Freight forwarders cry foul over contradictory instructions

Freight forwarders are calling for clarity because their members are facing inconsistent enforcement efforts by the authorities.

In a statement today, the Federation of Malaysian Freight Forwarders (FMFF) said the government should clarify if logistics services are considered "essential services".

FMFF president Alvin Chua said there are contradictory instructions by different government ministries, leading to confusion by the transport and warehouse service providers as well as different interpretations of these instructions by enforcement agencies.

Chua said FMFF has written to both the Transport Ministry and Home Ministry for clarity but to no avail.

"Port Klang Authority is in agreement that logistics services are essential services but the actions of enforcement agencies seemed to suggest otherwise.

"Our trucks have been stopped and were told to abide by the following by the police manning roadblocks, (that the) driver must have work travel pass and provide proof that they have gone to government clinics/hospitals for testing of Covid-19, with the necessary endorsement/stamp by the clinic/hospital, (and) that drivers or companies need approval from NSC to transport goods, (and) that only medicine and food can be transported.

"These confusing and contradictory actions and requirements are overwhelming and contradicts to the announcement by MITI (International Trade and Industry Ministry) on the approval for logistics services rendered to manufacturers of essential goods and non-essential goods recently approved by MITI.

"We then have an announcement by the defence minister that we need work travel passes to be issued to staff to travel to work.

"FMFF have written to both MOT and MOHA for approval to issue work travel passes to our members' and staff to travel to work and we have yet to receive any reply from these two agencies," said Chua.

Potential time bomb

He said that the problem is further aggravated by imported goods that arrived before the MCO but are now held up at ports if they are not under the approved list.

He pointed out that each container that could not be delivered incur demurrage charges from shipping lines and storage and removal charges from ports, adding to the final costs of delivery to manufacturers and importers.

Chua warned that consumers would bear the additional costs and that manufacturers may face disruption in production schedules and market loss, among other negative results.

He also reminded that with 80 percent of cargo volume comprised of non-essential goods, the huge volume backlog of undelivered cargo at ports is a potential time bomb that would affect port operations' efficiency and capacity, with ports possibly unable to cope with the large volume of said cargo.

"Logistics is an essential service that underpins the national economy. It is a manufacturing-related activity and the nexus between manufacturing and logistics is clear.

"Taking into consideration all the conflicting and contradicting guidelines, harassment from enforcement agencies and the slow or no response from the relevant ministries that we have submitted our issues, FMFF may be compelled to advise all its members to cease operations immediately until the Government is able to approve and facilitate the operations of the logistics industry.

"Notwithstanding the above, our members will still facilitate clearance and transport of medicine, medical products, foodstuff and any other products deemed to be very essential to the country," said Chua. - Mkini