GEORGE TOWN: Importers and shipping companies in the north of the country remain unaffected by disrupted trade routes – for now.
With many of the world’s largest shipping companies avoiding the Suez Canal to avoid attacks by Yemen’s Houthi rebels who are supporting Hamas in the Gaza war, the price of goods from Europe and the United States is expected to rise.
North Malaysia Shipping Agents Association president CK Ong said many shipping lines are diverting their routes although there are still ships that pass through the Red Sea.
“In any situation, there will be certain effects from the latest developments but it is still early to tell whether the impact will be serious for Malaysia or not.
“With more ships using the route around the Cape of Good Hope, there will probably be an increase in service rates.
“If this (war in Gaza) continues, the rates will continue to go up,” he said.
Going around Africa is a journey of over 21,000km, compared with 12,000km via the Suez Canal.
Most shipping guides report that the long way around will take an extra seven to 10 days, costing companies more in fuel, time and wages.
However, importers in northern Malaysia said they have not encountered problems yet in getting supplies.
Federation of Malaysian Manufacturers Datuk Seri Lee Tiong Li said manufacturing industries in Penang have ample resources to run their factories.
“Normally most of the materials we need are either shipped in or flown in from Asian countries like China and Japan.
“Even machinery is flown in, except the big ones that are shipped,” he said.
Lee said most products produced in the country are exported to the European and US markets through air routes, adding that they have not been affected by the war in the Middle East.
Aqeef Premium Meat store manager Muhammad Nazrul Akmam said he buys meats from three countries: Australia, India and New Zealand.
While there won’t be issues with the supply from the Oceania region, Nazrul expressed concern over supply from India in the future.
“Geographically, India is near to the Red Sea. If the war continues, I may have problems getting meat from India,” he said, adding however that he has ample stock in the company’s two shops on mainland Penang for now.
Sunshine Whole Mart Sdn Bhd marketing and communication manager Bryan Wong said the company’s shipments of mandarin oranges meant for Chinese New Year are in order and its chain of outlets will have no problem with stocks.
Meanwhile, Penang Port Sdn Bhd chief executive officer Datuk Sasedharan Vasudevan said ships docked at Penang Port have not been impacted by the issue as 70% of them come from the Far East and countries like China, Japan and Korea.
“Ships that came from Europe that brought cargo were handled via West Port, Port of Tanjung Pelepas or Singapore,” he said.
