The Port Klang Authority (PKA) is considering a proposal to increase charges on less-than-container-load (LCL) shipments starting in January 2027, a move that could impact small retailers, manufacturers, and e-commerce sellers in Malaysia. The proposed increases encompass fees related to storage, handling, processing, and freight forwarding of LCL cargo—shipments too small to fill an entire container and common among online sellers and small businesses.
Under the proposal, warehouse handling fees for LCL cargo would rise from RM12 to RM16.50 per tonne, while the minimum charge would increase by 50%, from RM20 to RM30. Storage, overtime work, cargo surveys, and carpentry services are also expected to see rises of around 30%. Meanwhile, the terminal-handling charge for freight forwarding is proposed to climb from RM55 to RM60 per cubic metre. Additional fees, including declaration and documentation charges, would see increases between 15% and 30%. These adjustments would affect both importers and exporters, particularly small and medium-sized enterprises (SMEs) without sufficient cargo volume to fill entire containers.
PKA General Manager Datuk Capt K. Subramaniam stated that the proposal remains under consultation through the Unified Public Consultation process, coordinated by the Malaysia Productivity Corporation. He emphasized that feedback from manufacturers, logistics providers, and other stakeholders has been considered, and the authority plans to engage further with affected parties before finalizing rates. If approved, the increases would be phased in after a reasonable adjustment period.
Industry representatives have expressed mixed responses. The Federation of Malaysian Manufacturers (FMM) has raised concerns about the proposed hikes, cautioning that the increases could disproportionately burden SMEs and manufacturers dependent on small, frequent shipments of raw materials and components. FMM President Jacob Lee Chor Kok suggested retaining the current minimum warehouse-handling charge of RM20 until the planned RM55 terminal-handling fee takes effect in January 2027 and called for a longer evaluation period before implementing additional increases. He also requested detailed, independently verified cost data and a standardized fee schedule.
Similarly, the Federation of Malaysian Freight Forwarders acknowledged that the rates had not been reviewed for a decade and noted rising operating costs such as fuel and equipment maintenance. Its president, Datuk Dr Tony Chia, said the review aims to balance cost recovery while minimizing the impact on users, but he acknowledged that any increase would likely be passed on to importers and exporters, with smaller operators feeling the effects most acutely.
From the e-commerce sector, concerns have been raised about the impact on Malaysian online sellers, especially those handling small LCL shipments commonly ranging between 0.5 and 5 cubic metres. Malaysia Cross Border e-Commerce Association President Datuk Dr Danny Tan highlighted that higher logistics fees could squeeze profit margins, potentially forcing sellers to consider alternative routes or more expensive freight options. He warned that increased costs might reduce Malaysia’s competitiveness as a logistics hub if improvements in Customs clearance and cargo handling efficiency do not accompany the surcharge. Dr Tan recommended more groupage and co-loading, transparent and itemized charges, digital documentation, and a phased approach to fee implementation to mitigate negative effects.
SME advocates also voiced concerns. SME Association of Malaysia President Dr Chin Chee Seong noted that while some firms might absorb the cost increases, others may pass them on to customers, increasing landed costs for imported goods and raising export prices. He called for a gradual rollout, a differentiated fee structure for genuine small-volume shippers, and continued consultation with SMEs and trade associations.
The PKA’s proposal, last reviewed in 2015, reflects ongoing cost pressures stemming from fuel, labor, utilities, and infrastructure. The final decision rests with the Transport Ministry and will require legal formalities before taking effect. Stakeholders await the outcome of the consultation process, which will shape the future cost landscape for Malaysia’s LCL cargo handling.