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The Federation of Malaysian Manufacturers (FMM) has warned that the Red Sea shipping crisis could result in freight rates tripling in 2024 compared to 2023.
Global shipping companies have shifted ships from the Red Sea route to longer routes around the southern tip of Africa due to escalating tensions in the Red Sea, resulting in longer voyage times and potentially tripling freight rates.
FMM urges manufacturers to prepare container bookings for the export market in advance and adopt measures such as near-shoring and purchasing from within the region to deal with tight capacity. It also recommended air freight as an emergency transport option and called on shipping companies to honor pre-booked freight commitments.
FMM emphasizes transparent communication and negotiation of new shipping charges and surcharges.
(Source: nst Image source: freepik)
