Malaysian importers are bearing the brunt of the Red Sea shipping crisis, with importers in the chemicals, machinery and automotive industries facing supply chain delays, which has impacted production timelines. Malaysian exporters are generally facing minimal disruption, with moderate freight cost increases. Maybank Investment Bank (IB) research said the overall impact on Malaysia is minimal though compared to the European countries, which depend heavily on Asian exports and bear the the brunt of higher shipping costs. The firm said despite challenges in the supply chain and increased freight costs, Malaysia's trade outlook remains positive and stable. It maintained its "Buy" calls on MISC Bhd and Westports Holdings Bhd. Maybank IB research said the Red Sea shipping crisis will minimally impact MISC due to its focus on long-term charters. Westports on the other hand has experienced minimal traffic slowdown in first half of January, with traffic expected to stabilise as shippers adapt to longer routes. Since Jan 7, 2024, 72 per cent of all Suez Canal's shipping services, including container shipping, dry bulk, and tankers, have been diverted to the Cape of Good Hope due to the Red Sea conflict. This diversion, primarily impacting the Far East to Europe routes, has nearly doubled the voyage time, effectively reducing global container ship capacity by 30 per cent. Global trade routes have been further affected by a significant decline in the Panama Canal transit, with transit capacity having fallen by about 50 per cent due to severe drought in Central America, necessitating a reduction in the number of vessels allowed to pass per day. These disruptions have prompted shippers to reassess their logistics planning strategy, as they shift towards a "just-in-case" approach since January this year. Maybank IB said Malaysian ports have experienced minimal disruptions, with limited impact on trade routes to Europe and the United States. For local exporters, there have been minimal interruptions in export activities despite the crisis. "While there has been a moderate increase in freight costs, it has not reached disruptive levels that would significantly impact local export volumes. Freight rates remain much lower compared to pre-pandemic levels," Maybank IB said in its report today. It explained that on the other hand, local importers, particularly those importing key goods from Europe, such as chemicals, machinery, and automotive products, are experiencing supply chain delays which may affect production processes and timelines for these industries. That said, Maybank IB said there is no expectation of significant increases in freight rates for these routes due to their backhaul nature, except for luxury items like wine and gourmet food, which may be subjected to higher container freight rates. Maybank IB said a recent webinar with chairman of Shipping Association Malaysia and MTT Shipping managing director Ooi Lean Hin also revealed that the disruption is generally positive for the shipping industry. MTT Shipping is the country's largest shipping liner. Global container freight rates, particularly in the Far East to Europe trade lanes, are expected to remain elevated until the end of 2024 if the conflict persists, partly due to higher operating costs incurred by carriers. However, intra-Asia freight rates have remained stable, with minor corrections observed since 2023, indicating resilience in the regional market. Maybank IB research said domestic freight rates have experienced minimal disruptions, with local shippers adopting conservative planning strategies regarding fleet and service expansion amid ongoing challenges. (ICE KUALA LUMPUR)

Fonte notizia: 23 febbraio 2024, Kuala Lumpur