English
Malaysia: Export cargo at Penang airport seen contracting
GEORGE TOWN: The volume of export cargo handled at Penang International Airport is projected to contract by 1% to 2% this year from 69, 855 tonnes recorded last year.
Penang Freight Forwarders Association (PFFA) had earlier forecast the volume of export would increase by 5% to 73, 348 tonnes in 2019.
According to PFFA deputy president Jay Shanker, the first half of this year saw the volume of export handled at Penang International Airport dropped by 0.8% to 33, 208 tonnes compared with 33, 476 tonnes achieved in the same period in 2018.
“There is a decline in the export of electronic products. For this reason, we are forecasting a decline this year for the volume of exports, ” he said, adding that finished electronic goods made up about 70% of the export cargo.
“The situation, however, could change if there is a surge in the orders of garment-related products, ” Jay told StarBiz.
In the third quarter, there could be last-minute orders to cater to customers who are stocking up for the year-end festive holidays.
“The suppliers will then have to send the garment products by air to meet their customers’ deadline. Usually these garment products are shipped by sea.
“Given such a scenario, we could see improvement in the volume of cargo exported from Penang International Airport, ” Jay explained.
Meanwhile, competition from Middle Eastern airlines, which offer competitive freight rates operating from KL International Airport, had impacted negatively on the volume of cargo shipped out from Penang International Airport.
“The export figures from Penang would have been higher, if not for this competition, ” he added.
As for imported cargo, Jay pointed out that the volume handled between January to June this year has dipped by 16.5% to 23, 472 tonnes from 28, 103 tonnes in the same period last year.
“Lesser cargo was imported because of the weak ringgit, which made the buying of overseas goods more expensive, ” he noted.
The total volume of cargo exported from Penang International Airport rose by 6% to 69, 855 tonnes in 2018, compared with 65, 774 tonnes in 2017.
“In fact, we projected an 8% increase from 2017, ” he added.
Source: https://www.thestar.com.my/business/business-news/2019/08/05/export-cargo-at-penang-airport-seen-contracting#Dw62dUqy4zKE3Ep8.99