News / Port single windows will cut 'unfair' box line levies

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The deployment of digital ‘single windows’ in ports has the potential to bring considerable improvements to shipper and forwarder port-related operations, and vastly reduce the number of unfair or contested container-related charges levied by shipping lines.

Under the International Maritime Organization’s (IMO) Facilitation Convention (FAL), which entered into force on 1 January this year, it is now mandatory for public authorities to establish, maintain and use single window systems for the electronic exchange of information required on arrival, stay and departure of ships in ports.

In addition, public authorities will have to combine or coordinate the electronic transmission of the data to ensure that information is submitted or provided only once and reused to the maximum extent possible.

It is one of the IMO’s key digitisation efforts.

So far, the single window has not been directly relevant to freight forwarders and cargo owners in the way that port community systems are, as Javiar Gallardo, chairman of the International Port Community Systems Association (IPCSA) explained to delegates at this week’s World Ports Conference in Hamburg.

“Port community systems are focused on voyage and cargo and matching logistics flows with administrative flows and B2B, B2G [business-to-government] and G2B; whereas single windows are focused on bringing together public administrations to ensure that traders only need to submit information once for the cross-border trade,” he said.

However, once port authorities have implemented a single window, its connection to the port community system can bring significant benefits to the wider supply chain, Port Klang Authority general manager K Subramaniam told The Loadstar on the sidelines of the conference.

Malaysia’s largest port, Port Klang, was mandated by the Malaysian Ministry of Transport to implement a single window system that has subsequently been deployed across all of the country’s ports. Malaysian IT firm DNex was contracted as project manager and India’s Kale Logistics Solutions developed the technology.

The first phase of the single window was rolled out in Malaysia in June, which Capt Subramaniam said had made life far easier for Port Klang’s shipping agents, who previously had to physically secure berthing and exit permits on paper documents for every ship calling at Klang from six government agencies, including customs and phytosanitary officials.

“Sometimes it could take days for an agent to get all the right stamps. It is now done in a single system in a matter of minutes,” he said.

Capt Subramaniam said there was potential for using the single window as a platform for wider supply chain improvements beyond the port.

“Eventually we want to build into the whole supply chain – the second phase of the single window implementation is linking up with the PCS, and so cargo and shipping line information will be available to shippers, consignees and freight forwarders, giving them immediate visibility when cargo has been discharged and so they can book their haulage and other landside operations,” he added.

A third phase of implementation will see the single window linked to Malaysia’s customs clearance system, as already takes place in Netherlands, which will allow payments of duties and permits to be done digitally.

“We are then going to track the cargo after it has left the port and is on its way to the consignee and we will know when the container has arrived at the warehouse, when it has been unloaded and when the empty is on its way back to the port.

“This is going to have a huge effect on shippers’ costs – they will be able to take photos of the container as it arrives and leaves their facilities and load them into the single window. A lot of charges that had been levied by shipping lines on shippers for container repair costs can no longer be applied.

“There have been a lot of complaints from Malaysian shippers about unfair shipping line charges, and this system will prevent them from recurring,” Capt Subramaniam said.