DIGIVESTASI - The impact of Houthi militia attacks in the Red Sea has also begun to affect neighboring Malaysia. In the neighboring country, the cost of shipping to Europe has increased by 200%. As reported by Free Malaysia Today (FMT), Wednesday (3034/01/24), container transportation rates from Port Klang in Selangor to Rotterdam in the Netherlands reportedly increased by 200%.

For security reasons, Malaysian ships must take the long route via the Cape of Good Hope in South Africa. 
Since November, Houthi militia attacks on various commercial vessels in the Red Sea have forced major shipping companies from around the world to take routes across Africa, including Malaysia.  According to FMT, logistics costs for transportation from Port Klang to Rotterdam, the most important port in Europe, will increase significantly from December 15 to 31, 2023 and from January 15 to 30, 2024. 

The cost of transporting a 20-foot container rises from $975 or Rs 15.3 million (exchange rate Rs 15,720) to $3,300 or Rs 51.8 million (238%) per shipment. Meanwhile, the cost of transporting a 40-foot container increased from $1,650 or Rs 25.9 million to $5,100 or Rs 80.1 million (209%).

"Risk, insurance premiums, and diversion of freight increases prices. If consumers stay there, it will impact them," said economist Jeffrey Williams.  According to Jeffrey, up to 15% of maritime trade passes through the Red Sea. Attacks by the Houthi militia are currently disrupting important trade routes, including between Malaysia and ASEAN countries. 

"The Red Sea route is important but uncertain because it disrupts Malaysia's trade. The risk is that this will become a bigger regional conflict. (If this happens) the impact will be even greater," he continued. In retaliation for the Houthi attacks on the Red Sea, US and UK warplanes, ships and submarines launched dozens of strikes across Yemen. This heightened tensions in the regional conflict after Israel battled Hamas in the Gaza Strip.  

In Malaysia, the Federation of Malaysian Manufacturers (FMM) later warned exporters and importers that freight rates could triple this year due to the Red Sea crisis. 

Klang Port Authority director K. Subramaniam said the Red Sea crisis has resulted in fewer ships calling at Malaysian ports. This is because ships spend more time passing through the Cape of Good Hope.  He said the round trip from Port Klang to Rotterdam via the Red Sea and Suez Canal usually takes 65 days. But if it passes through the Cape of Good Hope, the travel time is estimated at 85 days.

"Shippers will have to wait longer for ships to arrive at the port, and containers will also spend more time at the port," he said. "With so many ships departing, we are losing schedules. Cargo is in port longer, creating operational challenges. But we haven't seen that here. A couple or three. It will take effect after one month," he explains. But Subramaniam believes ships can be forced to compete for space to berth and unload. 

The former president of the International Ports Association also believes that if the Red Sea conflict continues into April or May, it will not be easy to pass through the Cape of Good Hope. This is because the winter winds are strong in this region.