PORT Klang's three-day free storage period for import containers, scheduled to be effective July 1, should not be further postponed in line with the just-in-time practice (JIT) that advocates efficiency, said a prominent industry player at Port Klang.

He noted that the implementation of the three-day free period for containers at Port Klang had been postponed for three years.
“Now, they (the freight forwarders) have asked for a further delay of the implementation. Is there a justification for yet another delay?” he asked.

Last month the Selangor Freight Forwarders and Logistics Association (SFFLA) expressed concerns over the industry's readiness for a reduction in the free storage period for containers from five days to three days.

Shipping lines are not only concerned with turnaround of vessels, but turnaround of containers as well.

He said it would be in line with best industry practices of JIT whereby factories could operate at optimum levels and their inventories were not held up in many places.

“In Singapore, the storage period is only two days and in Malaysia, 95% of our containers leave the port within three days. As such, the Ministry of Transport and Port Klang Authority made a decision in 2005 to reduce the storage days to three and five days for import boxes and export boxes, respectively,” he said.

He said the remaining 5% was usually due to cargo owners not being able to complete the documents and sometimes due to a lack of funds.
“I feel that shipping lines, ports, hauliers and Customs are all ready except the freight forwarders, who were only complaining about 5% of the containers,” he said.

He added that there were 50 active haulage operators now compared to five companies previously, hence guaranteeing efficient services for the customers.

“Also, the Royal Malaysian Customs has improved by leaps and bounds,” he said.

Previously, freight forwarders could not process cargo documents over the weekend but now, Customs accepts pre-payments based on vessels' estimated arrival time and not on actual time of arrival.

“This gives everybody the opportunity to clear the documents and make payments long before the vessel arrives.

“After all, import or export doesn’t take place within a week and is known to all shippers months ahead of time,” he said.

He said shipping lines were not only concerned with turnaround of vessels, but turnaround of containers as well. Containers, which cost only US$1,200 each previously, now cost US$3,000.

“Therefore, they don’t want the containers to stay in the port too long as Malaysian shippers are also known to hold their boxes at the factories for 10 to 15 days.

“Shipping lines find that turnaround of their containers is much faster in other countries and they like to see an improvement in the process in Malaysia,” he said.


The Star, 09.06.2008