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Logistic is part of the supply chain process that plans, implements and controls the efficient and smooth flow and storage of goods, services and related information to meet the customers' requirements, from the point of origin to the point of consumption

Wednesday, August 6, 2008

Depot Gate Charge

The Malaysian Container Depot Association (MCDA) has announced that they are imposing a levy of RM 5.00 on shippers for the usage of depot facilities effective August 1, 2008.

According to their Public Notice, this charge is payable by the container hauliers who will then bill the shippers.

The announcement has sparked a strong reaction from shippers and shipping lines who were represented by the Selangor Freight Forwarder and Logistics Association, the Central Region Shipping Association, the Malaysian National Shippers' Council (MNSC), the Federation of Malaysian Manufacturers (FMM) and the International Shipowners Association of Malaysia.

The chairperson of FMM's Logistics Committee, who strongly against the move made by MCDA, has reacted by saying that the proposed fee does not make any sense for the following reasons:
  • Shippers do not have any direct business relation or contractual relationship with the depot operators.
  • It is illegal for the hauliers to collect any money on behalf of others. What ever action they take is their own business.
FMM has wrote a letter to relevant ministries and to the respective port authorities in protest of the DGC and requested the container depot industry to be regulated.

MCDA on their defend for DGC has said that this additional charge is necessary to cover the operational costs (additional manpower and electricity costs) as the depot operation working hour will be extended from the current 12 hours to 24 hours--beyond the depot operators' contractual hour. This minimal charge will be used to increase the efficiency of the depot operation and to provide better facilities.

The International Shipowners' Association of Malaysia (ISOA) in response this matter has clarified that the depot operators' move to impose RM 5.00 fee is a matter entirely between the depot operators and the shippers. Its chairman in his statement has cited charges collected by the airport and by the Penang Port having the same form of fees:
  • Airport imposes airport tax to the airline passengers for transiting and using the airport facilities.
  • The Penang Port charges the general charge of RM 1.40 per revenue tonnage for cargo transiting in and out of port.
The basis for charging DGC, as put out by ISOA, is for maintaining the facility for the merchant's truck to transit in and out of depot.

1 comment:

albina N muro said...

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