Trade associations express disappointment over dubious charges at Port Klang

SERI KEMBANGAN (Dec 9) : Trade associations led by Malaysia Steel
& Metal Distributors' Association (MMSDA) and Malaysia Hardware,
Machinery & Building Materials Dealers' Association on Friday
expressed their disappointment with the government over alleged dubious
charges that imposed by shipping lines at Port Klang.

The trade associations took to task the Ministry of Transport (MOT)
and Port Klang Authority (PKA) for failing to take the necessary action
to address this issue.

MMSDA president Lim Sin Seong said despite a joint memorandum sent
and the various meetings held with the Ministry of International Trade
and Industry (MITI) and Pemudah, no concrete action had been taken over
the alleged charges imposed, which he termed as “illegal”.

Lim
said that the MOT and PKA had failed to provide necessary regulatory
leadership to regulate issues, and as consignees had to put up with
unfair terms including container deposits and letters of undertaking
imposed by the shipping lines.

"Many shipping lines continue to ignore the container undertaking
scheme proposed by Selangor Freight Forwarders & Logistics
Association (SFFLA) that has been endorsed by PKA earlier.

“These shipping lines are acting in bad faith due largely to the lack
of desire of the PKA to regulate the entire value chain of logistics,"
the associations said in a statement.

According to Leong Yit
Ket, director of commerce & industry bureau of MSMDA, the dubious
charges included RM335 for terminal handling charges charged by the
shipping lines instead of just RM230 charged by PKA for each twenty
footer (TEU) container, collection of "container deposits" of between
RM300 to RM1000 per container, charging a fee of RM130 per Bill of
Lading, and electronic data intercharge (EDI) charge of RM30 levied on
the shipper or consignees.

The association also alleged that
it was illegal for shipping lines to withhold delivery order (DO) after
consignees pay the relevant port charges.

The association wanted the MOT to issue a directive to all shipping lines calling at Port Klang to abide by basic contract law.

They said the MOT and PKA must also regulate the type of charges and
the quantum that the shipping lines can charge to prevent further abuse
by shipping lines.

Shipping lines should submit justifications whenever there are new
charges and new quantum being levied and MOT should exercise its
regulatory rights to overrule unfair and excessive charges, they said.

"With 2 to 3 million import containes coming into Port Klang annually,
every RM100 increase in these dubious charges will result in consignees
and ultimately the industries in Malaysia, having to pay additional
RM200 million.

This will escalate our cost of doing business and make our country uncompetitive," they said.