Transport Ministry Committed To Resolving Issues Affecting Logistics Industry Says Dr Wee

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KUALA LUMPUR: The Tranport Ministry is committed to resolving issues affecting the logistics industry in Malaysia that impede efficiency and trade flows, says Datuk Seri Dr Wee Ka Siong.
In a post on his Facebook page Sunday (Oct 11), the Transport Minister said he has issued a letter to all parties involved in import transactions by sea in Malaysia, offering them three alternatives to placing container deposits.
The three are either by Non-Cheque Deposit (NCD) Scheme, Container Ledger Account (CLA) or iCargo+.
Container deposit is one of the major issues of dispute between shipping lines and shippers in the country and has been brought to the National Logistics Task Force (NLTF) chaired by the Tranport Minister.
Dr Wee said the relevant communication regarding the above will be made to importers, shipping lines (SL), agents, Non-Vessel Operating Common Carriers (NVOCC) and forwarding agents.
Pursuant to the discussions and decisions made by the NLTF, Port Klang Authority (PKA) has implemented the directives in Port Klang from February 2020.
The alternatives have been well received by domestic logistics industry players and are made available nationwide, Dr Wee added.
On that account, he said it is of utmost importance that all shipping lines as well as NVOCCs come on board with the Ministry to implement these alternatives and put an end to the disputes.
The Ministry also wishes to highlight that engagements and consultations with the logistics industry and assessment on the international shipping practices have been undertaken prior to the implementation of these three alternatives.
The implementation of these alternatives is the first step taken by the Ministry in ensuring fair practices to safeguard domestic logistics players, including taking into consideration the smaller companies’ need for quicker refunds of their deposits in order to aid their cash flow, he noted.
Since its implementation in March 2020,73 out of 259 Shipping Lines/NVOCCs have subscribed to the alternative solutions. Some 516 out of 687 (75%) of Forwarding Agents representing importers have also subscribed to these alternative solutions.
The adoption of these alternative schemes has resulted in the diminution of deposits of about RM968mil to Forwarding Agents and importers,
Dr Wee said both PKA and the Ministry look forward to the support of all relevant parties towards an amicable resolution to the long-standing practice of deposit collection.
Based on experience in Port Klang, he said the scheme will be extended to other ports nationwide to ensure uniform implementation throughout the country.



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