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Selangor Freight Forwarders
and Logistics Association (SFFLA) is concerned
over the industry's readiness for the reduction
in free storage period for containers at Port
Klang.
The free storage period for import and export
containers, currently five and seven days
respectively, is scheduled to be shortened to
three days by July 1.
Last year, the implementation of the
Government-approved gazette was postponed from
Jan 1, 2008 to July 1 by both Westports (M) Sdn
Bhd and Northport (M) Bhd.
Under the new instruction, port operators will
have to start imposing storage fee for the space
rendered from the fourth day onwards. Shipping
lines will also charge demurrage fees for the
containers used by importers.
SFFLA president Tan Ah Beng said the reduction
in the free storage period should be postponed
further until all parties in the logistics chain
changed their standard operating procedures to
accommodate the new rules.
“If not, exporters, importers, forwarders and
ultimately, consumers, will have to bear the
brunt of absorbing the storage and demurrage
fees.
“Why should they be penalised following any
delays made by other parties along the supply
chain due to the shorter storage time? I don't
understand why the new rules have to be
implemented so urgently as both ports are not
congested,” he told a press conference recently.
Tan said only ports and shipping lines would
benefit from this new ruling.
“Based on the average of 3.5 million import and
export containers handled at Port Klang
annually, and the increased storage fee that
will be collected as a result of the new rules,
both ports are expected to gain extra income of
about RM35mil each,” he said.
As far as freight forwarders as concerned, Tan
said, they were prepared for the shorter storage
period but the concerns were raised because some
players in the supply chain were not ready.
“This is based on the input from our members
that deal with almost all players along the
supply chain,” he said.
According to Tan, shipping agencies, Customs and
other related Government agencies are seen as
not being ready for the implementation of the
three-day free storage period.
In a statement, SFFLA said shipping agents
sometimes failed to submit inward manifests to
the Customs or Free Zone Authority within the
stipulated time due to early vessel arrival,
especially those from the Asean region.
“Hauliers also require a 48-hour notice to
ensure that containers will be delivered and
taken within the free storage period. Dutiable
goods that need Customs' release and goods that
require inspections by other Government agencies
also take time to complete the process,” it
said.
Tan said this was due to the mainly manual
processes still being practised in Port Klang.
“Different parties in the supply chain use
diverse systems that do not interact online or
automatically with each other.
“The new rules should be postponed until the
proposed National Single Window, that will
connect all players under one system, is
introduced; a thorough study is done on the
matter; and all related players in Port Klang
improve the operating procedures,” he said.
He added that the association also regretted the
fact that the Port Klang Authority had advised
the Transport Ministry to approve this change
without having conducted an in-depth
consultation with the industry. |
