Srilankan Cargo to undertake export cargo loading

Move burdens freight forwarders with additional cost to conform to ICAO audit recommendations on security

SriLankan Cargo announced it will take over the loading of Export Cargo from June 1, but the move will be an additional burden on freight forwarders, they said.

The decision was taken following “various international audit recommendations,” SriLankan Airlines Cargo notified other airlines and cargo handlers.

However, the company gave an option for cargo handlers to employ their own permanent loaders who should be given safety gear and proper attire.

Sri Lanka Freight Forwarders’ Association Chairman Mohan S. Mohanadas said that it is undoubtedly, an additional cost to the freight forwarders, but added that, there is some justification, as there is a security concern.

“There is a security concern because 300-400 people with just a day-pass load air cargo containers and pallets (unit load devices) inside the security area of the airport,” he said.

He added, the new measure came following the annual security audit done by the International Civil Aviation Organisation, which required the authorities to revise security measures, following the annual audits.

“This is a new development which we did not have at the height of the war,” he stated.

However, this new system requires freight forwarders to employ loaders permanently or, on full time long term contract basis, incurring additional costs, he pointed out.

He further said that these loading personnel should undergo training given by Srilankan Cargo and be properly attired with safety gear. “All these are additional costs to the freight forwarders,” he claimed.

In the alternative, the association has also suggested that SriLankan Cargo instal a larger scanner outside the security area, to scan loaded air cargo containers, so that loaders do not have to enter the security area.

“This way we can stop incurring additional costs and the au- thorities are positive about it,” he commented.

A small scale freight forwarder who wished to remain anonymous said that, because of this new regulation, his company is compelled to recruit permanent loaders or pay a loading charge of Rs 1.20 per kg to SriLankan Cargo.

This would mean that, for every 10,000 kg exported, he has to pay an additional Rs 12,000, which has to be passed onto the exporters.

Then those exporters “go hunting” for lower rates. As a result, freight forwarders would have to resort to undercutting, thus shrinking their profit margins at the same time, he said.

SriLankan Cargo spokesperson could not be reached for comment.

Sri Lanka Exporters Association Chairman Mrs. Dawn Austin said that, although she was aware of the new mechanism, the exporters have not raised the issue with the Association as yet.