Freight forwarders impose surcharges

Freight forwarders impose surcharges
10 June, 2008

(NST) - The Penang Freight Forwarders Association (PFFA) will impose a surcharge of between 20 and 40 per cent on its rates.

PFFA president Joachim Loo said the surcharge was with immediate effect.

He said the fuel adjustment factor (FAF) would be 20 per cent between the north and central regions, while a 40 per cent surcharge would be imposed for trips between the north and southern regions, including Singapore. The FAF to Thailand will also be at 40 per cent.

"This is a reasonable increase. We are merely recovering our fuel cost and not making any profit from the increase," he said here yesterday after a meeting with major transporters in the state.

He warned that the surcharge might be increased if fuel price rose further.

The association is made up of 118 members.

Loo, who is also the Federation of Malaysian Freight Forwarders president, said the surcharge rates in Penang would be used as a benchmark for other states.

Loo said although members received between 1,000 and 2,900 litres of subsidised diesel a month, this constituted only 10 per cent of their total use.

The volume of subsidised diesel is based on the tonnage of the lorries.

"We appeal to the Transport Ministry and other ministries to assist us by exempting road tax and increasing subsidies."