Stop ‘pussyfooting’ with errant shippers, forwarders urge Putrajaya

PUTRAJAYA has to move in to protect the interests of importers and exporters and act aggressively against errant shipping lines, the Federation of Malaysian Freight Forwarders (FMFF) said, after a company had been found charging a slew of extra fees.

“We strongly urge the relevant ministries and agencies to stop pussyfooting with shipping lines and start protecting the interests of our importers and exporters. This time, it really is enough,” FMFF president Alvin Chua said.

The Ministry of Transport and Port Klang Authority had declared that container deposits would no longer be needed from March 1 onward and three instruments would be availed for shipping lines to choose from: SFFLA NCD (Non-Cheque deposit), D&D CLA (Container Ledger account) and icargo+, for shipping lines to choose, in lieu of container deposit requirement.

According to Chua, the SFFLA NCD scheme was also revised based on requests and feedback from shipping lines to offer them added comfort and protection, and the final standard operating procedures (SOPs) for the NCD scheme were adopted, after nearly two months of review.

But Chua said that there were already shipping lines not adhering to the SOPs. He named Cosco Shipping Sdn Bhd (Coscon) which required an additional letter of indemnity (LOI) from both importers and forwarding agents.

This was “contrary to what was agreed that no LOI was necessary anymore,” he said, adding that this has “upset the forwarding community and importers.”

Chua also said Coscon implemented “a slew of charges”. These include:

i) late D/O payment – RM100.

ii) Bounced cheque, penalty charges – RM100 each time (in addition to BNM charges)

iii) Wrong/over-payment, double payment, under-payment – RM50 each time.

iv) Customer Profile re-activation charge – RM500.

v) Cheque validity period reduced from six months (BNM) to four months.

“FMFF’s stand is that these unfair practices and charges have been imposed without consultation with the stakeholders and also against the grain of best industry practices,” Chua said.

Believing that Coscon had abused its “dominant position,” Chua urged the Malaysian Competition Commission to move in and investigate Coscon’s business practices.

“If the situation is not quickly contained, other shipping lines would be emboldened to come up with similar unfair practices and charges,” he said.

Chua also went on to list Taiwan-based Evergreen Line and New Star Agencies, which acted on behalf of Israeli shipping company Gold Star Line, for imposing “unjustified and unwarranted” charges.

He called on the government to investigate these complaints before “the situation gets worse.” Chua cited Sri Lanka where the country issued a decree that all landside charges be incorporated into freight charges.

“And all the shipping lines calling Colombo Port toed the line. And none of those shipping lines cancelled their services to Colombo Port. In fact, the throughput at the port has increased,” he said.

Shipping agents, too, are licensed under Section 90 of the Customs Act 1967. Chua said FMFF had proposed that the Customs Department set conditions on charges and best practices when renewing shipping agents’ licences.

“They must remind the shipping lines that if they want to operate here, they have to toe the line,” he said. – July 2, 2020

Subscribe and get top news delivered to your Inbox everyday for FREE