Why must importers bear the cost of port congestion, says tycoon

 

The Malaysian hauliers’ association has disclaimed responsibility for port congestion during the Hari Raya period.

PETALING JAYA: The boss of Mydin hypermarkets has questioned why importers were being penalised for port congestion by having to bear the cost of shipment delays during the Hari Raya period.

Mydin’s managing director, Ameer Ali Mydin, raised the question in the wake of a notice by the hauliers’ association that hauliers would bear no liability for possible congestion because of the Aidilfitri festivities.

Ameer said shipment delays caused increased costs for importers in the form of demurrage, a charge levied by shipowners for a failure to unload the ship’s cargo in a timely manner, and late delivery penalties.

“Congestion happens because of the inefficiency of port authorities and hauliers but why do they blame us?,” he said, adding importers were being unfairly punished by having to bear the cost while they had no control over the congestion.\Ameer claimed this was not the first time hauliers refused to take responsibility and treated importers unfairly, saying the hauliers’ association issued such a notice at every peak season.”

“We have raised the matter with them, but until now, no action has been taken,” he said.

He said consumers would be affected as importers would have to pass on the increased costs.

However, Soh Thian Lai, president of the Federation of Malaysian Manufacturers downplayed the hauliers’ notice, saying it was just a formality in the industry.

“In actual practice, it is dependent on the contract between the shipper (importer and exporter) and haulier on the line of responsibility on claims relating to the delays due to ports, depots and warehouse congestion,” he told FMT.

The secretary of the hauliers assocaition, Mohamad Azuan Masud, said port traffic congestion had been a long-standing problem, especially during festive periods due to the limited manpower during holidays and an increase in traffic volume during these peak periods.

He said he expects “terrible congestion” this year as the government is allowing Malaysians to return to their hometowns for the festivities. - FMT