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Masa welcomes dialogue on shipping woes

Malaysian Shipowners’ Association (MASA) has welcomed the recent suggestion by the Minister of Transport for a dialogue with the shipping industry to resolve issues relating to complaints that too many foreign ships are getting approvals to trade in the domestic waters.

Reiterating its position that Malaysian-flagged ships must be given priority over foreign-flagged ships in the carriage of cargoes within domestic waters, MASA said it was ready to provide specific and comprehensive proposals to enhance the process flow leading to the granting of dispensation, or waivers to foreign ships.

As long as Malaysian-flag vessels are able to meet the specific requirements of the charterers, including provide competitive rates, there is no reason why our local owners should be deprived of the opportunities in the domestic trade, said the Chairman of MASA, Ir Nordin Mat Yusoff.

“In this regard too, MASA fully supports the statement by our Prime Minister, YAB Datuk Seri Abdullah Ahmad Badawi, that Malaysian shipowners must also be competitive with foreign lines,” he said.

He said dispensation or waivers for foreign flag vessels granted by the Domestic Shipping Licensing Board (DSLB) must be only on the “last resort” basis.

“The role of MASA is very specific; we offer to circulate, or disseminate information to our members, details of the vessel requirements as required by charterers for the application of licence to the Board,” he said.

“We do not have the right to scrutinize the applications for waivers; only the DSLB has that right and it would be improper for us to usurp that right provided for under the law to the DSLB,” he added.

The MASA chairman said the crux of the issue is whether the DSLB is granting the waivers too freely or liberally as alleged, or whether the Board is granting waivers only because there is inadequate number of Malaysian ships able to meet the demand.

He emphasized that if waivers are not granted to foreign ships after the Board is satisfied that there are no Malaysian ships, it can cause disruptions to our economy and the trade.

MASA reiterated its concern that there was much left to be desired in the manner in which the charterers are forwarding their requests for vessels.

He said there are also instances where charterers provide very little information of their vessel requirements, perhaps deliberately because they know that no one will be able to offer their vessels, even if they had one, based on such sketchy information, sometimes without even details on the profile of the cargo.

He said the Association handled a total of 1831 requests from charterers in 2005 out of which 548 were requests for charters of tankers which were circulated to its members.

“We would like the government to take a re-look at the current practices with a view to improving and expanding the involvement of Malaysian shipowners in the tanker and other sectors of domestic shipping,” he said.

“We are also of the view that the solution to the problem lies elsewhere; charterers must plan their requirements ahead. It is very good management practice and planning if these charterers know of their requirements well in advance before its deployment, however, we need to be practical and realize that there are constraints from business perspective,” the MASA Chairman said.

On the same note MASA would like the charterers, especially the oil majors to review their current practice of seeking vessels on spot basis or at short notices.

He said Malaysian shipowners have proven to be capable of meeting the demand for domestic shipping provided opportunities are available.

He said only a stronger enforcement of the cabotage policy would create the opportunities for Malaysian shipowners and help in fostering the development of a larger and stronger domestic fleet, he noted.

“In this regard, MASA would like to sit down with the Ministry of Transport and other relevant agencies, including the Malaysian Institute of Maritime Affairs (MIMA) to help in the formulation of a comprehensive and an unambiguous national shipping policy,” he said.

               

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