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Port Klang's three-day free
storage period for import containers, scheduled
to be effective July 1, should not be further
postponed in line with the just-in-time practice
(JIT) that advocates efficiency, said a
prominent industry player at Port Klang.
He noted that the implementation of the
three-day free period for containers at Port
Klang had been postponed for three years.
“Now, they (the freight forwarders) have asked
for a further delay of the implementation. Is
there a justification for yet another delay?” he
asked.
Last month the Selangor Freight Forwarders and
Logistics Association (SFFLA) expressed concerns
over the industry's readiness for a reduction in
the free storage period for containers from five
days to three days.
He said it would be in line with best industry
practices of JIT whereby factories could operate
at optimum levels and their inventories were not
held up in many places.
“In Singapore, the storage period is only two
days and in Malaysia, 95% of our containers
leave the port within three days. As such, the
Ministry of Transport and Port Klang Authority
made a decision in 2005 to reduce the storage
days to three and five days for import boxes and
export boxes, respectively,” he said.
He said the remaining 5% was usually due to
cargo owners not being able to complete the
documents and sometimes due to a lack of funds.
“I feel that shipping lines, ports, hauliers and
Customs are all ready except the freight
forwarders, who were only complaining about 5%
of the containers,” he said.
He added that there were 50 active haulage
operators now compared to five companies
previously, hence guaranteeing efficient
services for the customers.
“Also, the Royal Malaysian Customs has improved
by leaps and bounds,” he said.
Previously, freight forwarders could not process
cargo documents over the weekend but now,
Customs accepts pre-payments based on vessels'
estimated arrival time and not on actual time of
arrival.
“This gives everybody the opportunity to clear
the documents and make payments long before the
vessel arrives.
“After all, import or export doesn’t take place
within a week and is known to all shippers
months ahead of time,” he said.
He said shipping lines were not only concerned
with turnaround of vessels, but turnaround of
containers as well. Containers, which cost only
US$1,200 each previously, now cost US$3,000.
“Therefore, they don’t want the containers to
stay in the port too long as Malaysian shippers
are also known to hold their boxes at the
factories for 10 to 15 days.
“Shipping lines find that turnaround of their
containers is much faster in other countries and
they like to see an improvement in the process
in Malaysia,” he said. |
