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Congestion surcharge on ships calling at Kota Kinabalu
Published on: Friday, July 05, 2024
Published on: Fri, Jul 05, 2024
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Congestion surcharge on ships calling at Kota Kinabalu
Daily Express on Thursday sighted two letters purportedly issued by two major shipping companies – Malaysia Shipping Corporation Sdn Bhd and MTT Shipping Sdn Bhd – both dated July 4 and informing customers about the impending surcharge. - Bernama pic for illustration only.
Kota Kinabalu: Shipping companies heading for Kota Kinabalu are set to face a significant increase in operational expenses due to the implementation of a new Congestion Surcharge at Sabah Port. 

Daily Express on Thursday sighted two letters purportedly issued by two major shipping companies – Malaysia Shipping Corporation Sdn Bhd and MTT Shipping Sdn Bhd – both dated July 4 and informing customers about the impending surcharge.

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According to the letter from Malaysia Shipping Corporation, ongoing congestion at Kota Kinabalu Port has led to significant delays in vessel turnaround times, compromising schedules. 

To maintain service viability, the company will implement a Congestion Surcharge effective July 16, based on the Shipped on Board Date.

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The surcharge would apply to both Certificate of Conformity (COC) and shipper-owned container (SOC) shipments into Kota Kinabalu. 

For COC shipments, the surcharge is set at RM500 per twenty-foot equivalent unit (TEU), while for SOC shipments, it will be USD100 (approximately RM470.34) per TEU. 

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The surcharge would apply to all container types, including General Purpose Units, Reefer Units and Special Units such as Open Top Units or Flat Rack Units.

Similarly, MTT Shipping Sdn Bhd announced in their customer advisory that they would implement a Kota Kinabalu Port Congestion Surcharge effective July 15. 

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This surcharge would apply to all shipments to Kota Kinabalu port, covering both domestic and international shipments, and COC and SOC containers.

Their surcharge rates are COC: RM500 for 20-footer shipping containers and RM1,000 for 40-footer shipping containers;  SOC: USD100 for 20-footer shipping containers and USD200 for 40-footer shipping containers. 

These new surcharges are expected to have a significant impact on shipping costs for businesses operating in and around Kota Kinabalu. 
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