Malaysia to regulate container depot charges
The Federation of Malaysian Manufacturers (FMM) has voiced its support of the Malaysian government's move to regulate depot gate operators and relevant logistics service providers to prevent arbitrary increases and imposition of new charges, as it sought to prevent a reoccurance of last month's strike by freight hauliers' drivers, Seatrade Asia online reports.
The strike was sparked by what they claimed to be an abrupt, arbitrary and unilateral increase in Depot Gate Charges (DGC), imposed by the Container Depot Operators (CDO) and demands that the hauliers pay the charges on behalf of the shippers including manufacturers.
The powerful body reiterated its stand that the DGC or any other claims by the CDOs should be borne and absorbed by their principals, the shipping lines. FMM added that hauliers have no legal ground to pay the depot operators on behalf of shippers to be reimbursed later as shippers and hauliers are not a party to any agreement for services provided by the CDOs.
The federation said that it has raised this issue repeatedly over the years 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. However, while the authorities have looked at elements of its proposals, a resolution has not been reached as the ancillary charges fall within the purview of several agencies. "A holistic approach to the matter is urgently required," FMM said.
"Therefore, the move by the government to regulate the depot gate operators is a step in the right direction if a recurrence of the current problem is to be avoided," it added.
