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            september 21, 2019

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Shippers want new MASkargo charges dropped despite rising costs


MASkargo, the freight arm of Malaysia Airlines, is raising warehouse tariffs for the first time in six years, over serious objections of air shippers, reports Free Malaysia Today.
Air freight companies and shippers are seeking a suspension of the new charges by MASkargo, which came into effect last week, predicting that prices of air-flown imported goods could rise by 10-12 per cent.
"We are seeking a meeting with MASkargo and the international trade and industry ministry to stop the increase in charges," said Malaysian National Shippers Council secretary-general Nathan Suppiah.
Mr Suppiah said the prices of salmon, apples and other imported produce could be affected.
MASkargo is the freight arm of Malaysia Airlines. The company announced last month that warehouse tariffs would be raised for the first time in six years.
A terminal charge was raised from 25 sen per kg to 28 sen at KLIA, and from 20 sen per kg to 22 sen at other airports. A special handling fee of 5 sen per kg was introduced, as well as a cold-room charge of MYR1.50 (US$0.35) per kg. These services were previously free for the first 24 hours.
MASkargo chief executive Ibrahim Mohamad Salleh said the increases in charges were necessary because operating costs had gone up since 2013. The new charges would also help the cargo airline recoup investments in cargo handling facilities.

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