Port operator absorbs sugar surcharge to avoid shortage

LABUAN: Labuan Port ( Labuan Liberty Wharf) operator, Labuan Port Management Sdn Bhd ( LLPM), has agreed to absorb the RM500 sugar surcharge on each 20foot container for shipment to Labuan to help avoid sugar shortage here.

A customer advisory on the Labuan Emergency Congestion Surcharge was issued on Oct 8 by shipping companies to inform the revised surcharge on laden containers ( 20ft and 40ft) of RM500 and RM1,000 respectively for shipments to and from Labuan port.

Labuan Domestic Trade and Consumer Affairs Ministry Director Arun Fazhillah Hamdan said the decision by LLPM would greatly help maintain sufficient supply for both consumers and traders.

“The decision to absorb the surcharge was made during a meeting on Friday with port users and the port operator in the interest of the island’s economic activities.

“In actual fact, it was not necessary for LLPM to absorb the surcharge.

It was a commendable initiative taken by the port operator for the interest of the people and the business community,” he told Bernama here yesterday. Arun Fazhillah stressed there was a possibility that a sugar crisis would occur if importers decided not to bring in sugar due to an estimated loss of RM0.02 per kilogramme due to the surcharge.

He said the ministry was not worried about shortages of other essential items such as cooking oil, as that was a controlled item coming from mainland Sabah through roll- on roll- off (ro-ro) ferries, while flour came directly from Sabah Flour and Feed Mills Sdn Bhd’s factory in Labuan.

He said operations to check on any indiscriminate increase in goods prices were conducted on Friday and would continue until the surcharge was lifted.

Arun Fazhillah reminded traders, including supermarkets and hypermarkets, not to simply increase prices as not all essential items came through the Labuan Liberty Wharf but from the ro-ro ferries.

“Traders must justify with calculations on any price increase within 14 days following the surcharge.

“Any traders found to increase the price of goods indiscriminately will be charged under the Price Control and Anti-Profiteering Act,” he added.