Containers are stacking up in ports due to MCO

CORONAVIRUS | Containers in Port Klang are stacking up due to the movement control order limiting the transport of non-essential goods.

The Federation of Malaysian Freight Forwarders (FMFF) has warned that this was a potential "time bomb" affecting port efficiency and capacity.

Each container that could not be delivered would incur demurrage, storage and removal charges, adding to the final cost of input, which would be passed on to consumers.

Port Klang Authority (PKA) chairperson Ean Yong Hian Wah said currently, Westport is at 67 percent capacity while Northport is at 47 percent.

He said that both ports would be able to take on more containers even if the MCO was extended to April 14.

Ean Yong said port operators have also prepared two parcels of land that could take on an additional 25,000 containers at Westport.

Acknowledging the problems faced by freight forwarders, he said the PKA is currently discussing plans on reducing storage fees.

He said PKA has also submitted a list of goods that serve as supporting essential goods to the Transport Ministry last week with the hope that NSC will allow these goods to be delivered on the road.

According to the FMFF, freight forwarders are having problems in moving the containers due to the different interpretations by authorities enforcing hauliers.

FMFF, which represents 1,300 members, said while the logistics sector was listed as an essential service by the National Security Council (NSC), hauliers are being stopped by enforcement agencies for a variety of reasons.

Support pillars of essential industries

Ean Yong urged the government to look into the matter, adding that some essential industries are unable to have supplies delivered due to the MCO.

Many industries, he said, are correlated.

"We cannot just look at one or two single goods and give them clearance (to be transported to another place).

"A manufacturer needs another supporting industry to make the product before it is being distributed to the market.

"For instance, while you need raw materials and other materials, you also need packaging. These industries are not being classified as essential services," he said.

In particular, Ean Yong said the problems faced by food manufacturers should be a priority to ensure a stable supply of food.

"The NSC should prioritise logistics to ensure that supporting industries can supply essential goods.

"Failure might affect the food supply," he said.

On Tuesday, Putrajaya publicly acknowledged that there were disruptions to the food supply chain.

A task force looking into the food supply chain, comprising representatives from the International Trade and Industry Ministry, Agriculture Ministry and Domestic Trade and Consumer Affairs Ministry, has been formed.

The committee will be headed by senior minister Azmin Ali. - Mkini