Letter to Editor
I REFER to recent reports about the Port Klang Authority’s proposal to revise warehousing and freight-forwarding charges for less-than-container-load (LCL) cargo.
I run a small freight-forwarding business and have spent the past eight years moving goods in and out of Malaysia for other companies.
Most of my customers are not large corporations. They are small traders, family businesses and manufacturers bringing in goods in quantities too small to fill a container.
LCL shipments allow these businesses to share container space with other shippers and pay according to the cargo they move. For many small businesses, this is a practical way to bring goods into the country without having to commit to a full container.
That is why the proposed increase in LCL warehousing and freight-forwarding charges is worrying for those of us in the small freight-forwarding business. We will eventually have to explain to our customers why moving their goods has become more expensive.
I understand that operating costs have increased. Salaries, electricity, equipment and other expenses have all gone up. Nobody expects businesses to operate indefinitely on rates that were set years ago.
But PKA needs to answer a simple question: How were these proposed increases calculated?
The proposal would raise the minimum warehouse-handling charge from RM20 to RM30, a 50% increase. Other charges would also increase.
The Federation of Malaysian Manufacturers has cited an illustrative 20-cubic-metre or 20-tonne import shipment in warning about the impact on businesses.
Based on the proposal, warehousing charges would rise from RM1,010 to RM1,331, or 31.78%, while freight-forwarding charges would increase from RM2,905 to RM3,550, or 22.2%.
For exports, the proposed increases are 31.89% for warehousing and 18.88% for freight-forwarding charges.
These additional costs could be significant for small businesses operating on thin margins. A few hundred ringgit may make a difference when a company handles multiple shipments.
For transparency, PKA should make public the basis for the proposed increases.
What costs have risen? By how much? What exactly are businesses paying more for? And how does the proposal take into account other Port Klang-related tariff increases that businesses are already absorbing?
Without these answers, it is difficult for businesses to assess the proposal properly or plan ahead.
I would therefore urge PKA to consider holding off on the increase, at least until the concerns raised by affected businesses have been properly addressed. The Malaysian economy is still facing considerable uncertainty, while businesses continue to deal with higher operating and logistics costs.
Small businesses are particularly sensitive to such increases because they do not have the purchasing power or economies of scale enjoyed by larger companies. If logistics costs continue to rise, some businesses may eventually consider alternative ports or supply-chain arrangements.
I am also concerned about the proposal to keep LCL handling within the port. If this is intended to make the process faster and more efficient, PKA should explain how. If it is expected to reduce costs or improve turnaround times, businesses should be shown the evidence.
Small businesses need a logistics service that is reliable, predictable and provides value for money.
That is why I welcome the proposed same-day unloading standard for containers moved to a warehouse before 5pm. Faster handling would benefit everyone.
When cargo is delayed, customers can face additional storage costs, delayed deliveries and problems with their own customers.
Port Klang is an important part of our businesses and livelihoods. We want it to remain competitive and efficient.
For a small business, every shipment counts, and so does every ringgit.‒Oct 8, 2026
Ng Kuan Yoong
Desa Pandan
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: Malay Mail
