Gulf carriers causing Penang cargo decline

Middle East cargo carriers at Kuala Lumpur International Airport (KLIA) are influencing the local air cargo business, according to the Penang Freight Forwarders Association (PFFA), which says more shippers and forwarders are sending their cargo through KLIA instead of the Penang International Airport because the Middle East carriers’ rates are cheaper.


Gulf carriers causing Penang cargo decline


Middle East cargo carriers at Kuala Lumpur International Airport (KLIA) are influencing the local air cargo business, according to the Penang Freight Forwarders Association (PFFA), which says more shippers and forwarders are sending their cargo through KLIA instead of the Penang International Airport because the Middle East carriers’ rates are cheaper.

The Middle East carriers have also taken away market share from Malaysia Airlines for long-haul routes. “MAS and its joint-service cargo carriers are also sending their cargo to Kuala Lumpur to be exported as they don’t have enough wide body aircrafts servicing with frequency the cargo sector from Penang to the United States, Europe, and the Middle-East,” said PFFA chairman P Kalimuthu in a StarBiz report. “There are premier airlines with wide-body aircraft servicing the cargo sector from Penang to overseas destinations, but their rates are not competitive,” Kalimuthu added.

Kalimuthu said there were a growing number of exporters from Penang sending their cargo via land route to Kuala Lumpur to be flown out of the country. Trucking charges from Penang to Kuala Lumpur are around RM0.20 (US$0.05) to RM0.40 per kg, compared to the air freight charge of RM1.06 per kg to ship cargo to Kuala Lumpur from Penang.