A small freight-forwarding operator has raised concerns over the Port Klang Authority’s (PKA) proposed increases in charges for less-than-container-load (LCL) shipments, citing potential impacts on small traders and family-owned businesses in Malaysia. The operator, who has been handling shipments for smaller enterprises for eight years, called for greater transparency regarding the basis for the hike in fees.
The PKA’s proposed revisions include a 50% increase in the minimum warehouse handling charge, from RM20 to RM30. Additional escalations have also been outlined: warehousing charges are set to rise by approximately 31.78%, from RM1,010 to RM1,331, and freight-forwarding fees by 22.2%, from RM2,905 to RM3,550 for imports. Export-related charges would similarly increase, with warehousing fees up by 31.89% and freight-forwarding charges by 18.88%.
While acknowledging that operating costs such as salaries, electricity, and equipment have risen over the past decade, the freight forwarder stressed the need for PKA to clarify how these figures were derived. The operator urged the authority to disclose which specific cost factors contributed to the increases and to consider the cumulative effect of other tariff hikes that businesses are currently absorbing.
The increased fees pose a significant challenge for small businesses that rely on the LCL system to import goods in smaller quantities without committing to full containers. These enterprises often operate with narrow profit margins, meaning that even modest surcharges can affect their competitiveness, particularly for those managing multiple shipments.
The operator also expressed reservations about the plan to centralize LCL handling within the port itself. While recognizing the potential for improved efficiency and faster turnaround times, they emphasized the importance of supporting claims with data demonstrating cost savings or enhanced service delivery.
On a positive note, the industry participant welcomed PKA’s introduction of a same-day unloading standard for containers arriving at warehouses before 5 p.m. Faster processing, they noted, would help mitigate storage fees, prevent delivery delays, and reduce downstream complications for end customers.
Given ongoing economic uncertainties linked to recent global supply chain disruptions and geopolitical tensions in the Middle East, the operator recommended that PKA postpone the fee increase to avoid placing additional strain on small businesses during this recovery period. The message underscored the vital role that Port Klang plays in the regional logistics landscape and the importance of maintaining its competitiveness and operational efficiency.