Top 5 Challenges of Haulage Malaysia in 2023

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Challenges Faced by Haulage Company in Malaysia Amidst Evolving Regulations

Top 5 Challenges in Haulage Industry, Container Haulage Port Klang

In recent times, the road has grown increasingly tougher for hauliers in Malaysia, especially those operating in Port Klang, as they are impacted by the new government regulations, leaving them to face challenges that have disrupted our operations, inflated costs, and shorter timelines to complete deliveries. 

1. K2 Adding Workload: Hauliers’ Burden

Export Container, K2 Form, K2 Number

With the recent mandate by the government for full scanning of export containers entering the Free Trade Zone (FTZ) in Port Klang’s Westports and Northport, haulier find themselves burdened with additional responsibilities. Effective since November 15, 2023, every container must now declare the Customs Form K2 before being granted entry. This new regulation has increased waiting time for hauliers as they need to wait for the forwarding agent for the K2 number so they can have access to the port.

Hauliers in Malaysia often face additional workload as they are responsible for inputting the K2 number and any errors that happen can lead to blame on them. However, the dilemma is since the forwarding agents are the one who obtain the K2 initially, why this seemingly simple task is delegated to hauliers in the end? Moreover, staging containers without the K2 at yards leads to additional expenses for security and insurance due to the occupied yard space.

2. The Burden of Rising Wages
Besides, hauliers are burdened with the weight of increased costs as the government recently enforced a minimum wage of RM1,500 for all drivers in Malaysia’s haulage companies. This rise in drivers’ wages adds to hauliers’ costs, straining everyone’s financial position.

3. Maintenance and Repair Costs
The bumpy road of currency fluctuations adds yet another layer of hardship for hauliers. The rising costs of truck maintenance, including parts and repairs, weigh heavily on our shoulders, further diminishing our financial resilience.

4. Factories Delivery Hours Restrictions on Container Haulage

Container delivery restriction to office hours

The strict restriction on delivering containers to factories solely during office hours has created a bottleneck that hauliers must navigate. The resultant traffic congestion places immense strain on these dedicated individuals, forcing us to complete deliveries within rigid timeframes.

5. Rising of Capital Costs on Hauliers Malaysia
The continued inflation and rising costs have again impacted hauliers in Malaysia. Capital costs, including vehicle acquisition, routine maintenance, fuel expenses, insurance costs, equipment breakdowns, and labour costs, hauliers has to bear all of these costs themselves.

A Call for Positive Changes for Container Haulage Port Klang 

Long Overdue Haulier Tariff Increase
For the past 10 years, haulier tariffs have remained unchanged. We recommend a haulier tariff increase of 30%. This adjustment would provide the necessary breathing room to accommodate the additional costs incurred due to the new regulations that are implemented in the haulage industry in Malaysia.

Improve Container Security for Staging
To ensure the safety and security of containers during staging, we propose the implementation of staging equipment, at a cost of RM100 per container per day. This solution offers a secure place and insurance coverage of up to RM100,000, providing much-needed peace of mind to hauliers in Port Klang.

K2 and Verified Gross Mass (VGM) Verification Expenses
Given that the burden of K2 compliance falls on hauliers’ plates, we recommend the introduction of a nominal fee of RM5 per container. This modest amount would help cover the expenses associated with verification, ensuring that hauliers are not left out to bear this weight alone.

Despite the tough road moving ahead, Grab Haulier remains committed to providing reliable haulage services in Malaysia. With these recommendations, we strive to alleviate the burdens weighing heavily on the hearts and minds of all affected parties. Explore our comprehensive haulage services by visiting Facebook page and Grab Haulier website