Logo of Phnom Penh Post newspaper Phnom Penh Post - PAS extends export-container demurrage

PAS extends export-container demurrage

Content image - Phnom Penh Post
Sihanoukville Autonomous Port handled 641,842 twenty-foot equivalent units (TEU) last year, up by 0.41 per cent over 639,211 TEUs in 2019. PAS

PAS extends export-container demurrage

Sihanoukville Autonomous Port (PAS) is extending the storage grace period from five to seven days from October 1 for export containers passing through the Kingdom’s sole deep-sea port, in a move met with generally positive response from local exporters.

The two-day extension of the demurrage-free period was motivated by a meeting between PAS and representatives of shipping companies back in August 30, the state-owned enterprise (SOE) said in a statement signed by deputy director-general Thai Rithy.

The grace period starts from the day the container arrives, and lasts until the time of the ship’s departure, PAS said, adding that the adjustment aims to support business and trade, and address some of the challenges faced by the field of transportation and logistics.

Chan Pich, general manager of rice exporter Signatures of Asia Co Ltd, said the decision would partially ease the burden for exporters.

He noted that it was not uncommon for ships to fail to pick up their cargo within the allotted five-day period. “Now we’ll be able to leave containers there free for two more days, which will help reduce our costs in part, even if it’s not much.”

Logistics Business Association president Chea Chandara echoed a similar sentiment, telling The Post that the two days of container storage would cut costs for exporters to some extent.

He noted that the owners of the goods currently incur demurrage fees from the sixth day that their containers are left at the port, but now that PAS has extended the allotted free time to seven days, this means “two more days free of charge”.

PAS reported container throughput of 641,842 twenty-foot equivalent units (TEU) last year, marking an increase of 0.41 per cent compared to 639,211 TEUs in 2019.

A TEU is an inexact unit of cargo capacity used in the shipping industry roughly equivalent to a container with internal dimensions measuring about 20 feet long, eight feet wide and 8.5 feet tall, or a volume roughly 38.5 cubic metres.

The SOE booked 311,813,769,000 riel ($76.8 million) in revenue last year, down by 6.62 per cent over 2019 and net profit after tax of 26,607,5944,000 riel, down by 38.78 per cent year-on-year. It did not specify which particular revenue measure (gross, net) it was referring to.

MOST VIEWED

  • All Covid restrictions for inbound travellers lifted

    Cambodia has apparently taken the final step towards full reopening of the country without Covid-19 restrictions by removing all requirements for inbound travellers, who until now had to show health certificates indicating that they have tested Covid-19 negative in the past 72 hours as well as

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Cambodia stands firm on 5PC: No invite for Myanmar to ASEAN Summit this year

    Cambodia has not invited Senior General Min Aung Hlaing, chairman of Myanmar’s ruling State Administration Council (SAC), to the 40th and 41st ASEAN Summit and related meetings scheduled for next month in Phnom Penh. The government will instead invite a non-political representative from Myanmar

  • Mushrooming borey projects and home financing – a cause for concern?

    A spurt in housing developments is typically a sign of a growing economy but underneath all that might lay some anxiety of credit growth as developers offer financing to buyers at higher rates, an activity the central bank identifies as ‘shadow banking’ Earlier this year,

  • Thai Senate delegates in Cambodia to discuss anti-graft co-op

    A delegation from Thailand's Senate was in Phnom Penh on September 28 to meet their Cambodian counterparts to discuss strategies for fighting corruption and enhancing cooperation. The Thai delegates were from its Senate’s Committee on Studying and Inspecting Corruption, Misconduct and Strengthening Good Governance. They

  • Scholarship winner tells secrets to success

    Chhim Chaknineath was awarded the Chevening Scholarship for one year of postgraduate study in the UK for the academic year 2022-2023 along with a group of 10 other outstanding students who applied. She spent more than a year researching and studying – as well as consulting with