PETALING JAYA: Malaysian online sellers could face higher costs and tighter profit margins if a proposal to raise charges for less-than-container-load (LCL) shipments at Port Klang goes ahead.
Malaysia Cross Border e-Commerce Association president Datuk Dr Danny Tan said the impact would be more significant for sellers handling small LCL shipments, which are typically between 0.5 and five cubic metres.
These include sellers on platforms such as Shopee, Lazada and TikTok Shop, as well as those operating their own online stores.
He said higher shipping and handling costs could make it harder for sellers with small profit margins to remain competitive.
“Some sellers may consider other logistics hubs or switch to air freight or courier services, although these options are usually more expensive.”
Tan said LCL charges are only part of the overall cost, which also includes freight, terminal handling, documentation, haulage, duties, and the sales and service tax.
“For e-commerce sellers, the main concern is the total cost and time needed to move a small shipment,” he noted.
He also said Malaysia could lose some small-volume trade to other logistics hubs if higher charges are not matched by faster Customs clearance and more efficient cargo handling.
For consumers, he said the impact would be more noticeable on low-value, bulky goods, and products with small profit margins.
“Some of the increase is likely to be passed on to consumers, but it will not be a one-for-one increase for every imported item.”
He added that sellers could absorb part of the increase, while others might raise prices or switch to more expensive air freight and courier services.
To reduce the impact, Tan called for more groupage and co-loading among small and medium-sized enterprise (SME) sellers, clearer and itemised CFS (container freight stations where LCL shipments are handled) and forwarding charges, greater use of digital documentation, and faster Customs clearance.
He also suggested phasing in new charges slowly or offering lower rates for small consignments.
He said higher charges could be more acceptable if they come with better services, including improved CFS equipment, night-gate operations, and better system integration to reduce delays and additional fees.
“Small consignments are how Malaysian online sellers start, restock and export,” Tan said, referring to the fact that online sellers rely on small shipments to start their businesses, replenish stock and sell goods overseas.
SME Association of Malaysia president Dr Chin Chee Seong said the proposed increases could be significant for micro and small businesses that use LCL shipping.
Chin said SMEs are likely to both absorb part of the increase and pass some costs to customers, depending on market conditions.
Higher logistics costs could also raise the landed cost of imported raw materials, components and finished goods while making Malaysian exports more expensive overseas, he added.
Chin urged the government to consider a gradual implementation, a more SME-friendly structure for genuine small-volume LCL users, transparent charges, and further consultation with SMEs and trade associations.
