Kota Kinabalu: Sabah’s manufacturers are calling for government intervention over worsening port congestion, urging the State Government, State Industry, Entrepreneurship and Transport Ministry and the Sabah Ports Authority to play a more active role as the situation continues to affect local businesses.
The Federation of Malaysian Manufacturing (FMM) Sabah Branch made the appeal on Thursday as new shipping surcharges took effect, adding further strain on businesses already faced with rising costs.
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In a statement, here, FMM Sabah Chairman Liaw Hen Kong said port operations had reached a critical state, with persistent disruptions to container trucking, vessel omissions, container rollovers and prolonged gate-in and gate-out delays becoming increasingly common.
He said the situation was compounded this week when feeder operators announced a Congestion Surcharge and General Rate Increase effective May 7, attributed to the port’s difficulty in clearing its backlog.
For Carrier Own Container shipments, the Kota Kinabalu Port Congestion Surcharge stands at RM500 for a 20-foot container and RM1,000 for a 40-footer.
Shippers using their own containers face charges of USD130 and USD260 respectively. Hauliers are also anticipating an additional surcharge of between RM200 and RM300 per box, expected to take effect on May 15.
“This is a direct consequence of port operational challenges, yet the Sabah business community is being asked to bear the cost. This is entirely unacceptable,” Liaw said, adding that businesses should not have to pay the price for circumstances beyond their control.
FMM noted that Sabah manufacturers were already at a structural disadvantage compared to their Peninsular counterparts, contending with higher raw material and fuel costs.
The additional burden of Detention and Demurrage charges has further strained operations, with some businesses reporting lost international orders, reputational setbacks and customers shifting to ports in other regions.
He said that ongoing cost pressures were beginning to affect end-consumers, as manufacturers facing mounting surcharges and storage fees had limited capacity to continue absorbing the expenses.
“This risk eroding public purchasing power and undermining the long-term sustainability of the state’s industrial sector,” he said.
Liaw noted that Sabah was contending with pressures on two fronts, the Middle East conflict contributing to what he described as Imported Inflation, while port-related disruptions were generating a separate layer of Domestic Logistical Inflation.
