Goods transport on the rise, but shipping costs on the rise
Freight transport to and from Cambodia has improved significantly since the government decided to reopen the economy in November 2021 after the Covid-19 shutdown.
Sin Chanthy, president of the Association of Freight Forwarders of Cambodia, said Khmer time that the country’s import-export shipments have increased this year due to unhindered transportation, but shipping costs have also increased by 15-20% following rising fuel prices.
He said the transport sector faces three major challenges. “First is the rising cost of shipping to other countries in the region and outside. The second problem is the lack of containers in the ports. The third challenge is the war between Ukraine and Russia that drove up fuel prices,” Chanthy said.
However, he added, “But we think freight transport is going to decline in Europe and the United States, and that will divert trade to that region.”
“Beginning of April 2022, shipping costs increased by 15-20% and as a result, profits declined. Overall, shipping costs are not expected to decrease at any time as fuel prices increase for some time,” he said.
Recently, the Ministry of Works and Transport focused on four ASEAN Framework Agreements to improve regional transport. These agreements include the ASEAN Framework Agreement on Transit of Goods, the Intergovernmental Agreement on the Transport of Goods, the Agreement on Multimodal Transport and the Agreement on Land Passenger Transport.
- Key words: transport of goods, postage