Regional Pulse: Singapore and US demand fuel Malaysian exports

Freight forwarders with operations in Malaysia report that passenger belly capacity to and from the region remains limited, resulting in high airfreight rates. Despite high volume demand, Ong Chin Kian and Ong Chin Keong, directors and founders of Malaysia-based Transcargo Worldwide, told Air Cargo World that connectivity and capacity remain sufficient. “We are still able to ship," said Ong Chin Kian. “From here to the U.S., we [are] still able to get a space receivable to ship within a week, if you pay express it will arrive within two to three days.” [caption id="attachment_96186" align="alignright" width="500"] Photo: Raya Airways[/caption] Aside from essential goods and pharma, intra-Asia express shipments are growing rapidly as business-to-business (B2B) and business-to-consumer (B2C) retail goods are in high demand, Mohamad Najib Ishak, group managing director at Raya Airways, told Air Cargo World . “Demand for cargo operations is high in Malaysia as the nation continues to be placed under a total nationwide lockdown to curb the spread of the pandemic,” said Najib. “We foresee continued growth in this space to cater to more e-commerce transactions, express deliveries and in supporting small businesses in the country.” E-commerce shipments from Kuala Lumpur to Singapore are especially booming, according to Ong Chin Kian and Ong Chin Keong. “Every day we have shipments for three to 10 tonnes,” said Ong Chin Keong. “Especially in e-commerce cargo, because Singapore people tend to buy a lot of things from Malaysia.” Routes into the U.S. are also in demand, with “sky high” airfreight rates of around $10 per kilogram, they said. “In Malaysia, the biggest export commodity is semiconductors and electronics,” said Ong Chin Keong. “We also export a lot of equipment and machinery. Last year, we also chartered two flights of machinery to Tesla to Fremont, Calif., and this year we are going to [ship to] Tesla [in] Austin, Texas.” Only a few carriers offer freighter flights in Malaysia, according to the Ong Chins, including China Airlines, Korean Airlines, Malaysia Airlines and Cargolux, as well as local carriers like My Jet Xpress Airlines. Raya Airways is also one of the local carriers supporting Malaysia’s booming e-commerce demand, and recently launched a four-times-weekly service into Nanning (NNG), China . While the onset of COVID-19 caused significant airfreight disruptions in Southeast Asia, regional connectivity is expected to recover more quickly than international air travel due to the presence of sizable domestic aviation markets, according to Raya’s Najib. Currently, airfreight capacity from South Asia to Asia has been reported flat month over month from May through July 2021, with accessible capacity on charter flights returning to China after bringing relief goods to the region, according to freight forwarder C.H. Robinson’s monthly airfreight market overview. However, flights from Asia to South Asia are experiencing more strain, according to the forwarder. Regarding South Asia-U.S. connectivity, spot rates have trended up month over month from May through July, although capacity remains flat, according to the update. Meanwhile, U.S.-South Asia routes are experiencing especially strained capacity while spot rates continued a positive trend month over month during the same period.

Regional Pulse: Singapore and US demand fuel Malaysian exports

Exports of semiconductors, electronics, e-commerce drive demand

Cherry charters in decline amid Pacific Northwest heat wave

US airlines embargo select FL cargo operations ahead of Tropical Storm Elsa

US airlines embargo select FL cargo operations ahead of Tropical Storm Elsa

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password