Malaysian exporters report volatile freight costs

Volatile costs of freight from Malaysia to Europe and the Middle East have been reported, according to the latest International Tropical Timber Organisation market report.

The Timber Exporters’ Association of Malaysia said the average 40ft container freight cost had nearly doubled from US$1,800 in 2008 to US$3,200 in March. Since then costs have dipped to about US$2,800 but are expected to rise after European summer holidays.

A year ago freight costs dipped to US$600.

Association members hope that freight rates could be fixed every three months to bring stability to timber markets. They are nervous about passing on increased costs for fear of losing long-term clients.