2nd June 2008

The Star Maritime

Association tells members not to pay deposits for DO

Selangor Freight Forwarders and Logistics Association (SFFLA) will take legal action against shipping lines and container operators that were recently found demanding deposits from freight forwarders to release the delivery order (DO) document.
 
According to the association, this violated the guidelines set by the Port Klang Authority (PKA) in 2001.
 
The guidelines only require a forwarder to issue a letter of undertaking which guarantees that the forwarder or its consignee will pay for any detention charges or damages to the container when returned.
 
A detention charge is a penalty for late return of the empty container to its owner, the shipping lines or agents. It will take effect after five days. Freight forwarders collect DOs from shipping agents in order to release laden containers from the port.
 
Vice-president Alvin Chua said SFFLA had informed its members not to give any deposits to shipping lines and container operators.
 
“This is in view of the current scenario where a couple of shipping lines have been demanding deposits of about RM300 per container,” he told a press conference recently.
 
Chua said these shipping lines had also ignored PKA's instructions to release the DOs.
 
“Now they are asking for the consignees or importers to clear their goods at the port.”
 
The association said in a statement that forwarders refused to give any deposits to avoid any abuse by shipping lines that usually came up with reasons to retain the deposits.
 
“The usual excuse made by shipping lines is that it's for washing and cleaning fees that vary from RM10 to RM200.
 
“They also often demand compensation for damages that are obviously not made by forwarders or their consignees, including compensation for container floor boards and rusted parts,” it said.
 
“How can consignees and forwarders be responsible for all these damages when we only keep the container for an average of two days?,” Chua said.   

  
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