GEORGE TOWN, March 10 — The Penang Port Commission (PPC) has activated an emergency monitoring mechanism to safeguard supply chain resilience following conflicts in the Middle East.
PPC chairman Datuk Yeoh Soon Hin said the conflicts in Middle East could affect global shipping and supply chains so PPC has to monitor the potential impact on cargo movements through Penang Port.
He said the military actions by the United States and Israel against Iran has increased concerns over maritime safety and energy supply security.
“The Middle East remains a critical region for global shipping, particularly the Strait of Hormuz, through which nearly one-fifth of the world’s oil supply passes,” he said in a statement issued today.
He said any escalation in the conflicts could affect vessel safety, shipping costs and transit times.
Yeoh said they needed to activate a monitoring mechanism after a board of directors’ meeting recently identified key concerns such as vessel delays, port congestion, rising logistics costs, and heightened operational risks for exporters.
He said several major international shipping lines, including CMA CGM, Maersk, Hapag-Lloyd and MSC, have already begun adjusting their routes due to security considerations.
“In the short term, route diversions will likely result in longer transit times, as well as higher freight rates and insurance premiums,” he said.
He added that prolonged disruptions could lead to congestion at global transshipment hubs and a delay in turnaround of equipment and empty containers.
“This could potentially place pressure on port operations worldwide,” he said.
He said Penang Port will need to strengthen its maritime connectivity within Asean and with Regional Comprehensive Economic Partnership (RCEP) member states to reduce over reliance on sensitive Middle Eastern shipping routes.
“PPC will continue to enhance digital port management systems and work closely with Penang Port Sdn Bhd to prioritise the clearance of essential cargo such as food and medical supplies,” he said.
Yeoh encouraged affected importers and exporters to provide feedback directly to PPC, that will act as a bridge to convey industry concerns to the Ministry of Transport (MOT).
