The Logistician - Vol 40

Friday, 23rd November, 2002

The official newsletter of the Logistics & Supply Chain Management Society.
http://www.lscms.org

- Automated Manifest System implemented by U.S. Customs
- Best Education Provider - ASIA
- Malaysian importers unhappy over increase

Automated Manifest System implemented by U.S. Customs

U.S. Customs has announced the implementation of new AMS (Automated Manifest System) rules which will require Shipping Lines and Logistics companies acting as carriers (NVOCCs) to present manifest information to U.S. Customs for all U.S. bound shipments/containers 24 hours prior to sailing at port of origin.

This new rule will come into effect as of December 2nd, 2002.

Other maritime port security bills and homeland security initiatives are still pending, which could bring further changes to logistics processes.

It is also expected that the U.S. Customs and the U.S. Census Bureau will announce similar changes for export shipments/containers leaving the United States at some point next year. For U.S. Exporters, it is expected that U.S. Customs might eliminate Option 1, 3 & 4 for AES (Automated Export System) filings. This will require that all commodity data must be available before sailing, which is the requirement of Option 2 filing.

There is a good possibility that these new changes, especially in the early stages of implementation, could disrupt and delay Supply Chains regardless of whether importing to, or exporting from, the United States, and shippers are advised to take these possible delays into consideration in their logistics planning.

To help minimise any additional delays, existing documentation processes should be reviewed and we should ensure that shipping documents - like commercial invoice and packing lists - are available and accurately filled out at port of origin.

Best Education Provider - ASIA

Following on the heels of the announcement last week that The Logistics & Supply Chain Management Society has been nominated Best Education Provider - ASIA in the upcoming Asian Freight and Supply Chain Awards, L&SCMS which conducts courses and programmes from the Australian Logistics Academy recently announced that its Advanced Diploma students can now progress on with exemptions into MBA programmes offered by a leading Australian University.

"ALA programmes have always been widely accepted and recognised worldwide, and many Universities accept the award at advanced standing at undergraduate level and direct entry into Masters programmes. It has now gone one step further where exemptions are given at MBA level." Prof. Raymon Krishnan, President of the Society noted in his keynote address to the latest batch of graduates in Vietnam. "There have been a number of Johnny-come-lately's' recently in the market flogging programmes. Members of the Persatuan Logistiks, Selangor dan Kuala Lumpur in Malaysia whose leadership comprise of ex-employees and students are one example. Another would be the Federation of Malaysian Manufacturer's who recently launched a Diploma where the Logistics modules mentioned in the brochure share a striking resemblance to ALA modules." He ended this section of his address by saying that "imitation is the best form of flattery."

The latest batch of graduates are joining the ranks of hundreds of ALA graduates throughout the world who are employed at all levels and functions of the Supply Chain Spectrum, many of whom go on to complete higher awards.

Malaysian importers unhappy over increase

An increase of RM30 (US$7.89) in documentation fees charged by shipping lines could see Malaysian manufacturers stop clearing their shipments from local ports.

A report in The Star newspaper said that, if left unchecked, such a move could lead to a cargo pile-up at terminals and result in outstanding port storage charges.

Manufacturers are refusing to pay the charge being demanded by foreign carriers and have also sought the support of their forwarding agents to stop making payments on their behalf to the lines' local offices.

From the beginning of the month, lines belonging to the Intra-Asia Discussion Agreement raised their delivery order and bill of lading fees to RM80 from RM50, leading to a furor among local shippers, who say such a rise is unjustified.