Shipping lines can no longer collect cheque deposits from shippers

SHIPPING lines will no longer be permitted to collect cheque deposits from shippers, Transport Minister Anthony Loke said on Feb 13.

The lines have the option to utilise the following alternatives instead: non-cheque deposit (NCD) by the Selangor Freight Forwarders and Logistics Association (SFFLA), Container Ledger Account (CLA) and iCARGO+.

The solution introduced by Port Klang Authority (PKA) following engagement with the Federation of Malaysian Manufacturers, Federation of Malaysian Freight Forwarders and other stakeholders is a commendable alternative to the current unfair practices by shipping lines, said The Malaysian National Shippers’ Council (MNSC).

“To shippers, the imposition of container deposit is an unnecessary financial burden as it affects the cash flow of shippers. The Bill of Lading, an agreement between the shipping carrier and the shipper, already provides sufficiently liability clauses that safeguard shipping lines against container damages and losses.

“Further, statistically there are no figures to show any increase in the incidents of missing or late return of containers that justify the imposition of this punitive measures. Therefore, we strongly believe there is no justification to collect container deposits from the Malaysian importers or forwarders,” said MNSC chairman Datuk Andy Seo in a statement.

According to MNSC, shipping lines are currently unregulated and shippers continue to be plagued with arbitrary and unilateral imposition of land-side charges and fees including high terminal handling charges, depot gate charge and very recently the collection of low-sulphur surcharge.

“The announcement today by the government for the shipping lines to consider alternative solutions to container deposit collection is a highly effective measure to address these unfair and unilateral practices by the shipping lines,” it added. – Feb 13, 2020

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