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The Port Klang Authority (PKA) has decided to
postpone the implementation of the reduced free
storage period from five days to three for
containers at the port to July 1.
It was announced earlier that the new free
storage period was going to be effective on Jan
1.
The window duration is given to importers and
exporters to clear or send their goods to and
from the ports without any charges. After that
period, storage fee will be imposed on a daily
basis per container.
Many quarters of the maritime community in Port
Klang were sceptical prior to the planned
implementation on Jan 1 as there were problems
that needed to be ironed out.
The Federation of Malaysian Manufacturers had
said that until all parties in the logistics
chain were ready and all document delivery
systems upgraded to paperless transactions, the
implementation of the shorter free storage
period should be deferred.
Northport and Westports said in a joint
statement that they had decided to defer the
implementation by six months after taking into
account the current economic condition and the
appeal by several trade associations.
“The industry needs a bit more time to adjust to
the reduction (from five days to three),” they
said.
The ports have advised all parties to be ready
by July 1, as these changes are expected to
improve further the efficiency level of the port
operators and conform with the international
standard for free storage days.
Selangor Freight Forwarders and Logistics
Association president Abel Tan Ah Beng said the
deferment was timely due to the financial burden
and sales drop faced by local manufacturers as
well as importers due to the current economic
downturn.
“We are monitoring the percentage of goods
cleared within three days at the port since
November.
“But that may not give a clear picture until
trade picks up to normal levels,” he told
StarBiz, adding that the volume of goods at Port
Klang had been dropping by 20% to 30% monthly.
Before July, he said, all parties in the supply
chain should be getting familiar with the
standard operating procedures pertaining to the
reduced free storage period.
“But nobody knows whether trade will pick up by
July,” he said.
Wednesday January 7, 2009
The Star - BUSINESS |
