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Port Klang Loses Traffic Amid Alliances

Port Klang Loses Traffic Amid Alliances

Five major shipping companies have left behind the Malay Port Klang for Singapore, resulting in lower transshipment throughput, according to Malay Mail Online.

Lower transhipment volumes have affected the two main terminals at the Malay Port Klang.

According to data from terminal operators Northport and Westports, Cargo throughput at Port Klang has dropped by 8.4% per cent in Q2 2017, to around 3 million TEU.

Westports, which controls three-quarters of Klang’s total capacity, saw this year’s cargo volume decline by 7 to 12%. Transshipment accounts for up to 40% of all its containers processed.

But transhipment makes up only about 20% of Northport’s business.

Read a related technical paper by Drewry on how shipping companies form large carrier alliances in order to fill megaships.

The Union of Employees of Port Klang Ancillary Work and Malayan Trade Unions Congress are worried about port workers making ends meet. Overtime work looks as if it may be cut, although port workers still have their jobs.

This occurred after five shipping companies restructured routes to fit new alliances in April, 2017.

French carrier CMA CGM. China Cosco, Evergreen Line and Orient International operate under the new Ocean Alliance. United Arab Emirate’s UASC merged with Hapag-Lloyd, and operates from Singapore.

France’s CMA CGM along with China Cosco, Evergreen Line and Orient International operated under the new Ocean Alliance while United Arab Emirate’s UASC merged with Hapag-Lloyd, which was already operating from Singapore.

Read more: Westports Holdings has received an in-principle approval from the Malaysian government to expand container terminal facilities at its wholly-owned subsidiary Westports Malaysia Sdn Bhd (WMSB).



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