Kuala lumpur: Malaysia's port operators are expected to see significant benefits from trade rerouting and increased transhipment activities despite the ongoing high logistics costs, according to AmBank (M) Bhd chief economist Firdaos Rosli.

According to BERNAMA News Agency, Firdaos highlighted that the geopolitical tensions in West Asia have led to trade rerouting, reinforcing Malaysia's strategic role as a safe and efficient transhipment hub along the Strait of Melaka. This shift is anticipated to support the growth of port activities, although maintaining competitiveness will necessitate continued investments in capacity expansion and strategic infrastructure projects.

Port Klang and the Port of Tanjung Pelepas (PTP) have shown impressive performance, with container throughputs of 15.14 million twenty-foot equivalent units (TEUs) and 14.03 million TEUs, respectively, recorded in 2025. In the first five months of 2026, Port Klang and PTP saw container volumes grow by five per cent and eight per cent year-on-year, respectively.

Additionally, Malaysia is taking steps to strengthen its position as a regional green bunkering hub by adopting alternative marine fuels like liquefied natural gas (LNG) and methanol. Firdaos noted that the government's Green Bunkering Regulatory Roadmap aims for low-carbon fuels to account for 40 per cent of maritime fuel consumption by 2050. PTP has already commenced LNG and methanol bunkering operations.

Meanwhile, the Baltic Exchange Index (BDI) has seen significant increases, surging above 120 per cent year-on-year twice in February and May, and remains high at 64.6 per cent in June. Firdaos pointed out that although freight rates typically drop after temporary disruptions, the current stability in the elevated shipping costs suggests ongoing supply-side issues. He noted that while the conflict in West Asia may no longer directly affect global oil markets, it continues to impact transportation markets, especially maritime routes.