Hauliers' strike raises fee issue between shippers, shipping lines
Posted on 15 May 2012 - 03:41pm
PETALING JAYA (May 14, 2012): The recent three-day protest by haulage drivers in Port Klang has offered a compelling reason for the government to regulate the set-up and operation of container depot operators across the country, but it also gave rise to another long-standing conflict between manufacturers and shipping players over who should pay for charges at the depots.
The Federation of Malaysian Manufacturers (FMM) reckons that the depot gate charge (DGC) or any other claim by the container depot operators should be borne and absorbed by the shipping lines.
That's because shipping lines are the depot operators' principals and therefore, should be fully responsible for depot operations, it said in a statement recently.
However, the Shipping Association of Malaysia said the DGC is a matter entirely between the depot operators and the shippers (importers and exporters).
Currently, the DGC is paid upfront in cash by haulage drivers for deposit and withdrawal of empty boxes at the depots, but will be reimbursed by their employers (haulage companies) several days later who will then bill the shippers. Depot operators also get paid by shipping lines to store their containers.
"Hauliers do not have any legal standing to pay the depot operators on behalf of shippers and thereafter collect the charges from shippers. Shippers and hauliers are not a party to any agreement for services provided by container depot operators. Shippers merely adhere to the requirement by shipping lines to collect and return empty containers to and from the respective container depots," said FMM.
The federation said it has, through the various channels, raised this issue and concerns with the relevant authorities including the Ministry of International Trade and Industry, Ministry of Transport, Ministry of Domestic Trade, Cooperatives and Consumerism, and recently, with the Malaysian Competition Commission.
"We have highlighted that shippers have consistently been subjected to numerous unfair charges and fees by the logistics service providers that have contributed to increasing the cost of doing business. While the authorities have studied specific aspects of the issues over the years, a resolution has not been so readily forthcoming as these ancillary charges fall within the purview of several agencies. A holistic approach to the matter is urgently required," it added.
The federation believes that the move by the government to regulate the depot operators is a step in the right direction to avoid a recurrence of the recent protest.
"Strikes by haulage drivers (that started on May 2) as a result of unilateral demands made by the depot operators affect not just manufacturers, but the economy as a whole given the significance of exports in driving the growth of the economy," it added.
Container depot operators, a vital component in the logistics chain, now fall under the purview of the Klang Municipal Council, which is mainly for licensing purposes. There are no proper authority to monitor their performance, like what the Commercial Vehicles Licensing Board is doing for container haulage operations.