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The relaxation of the
cabotage policy will not solve the problem of
high freight rates to ship goods within
Malaysian waters, especially from Sabah and
Sarawak to Peninsular Malaysia, said Malaysian
Shipowners Association (MASA) vice-chairman
Datuk Abdul Hak Md Amin (pic).
The cabotage law was introduced in 1981 to
reserve maritime trade between any two ports in
the country for Malaysian-flagged vessels only.
Abdul Hak said removing the cabotage policy that
protected the interest of local ship owners
would not guarantee lower freight rates for
shipping goods within the country.
“Freight rate is only a fraction of the cost of
the whole supply chain, and a study should be
done focusing on freight rates alone.
“We understand there are some industry players
that are pushing the idea of relaxing or
abolishing the policy to get foreign ship owners
to operate domestically,” he said.
Abdul Hak said that if there were not enough
local vessels to carry goods in Malaysian
waters, local ship owners could ask for domestic
shipping licences to be issued to
foreign-flagged ships.
“However, the recommendation will be only be
granted if MASA cannot find any alternative
vessels among its members in two days, “ he
said. |
