The Federation of Malaysian Manufacturers (FMM) has called upon Malaysian shippers to brace for prolonged disruptions in the Red Sea, following the escalating security crisis unfolding in the region which has forced shipping firms to divert vessels to a much longer route.
Its president, Tan Sri Soh Thian Lai, urged shippers, including exporters and importers, to refine their business strategies to safeguard their supply chains, minimise delays to meet customer demands and reduce the impact of the situation in the Red Sea.
Given the fluctuating freight rates and uncertain transit times, FMM suggested that shippers prepare container bookings and shipping schedules preferably one month in advance for exports to affected markets.
“For goods that are not time-sensitive, it is advisable to wait until the first few weeks of February during the Chinese New Year holiday as freight costs are expected to decrease during this period,” said Soh.
He also urged shipping companies to honour the pre-booked freight rates given to Malaysian shippers, without adjustments.
“Any announcement on new increases in freight rates or introduction of surcharges should be communicated transparently and negotiated directly with shippers to allow exporters to plan and negotiate with their importers,” he said in a statement today.
