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Industry players have mixed views on the
reduction of free storage period for
full-container load at Port Klang to three days
from five that came into effect on Jan 1.
It now means that containers, regardless of
whether they are for export or import, are only
given three days without charge at Northport and
Westports.
The idea, mooted by the Transport Ministry in
2002, had seen numerous postponements and
deferments.
The last deferment was made in June last year by
the Port Klang Authority (PKA) due to the global
economic downturn.
However, for the implementation this year, PKA
had taken into consideration some of the
concerns raised by the port users.
For example, it has directed the two terminals
to calculate the free storage period based on
hours (72) instead of days, and to waive the
storage charges if delays are caused by Customs,
other government agencies, or the terminals
themselves.
The terminals were also told to maintain the
five-day free storage period until Dec 31 for
shipments from Asean ports.
MultiCargo Express Sdn Bhd chief operating
officer Robin Hoh said the reduction in the free
storage period was good as it would enable Port
Klang to function more efficiently.
“This has been practised in most European
countries for quite some time now whereas
certain countries only give consignees a day to
clear their cargo,” he told StarBiz. “Also, the
turnover will be faster, thus profiting not only
the carriers, but the ports and depots as well.”
“But, if we want this implementation to be
successful, all related bodies for the clearance
and delivery of cargo must be more focused and
committed,” Hoh added.
On the expected challenges of the new ruling, he
said that on festive holidays, all departments
and authorities from the points of entry to exit
must be highly efficient to run things smoothly.
“In this case, pre-submission of documents for
cargo clearance should be practised,” he said.
Transways Logistics (M) Sdn Bhd president and
chief executive officer Edward Chan supported
the shorter free storage period but thought the
timing of the implementation was wrong.
“We are still recovering from the global
economic downturn. Furthermore, some types of
cargo need more than three working days to be
cleared.
“For example, for import cargo, before we can
pay the duty, we have to calculate and confirm
with our clients. And sometimes cargo needs
approval from some government agencies that may
take more than three days,” he said, adding that
about 30% of the cargoes handled by Transways
were cleared in two to three days.
Another logistics player also said the
implementation at this point of time was
inappropriate as it would hurt the businesses
and their clients.
Meanwhile, Wilhelmsen Ships Service managing
director Winston Loo said shortening the free
storage time was a positive move.
“It should make the entire logistics chain more
efficient. And, in doing so, would further
improve Port Klang’s competitiveness in the
region,” he said.
Loo also believed that sufficient time had been
given to all stakeholders to re-engineer their
processes to meet the new ruling.
“Thus, while we do expect some hiccups, I
believe all the stakeholders will be able to
overcome the shortcomings,” he said.
Source: The STAR
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