04 July 2021

Haulage companies agree to cease application of port-waiting surcharge from July 5 onwards, say Sarawak Forwarding Agencies Association

SFAA said haulage companies have agreed to cease the application of port-waiting surcharge of RM20 per container from July 5 onwards at Senari Port Terminal. — Borneo Post file pic
SFAA said haulage companies have agreed to cease the application of port-waiting surcharge of RM20 per container from July 5 onwards at Senari Port Terminal. — Borneo Post file pic

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KUCHING, July 4 — Haulage companies have agreed to cease the application of port-waiting surcharge of RM20 per container from July 5 onwards at Senari Port Terminal, said Sarawak Forwarding Agencies Association (SFAA).

Its secretary-general Michael Jin said a meeting was held with major haulage companies last Friday to discuss the port-waiting surcharge which had been imposed by most hauliers since the end of April and the difficulties currently faced by them.

“The implementation of the port-waiting surcharge was due to the persistent congestion issue faced by the haulage companies at Senari Port,” Jin said in a press statement.

According to him, the haulage companies in Kuching complained that they had been experiencing loss of revenue and increased costs due to long waiting times at Senari Port.

As a result, Jin said the hauliers were ‘compelled’ to pass on some of these costs to its customers by way of the surcharge.

During the meeting, the association said the haulage companies had also acknowledged the concerns raised by some customers regarding the surcharge.

“But they informed the SFAA that the majority of the customers have been understanding of their plight and accepted the surcharge as a way to give support to their logistics partners.”

Nonetheless, Jin said the decision by the haulage companies to cease the implementation of the surcharge did not indicate the issues had been resolved.

“The hauliers made it clear that the RM 20 surcharge did not come close to covering their losses, but they have agreed to withdraw its application as a gesture of goodwill in the hope that their plight will be followed up by the related government agencies.”

The related government agencies to be engaged included Malaysian Investment Development Authority (Mida), Ministry of International Trade and Industry (Miti), Ministry of Infrastructure and Port Development Sarawak (MIPD) and Ministry of Transport, as well as stakeholders such as Sarawak Chamber of Commerce and Industry (SCCI), Kuching Chinese General Chamber of Commerce and Industry (KCGCCI), Sarawak e-Commerce Association (SEGA), Sarawak Manufacturers Association (SMA) and Federation of Malaysian Manufacturers.

Jin said the related agencies and stakeholders would have to act and oversee that the persistent port congestion and shortage of reliable port equipment is resolved.

“While the SFAA applauds the Kuching Port Authority (KPA) for having taken action to resolve many of the issues which arose in March, we believe that there is still room for much improvement, especially in terms of the cargo handling equipment.

“We hope that the KPA can continue to demonstrate its commitment to resolving these issues,” said Jin. — Borneo Post




Source: Malay Mail

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