KUALA LUMPUR: The Federation of Malaysian Freight Forwarders (FMFF) is urging the government for clear directions and guidelines on whether logistic services, including transportation and warehousing, are deemed as essential services.
In a statement yesterday, the federation cited many contradicting statements by different ministries that the former is unable to properly advise its members on whether operations can continue.
Further, enforcement agencies have been stopping FMFF members’ trucks and directing that their offices be closed.
According to the FMFF, the police have also said their drivers must possess work travel passes and also provide proof they have undergone Covid-19 testing. Their drivers and member companies have also been told that they need the National Security Council’s approval to transport goods, and that only medicine and food may be transported.
The FMFF said this contradicts the international trade and investment ministry’s announcement on the approval for a continued provision of logistic services by manufacturers of essential and non-essential goods.
“We have written to the transport and home affairs ministries to confirm whether we are essential services, as in item 12 of the essential services issued by the National Security Council.
“We had yet to receive a reply from these ministries. The Port Klang Authority is in agreement that logistic services are essential but enforcement agencies’ actions seem to suggest otherwise,” said the FMFF, representing over 1,300 freight forwarding companies in Malaysia.
It also noted the defence minister had said companies need to issue work travel passes to employees.
As such, the FMFF has written to the transport and home affairs ministries for approval to issue work travel passes to its members and staff to head to their workplaces, but had yet to get a reply.
“Meanwhile, goods imported before the movement control order (MCO) implementation have arrived at ports. If these goods are not under the approved list, they cannot be moved out from the ports.
“Each container that cannot be delivered will incur demurrage charges from shipping lines and storage and removal charges from ports. This will add to the final costs of delivered goods to manufacturers and importers,” said the federation.
“Inevitably, the final consumer bears all these additional costs and manufacturers may face disrupted production schedules and loss of market. Similarly, exports of non-approved goods cannot be sent to ports for shipment, resulting in cancelled contracts and loss of business.”
It added that essential goods make up only about 20% to 30% of the total cargo throughput at ports, with the rest being non-essential goods. Therefore, not delivering these may max out ports’ storage capacities and result in a huge backlog of containers to be delivered after the MCO.
However, given the contradicting guidelines, harassment from the authorities and the relevant ministries’ lack of response, the FMFF said it may end up advising its members to cease operations immediately, until the government is able to approve and facilitate the logistics industry’s operations.
“Notwithstanding the above, our members will still facilitate the clearance and transport of medicine, medical products, foodstuff and other products deemed as very essential to the country,” said the federation.
