Port freight volume in Malaysia surged, and international shipping will continue the trend next year.

(Kuala Lumpur, 18th) In the face of the ongoing issue of port congestion, Malaysia's main ports have seen a surge in container throughput.

In terms of general cargo, Westports Holdings also handled 9.02 million metric tons of dry bulk and commodities during the same period, including steel products, soybeans, corn, fertilizers, coal ash, etc.

As for Northport in Port Klang, it also achieved a new high this year, with a total of 3.33 million TEUs processed as of November 27, while the volume of general cargo reached 11.42 million metric tons, also breaking records.

At the same time, market analysts also predict that the global increase in demand for shipping, driven by factors such as the potential tariff policies of the incoming US President Trump, will continue the trend of rising shipping costs and expenses until 2025.

International shipping company - CMA CGM's Taiwan branch director, John Lin (phonetic), and maritime sector scholar and commentator Nazrul Karim pointed out to the Malaysian National News Agency that many trends significantly impacting the shipping industry in 2024 will continue into 2025.

"This includes the increasing demand for container shipping services in the market, the expansion of shipping volume, operational challenges due to fluctuating oil prices, high labor costs, and the rise in shipping insurance premiums due to geopolitical factors and changes in various shipping alliances."

Among them, China is forced to seek new markets outside the USA, which is one of the driving forces for next year's shipping demand. John Lin pointed out that the tariff policies that Trump may implement against China will prompt China to seek new markets, causing trade routes to shift towards Europe, Southeast Asia, and other regions.

"Facing the problem of overcapacity, China is pushing the country to seek alternative trade markets in the face of the challenge of US tariffs."

Lin also stated that China's competitively priced products, especially affordable electric vehicles, have allowed the country to redirect trade flows to Europe, Southeast Asia, Latin America, and the Middle East.

"If tariffs in the USA and Europe restrict China's exports to these regions, China will shift to other markets. With excess shipping capacity and the realignment of trade markets worldwide, global trade routes will be reshaped."

In addition, Nazrul mentioned that due to route changes caused by geopolitical risks, congested ports, and the rising operating costs due to high oil prices and insurance costs, shipping costs surged in 2024.

"Shipping industry players need to spend more time rerouting around the Cape of Good Hope to avoid the Red Sea and other war-risk areas."

Citing an unnamed report, the Malayan Singapore Press states that current geopolitical tensions are extending the world's shipping time, equivalent to reducing global container shipping capacity by around 1.2 million standard containers.

Nazzri mentioned that while shipping services are affected and shipping volumes are declining, shipping costs have surged, leading to huge profits for shipping companies.

Nevertheless, the Malayan Singapore Press also cites some unnamed shipping industry consultants' forecasts, indicating that supply growth in shipping services will surpass demand growth next year, resulting in oversupply and consequently reducing shipping costs next year.

"According to some shipping industry consultants' forecasts, global shipping volume in 2025 will expand by 8%, but shipping demand is expected to only increase by 3%, indicating an eventual oversupply phenomenon."