INGENIEUR
Bunkering tanker container ship in port
handling semi-finished products manufactured in the northern region to be shipped to China . The Coronavirus Pandemic . Malaysia enforced a Movement Control Order ( MCO ) in response to the Coronavirus pandemic . During the initial phase of the MCO , port operations were abruptly disrupted as port workers were restricted to their homes . After an intervention by the Ministry of Transport , port operations resumed , allowing freight forwarding , hauliers , and transport services to clear essential and medical supplies . In the later phases of MCO , ports resumed normal operations , allowing all other economic sectors and sub-sectors to resume business . However , cruise ships remain prohibited from Malaysia ’ s ports while crew change procedures are tightly controlled , to avoid the spread of the virus .
Low Demand for Bunker Oil . Although prices have plunged deeply , the demand for bunker oil is still low as shipping lines are cancelling their bookings , now that there is less demand for cargo shipping during MCO . In some bunkering hubs , demand is so low that some oil tankers are being utilised as storage space . In Singapore , heavily indebted oil traders Hin Leong Trading filed for bankruptcy protection after facing a credit crunch
( Rebello 2020 ). The low demand for bunker oil is also affecting the bunkering industry in Malaysia .
Recommendations
These three crises have severely impacted the maritime transportation industry in Malaysia . The following are recommendations for the industry to adapt to the ‘ new normal ’.
Diversified Supply Chain . Impacted by the US- China trade tensions , Malaysia should diversify its economy and not overly depend on any particular supply chain . Manufacturers should produce finished products rather than semi-finished products . Free Trade Zone ( FTZ ), industrial zones , and bonded warehouses should be set up within port limits to remanufacture , repackage , and re-export finished products directly to their destination countries .
Logistics-centric Ports . Ports normally focus on generating container throughput , and their performance can be measured by Key Performance Indicators ( KPI ) such as ship turnaround time , crane movements per hour , and yard utilisation . Ports could learn from
26 VOL 83 JULY-SEPTEMBER 2020