Shipping industry embraces digital and innovative solutions

LABUAN: The Container Ledger Account (CLA), Non-container deposit (NCD) scheme, and iCargo+ have garnered widespread approval and rapid adoption within the shipping industry, marking a significant leap towards digitalisation and operational efficiency.

D&D Control (M) Sdn Bhd corporate communication executive Adilla Yunos said over 90 percent of industry participants have embraced these innovative alternatives and emphasised the transformative impact of the NCD scheme that has eliminated deposits amounting to hundreds of millions in ringgit.

The CLA is a payment assurance solution provided by D&D Control (M) Sdn Bhd since 2019 while the NCD is a guarantee scheme provided by the Selangor Freight Forwarding and Logistics Association (SFFLA) since 2010 and ICargo+ is an insurance product that covers both cargo and container provided by Quantum Ivory Sdn Bhd since 2017.

D&D Control, as an agent for billing and collection of container incidental charges, introduced the CLA, which has received endorsement from the Ministry of Transport and strong support from Malaysian port authorities, trade associations, chambers, and domestic logistics players.

Adilla highlighted that in 2019, the Federation of Malaysian Freight Forwarders (FMFF) reported an annual container deposit of over RM870 million, incurring additional interest costs of RM13 million annually.

“The CLA not only addresses this challenge but also ensures a more secure, transparent, and faster payment process through its portal, bearing the tagline 'simplifying logistics payment,” she said in a statement to Bernama today in conjunction with the Labuan Freight Forwarders Association (LFFA) Appreciation and FMFF Welcome Dinner on Friday night (March 1).

She said that the CLA sets a new standard for shipping transactions, not only in Malaysia but potentially in Philippines, Thailand, Vietnam, and Indonesia. “With endorsements from FMFF and the Asean Freight Forwarders Association (AFFA), the digital solution provides payment assurance to shipping agents, exempting consignees and their forwarding agents from traditional container deposits,” she added.

Adilla said the CLA has been accepted by 78 shipping agents, non-vessel operating common carriers (NVOCC), and freight forwarders in Malaysia. The digital platform, CLA Portal, streamlines logistics payments, reducing procedures, time, and costs, ultimately contributing to lower logistics expenses, she added. -Bernama