Give us clear guidelines for logistics services: FMFF

PETALING JAYA: The Federation of Malaysia Freight Forwarders (FMFF) are asking for clear directions and guidelines on logistics services, including transport and warehousing that are deemed as essential services, in light of contradicting statements issued by several ministries.

“FMFF cannot provide an accurate reply to members, nor advise them whether they can operate,” said FMFF president Alvin Chua.

He said the situation has been further aggravated with the different interpretations by enforcement agencies when freight company trucks are stopped and their offices are directed to be closed.

“We have written to the Transport (MOT) and Home Affairs (MOHA) ministries to confirm whether we fall under essential services as listed in item 12 issued by the National Security Council (NSC).

“We have yet to receive a reply from both ministries. The Port Klang Authority agrees that logistics services are essential services but the actions of enforcement agencies seem to suggest otherwise.”

Chua said the police had instructed their drivers to obtain a work travel pass as well as to provide proof they have been tested for Covid-19.

“In addition, the police said the drivers and companies need the approval of NSC to transport goods and that only medicine and food may be transported.”

He said this contradicts the Ministry of International Trade and Investment’s announcement to allow logistics services by manufacturers of essential and non-essential goods to continue. However, this was followed with a statement by Senior Minister Datuk

Seri Ismail Sabri Yaakob saying that the companies needed to issue work travel passes to their employees.

“As such, FMFF has written to both MOT and MOHA for approval to issue work travel passes to its members and staff to travel to work, and are awaiting their replies.”

Chua said in the meantime, goods that have been imported before the movement control order have arrived at the 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 the delivered goods to manufacturers and importers.

“Inevitably, consumers will have to bear these additional costs, and manufacturers may face disrupted production schedules and loss of market. Similarly, exports of nonapproved goods cannot be sent to ports for shipment, resulting in cancelled contracts and loss of business,” he added.

Chua said essential goods make up only about 20% to 30% of the total cargo throughput at the port, while the rest are nonessential.

“So, not delivering these may max out the port’s storage capacity and result in a huge backlog of containers,” he said, noting that given the contradicting guidelines, FMFF may end up advising its members to cease operations immediately, until the government is able to approve operations.

“Notwithstanding this, our members will still facilitate transport of medicine, medical products and foodstuff that are essential.”