It is reported that shipping agencies in Port Klang have recorded 30% to 40% drop in volume year-to-date against last year and are implementing strategies to continue doing business under the current weak market.

Mr Abu Bakar Hussein president of Central Region Shipping Association said that “As with any other industries, shipping agencies are also affected by the global economic downturn as we are directly impacted by the plunge in demand of goods.”

Mr Abu Bakar while speaking to StarBiz at a CRSA event said that to stay afloat in the prevailing market condition, CRSA members had adopted strategies such as reducing costs and increasing productivity, and most had come up with contingency plans to ensure their survival.

He said that “Unfortunately a small percentage of our members had to cease operations adding that human resources remained the biggest costs.”

Mr Bakar said that it was difficult to predict what would happen, going forward. The same people that predicted the gloom and doom of the industry a few months ago are now giving a positive outlook.”

According to some reports, the industry has to remain prudent in the next two to three years. But most importantly, he said, the industry had to maintain its efficiency to continue to attract investors and shipping companies to Malaysia.

Mr Bakar said that “Basically, our principals (shipping firms) are looking at efficiency because they also want to reduce costs.”

(Sourced from The Star)