PORT Klang Authority (PKA) announced that the long-standing issue of deposit collection for import containers in Port Klang and other Malaysian ports is now resolved with the adoption of non-deposit schemes.
In a statement on Feb 18, the port authority said it will issue a circular on the details of adopted schemes outlining the standard operating procedures (SOPs) which will come into effect on March 1, 2020.
PKA said the adoption of the non-deposit schemes was announced by the Minister of Transport at PKA’s CNY open house on Feb 13.
“In urging all parties to take advantage by subscribing to these schemes, the minister reminded merchants and forwarding agents that they will otherwise be subjected to container deposits unless they have negotiated other arrangements with shipping lines,” it added.
It said shipping lines imposed deposits on merchants or their forwarding agents as a payment assurance for not returning the empty containers promptly or for damages caused while the containers were in their custody.
“The move was seen as a financial burden on the importers and their agents and indirectly led to an increase in business cost,” PKA pointed out.
Last year, the Transport Ministry and PKA coordinated several meetings to pursue an amicable solution among stakeholders.
In December 2019, the National Logistics Task Force chaired by the Minister of Transport, whose members include associations representing shipping companies, importers, exporters and forwarding agents agreed to adopt three schemes in lieu of container deposits.
The alternatives instruments are non-cheque deposit (NCD) by Selangor Freight Forwarders and Logistics Association (SFFLA), Container Ledger Account (CLA) and iCARGO+ . – Feb 18, 2020