The Cabotage Policy which was implemented in 1980 by the Ministry of Transport (MOT) has been requested to be reviewed. A directive came from The National Logistics Council wants MOT to review the policy and make suggestions in six months.
The policy gives preference to local ships in Sabah and Sarawak to service the domestic trade. However, the small number of these Malaysian-registered ships have fix high rates for their services. According to shippers, the problem arises as the foreign-flagged ships are barred from servicing the domestic trade although the Ministry of Transport's Domestic Shipping Licensing Board can give exemption to foreign shipping lines if there is a shortfall in Malaysian-flagged vessels,
Shipowners seem against the removal of this policy or to further liberalizes the policy. They claim that the removal or liberalization of this policy will not lead to a reduction in freight rates.
The policy gives preference to local ships in Sabah and Sarawak to service the domestic trade. However, the small number of these Malaysian-registered ships have fix high rates for their services. According to shippers, the problem arises as the foreign-flagged ships are barred from servicing the domestic trade although the Ministry of Transport's Domestic Shipping Licensing Board can give exemption to foreign shipping lines if there is a shortfall in Malaysian-flagged vessels,
Shipowners seem against the removal of this policy or to further liberalizes the policy. They claim that the removal or liberalization of this policy will not lead to a reduction in freight rates.
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The Cabotage Policy which was implemented in 1980 by the Ministry of Transport (MOT) has been requested to be reviewed. A directive came from The National Logistics Council wants MOT to review the policy and make suggestions in six months. palletline logistics
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