been unresolved until now, which has severely hit and affected daily operations of business community, importers and exporters, resulting in a shipping company now daring to privately announce implementation of the surcharge, which will be borne by importers and cause heavier operating losses!
“If the port management does not resolve the problem, the situation will definitely be even more unimaginable. We must pay attention to the chain effect of the port congestion surcharge and the final victim will be consumers.”
Lui said Sabah Ports must recognise that the current poor port conditions have brought quite serious efficiency problems and directly caused huge losses to the business community.
“If we continue to take no active action, it will be useless. KKCCCI calls on Sabah Ports to arrange for all parties to sit down face to face to find the root cause and the solution soon as possible.
“We hope the relevant authorities will seriously explore improving the port efficiency, solving the problems of the industry and reducing the operation cost, to strengthen our international competitiveness in this regard.”
The Association of Frozen Meat and Food Importers of Sabah also expressed concern on the planned surcharges of RM500 for a 20-foot container and RM1,000 for a 40-foot container. It’s Chairman Lim Young Peing said the surcharges would add undue burden to all dependent on the business.
“This will eventually trickle down to the consumer and will exacerbate the inflationary pressures which the government is trying very hard to contain.
“Rather than passing on the cost, we hope the shipping lines will find ways to reduce cost and improve efficiency,” he said in a statement.
Lim said the simultaneous announcements by various shipping lines indicates anti-competitive behaviour.
“These heavy handed imposition of surcharges raises serious concerns about fair trade practices within the shipping industry serving Sabah.
“We urge the relevant authorities, including the Sabah Ports Authority, the Malaysian Competition Commission and the State Government to intervene and investigate this matter thoroughly.
“It is imperative to the benefit of all Sabahans that shipping companies operate in a fair and competitive environment, where costs are justified and transparent to all stakeholders,” he said.
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