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FAQs

CLA
FREQUENTLY ASKED QUESTIONS (FAQ)

BENEFITS to Forwarders
CLA primarily provides a Level playing field for Forwarding Agents to expand their logistics business and further benefits as stated below;

  1. BOOST in Cash Flow
    1. Collect delivery order (DO) from SA without container deposit.
    2. Outstanding container deposit / rolling deposit with SA will be refunded
    3. Reduce financing costs for forwarders i.e. 1.5% credit card charges for container deposit paid on behalf of the consignee
    4. Credit CLA will be operated as postpaid services, while Cash CLA operates as prepaid services with minimal amount to an active account
    5. Reduction in capital requirement to undertake the new consignees
    6. The Opportunity costs to use the Free Cash Flow to increase revenue
  2. SLASH in Expenses
    1. Reduce costs relating to futile trip / waiting time to pick-up container
    2. FA can use Consignee CLA account to release DO and avoid using FA’s own CLA account
    3. Charges (if any) by SA is based on invoice raised and exact amount payable
    4. Multiple payment channels including EFT, IBG, Cheque, etc
  3. IMPROVE in Productivity
    1. Improve planning for faster container pick-up and delivery
    2. One stop Centre to manage free flow of container, from discharge to consignee’s premises
    3. No more documentation for refund
    4. Invoice faster and available all the time on D&D Website
    5. No more hassle to place container deposit cheque at every shipping line on a daily basis.
    6. Remove unnecessary time to prepare container deposit before DO released by SA
    7. Don’t have to monitor and reconcile cash availability in the bank account to honour the container deposit cheque
    8. More accurate and timely billing to consignee
    9. Reconciliation is much easier and less documentation
    10. Improve in consignee satisfaction with superior services
    11. Staff productivity will improve to manage more consignees
  4. REDUCE in Risk
    1. Early notifications to inform container have exceeded free days and charges applies
    2. Temporary insurance to cover for container total loss or theft
    3. Safety net for container deposit refund if Shipping Agent cease business or bankrupt
    4. Due Diligence on Consignee’s track to consider financial risk when representing consignee

  1. Free flow of containers and reduce turnaround time
  2. Charges (if any) by SA is based on invoice raised and exact amount payable
  3. Multiple payment channels including EFT, IBG, Cheque, etc
  4. Improve competitive edge and fasten accounts receivables collection

  1. No demurrage fees payable to Port Terminal
  2. Remove deposit administrative time and save costs
  3. Faster invoicing to billing party and available on website
  4. Reconciliation is simple and easy to do bi-monthly
  5. Liners don’t require to monitor and manage the team on collection
  6. Standardize credit period is 14 days for overdue invoices
  7. Industry standard TOR for M&R EOR process applies
  8. Participation of over 85% active forwarders through respective associations at Penang, Pasir Gudang and Port Klang
  9. More forwarders will participate to ensure their business improved
  10. Improve free flow of containers and making industry more vibrant
  11. Due diligence of the consignee on industry depositors list for lines to better manage financial risks
  12. M&R joint survey to be coordinated by D&D
  13. Independent container survey services can also be arranged
  14. Same Terms of Reference (TOR) with NCD 2.0 but enhanced to suit changing industry trends
  15. One stop Centre to manage free flow of container, easing the burden of the operations team at Lines.
Acronym Full words
CLA Container Ledger Account
SA Shipping Agents
NVOCC Non-Vessel Operating Common Carrier
FF Freight Forwarder
BL Bill of Lading
FA Forwarding Agent
CLA Principal Participating Shipping Agents, NVOCC Operator and Freight Forwarders as CLA Principal
M&R Maintenance and Repair

CLA is an alternative to replace container deposit requirement by Shipping Agents / NVOCC / FF (See list of CLA Principal)

The consignee or their appointed Forwarding Agents will no longer be required to place a container deposit at Shipping Agents / NVOCC / FF

CLA Subscriber will be exempted from container deposit at Shipping Agents / NVOCC / FF. CLA Subscription is open to both Consignee and Forwarding Agents

Eligible subscriber to CLA must be either;

  1. Consignee stated in Ocean BL as Billing Party
  2. Their nominated FA.

CLA Subscriber shall take fully responsible for any container related charges arising from CLA Principal

CLA is a service provided by D&D Control (M) Sdn Bhd

Here the steps involved to subscribe CLA

  1. Download the CLA Form - Click Here
  2. Fill up the Form and attach all relevant documents as per the Checklist
  3. Submit the CLA Form to D&D Office
    D&D Office PIC Email
    Port Klang (HQ)
    03-3324 5300
    Ms. Elaine Kan
    Ms. Rina Abby
    elainednd@dnd.com.my
    rina.abbydnd@dnd.com.my
    Penang
    04-329 2800
    Mr. Jimmy Ang jimmydnd@dnd.com.my
    Pasir Gudang
    07-353 7231
    Ms. Mala maladnd@dnd.com.my
    Kuching
    03-3324 5300
    Ms. Elaine Kan
    Ms. Rina Abby
    elainednd@dnd.com.my
    rina.abbydnd@dnd.com.my
    Kota Kinabalu
    03-3324 5300
    Ms. Elaine Kan
    Ms. Rina Abby
    elainednd@dnd.com.my
    rina.abbydnd@dnd.com.my

  1. The subscriber must be a legal entity and registered with SSM (www.ssm.com.my)
  2. The subscriber’s Consignees of CLA must not have any outstanding bill with CLA Principal. However, upon settling the outstanding amount, CLA account can be activated immediately.
  3. The subscriber’s Consignees or the subscriber itself must have valid insurance to cover for container Total Loss / Theft
  4. The subscriber (CLA Cash) must settle the ledger limit amount based on Container volume per month. The payment accepted in the form of BG / Bankers Cheque / Cash payable to D&D Control (M) Sdn Bhd. Account details: RHB Islamic Bank Bhd, Account No.: 2-12466-6000134-3

CLA Limit table

Container volume (monthly) Advance payment (RM)
< 10 units 5,000
11 – 50 units 10,000
51 – 100 units 20,000
> 100 units 30,000

There are two types of CLA Account,

  1. CLA Credit – D&D Control will provide credit facility to subscribers based on monthly volume of container with all CLA Principal
  2. CLA Cash – Subscriber to make advance payment to CLA based on monthly container volume with all CLA Principal

D&D Control (M) Sdn Bhd will determine the suitable type of CLA Account based on payment history and profiling with CLA Principals.

There is no charge for CLA subscription by D&D Control (M) Sdn Bhd

CLA subscriber will be subject to late payment charges if overdue invoice is deducted from CLA Account directly for the payment to CLA Principal

Yes. If monthly container volume exceeds CLA Limit, CLA account will be removed from the circulation list to CLA Principal unless account limit increased according to the CLA Limit Table.

Container liability insurance is a mandatory requirement to activate CLA Account. The purpose of this policy is to cover for eventuality of Total Loss / Theft to container owned by CLA Principal.

CLA Subscriber with the existing insurance policy may already cover for total loss/theft. Therefore, CLA subscribers will have to register their valid insurance cover with D&D Control (M) Sdn Bhd in order to monitor the renewal of the policy.

In the absence of any insurance coverage, D&D provides a temporary solution, called CPC (Container Protection Charges) for each and every container. CPC covers Total Loss on Import container from the point of gate-out Terminal (Port) to Empty return Depot (container yard).

CPC covers the total loss (actual or constructive) of container insured caused by

  • Fire, lightning, explosion
  • Road accident
  • Theft and hijack
  • Impact damage by vehicle or mobile equipment accidents during stuffing and unstuffing
  • Land subsidence or landslide
  • Dropped whilst loading on to, or unloading from the land conveyance or stuffing or unstuffing by third party sub-contractor or customer provided such third-party sub-contractor or customer are not an associated /affiliated to the insured.

For a permanent solution, it’s advisable for CLA Subscriber to include container total loss/theft into their insurance policy.

The risk is covered through an insurance policy issued by the licensed insurance company in Malaysia.

In the event of a claim, D&D will assist with the necessary technical information and manage the claim process with our experienced in-house M&R Team.

CPC costs;
RM10 for each GP Container (20’ and 40’)
RM 20 for Special Container (RF, SP, OT, etc.)

CLA coverage includes container discharged at the following Ports; Westport, Northport, Port of Tanjung Pelepas, Pasir Gudang Port, Penang Port, Kuantan Port, Kota Kinabalu Port and Kuching Port

At the moment, CLA Account must be opened independently by geographical location i.e. Penang, Pasir Gudang, Port Klang, Kuching and Kota Kinabalu

CLA Limit doesn’t cover for high risk cargo, high risk container and 1st time consignee. CLA Principal may impose additional security to cover the additional risk