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TERMS OF REFERENCE (TOR)

PRODUCT

Container Protection Coverage (CPC).

CUSTOMER

CPC is a service mainly for Container Ledger Account (CLA) Subscribers, within the Container Shipping Supply Chain, who have a vested interest in the containers.

DESCRIPTION

CPC provides an ongoing monitoring and management service that includes the verification of the condition of containers at every interchange between relevant parties to monitor the wellbeing of each and every container, particularly for visible damages.

METHODOLOGY

CPC comprise of internally developed and tested 4 step processes (AVIJ):
1. Authenticate the validity of evidence captured,
2. Verify the occurrence on each container,
3. Investigate the root cause of each occurrence, and
4. Justify, on without prejudice basis, the party(ies) responsible for the occurrence.

LOCATION

Anywhere in Malaysia only.

SERVICE PROVIDER

D&D Control (M) Sdn Bhd (D&D), who is a neutral party providing CLA as an alternative for container deposit practice in Malaysia endorsed by Ministry of Transport. D&D has been in the container monitoring and management since its inception and the dedicated team has almost 3 decades of experience, who has the capability and infrastructure to perform the CPC’s methodology.

CHARGES

General Purpose (GP): RM10 per container
Special (SP)/ Refrigerated (RF): RM20 per container.

BENEFITS

1. A data bank of root cause analysis will provide invaluable information to educate subscribers on better container handling and management.
2. Improve the container average turnaround time (ATT) to lower costs of container repositioning.
3. Each and every dispute will be handled through a procedure based on five fundamental elements (Neutrality, Respect, Understanding, Opinion and Solution) that will lead to exceptional quality of service which is above all, Fair & Friendly.
4. A risk mitigation and solution for Total Loss of Containers – Loss due to Burglary, Theft, Hijack, Fire, Lightning, Explosion and Accidental Damage whilst on land transit after gate-out from the designated ports including storage / unloading / loading of the cargo at the consignees’ premises until safe return to the designated container depots, anywhere in Malaysia.

Compensation:
Total Loss limited to RM 30,000 (General Purpose) and RM 80,000 (Special/Refrigerated).

Exclusions:
(a) Loss and/or damage discovered after 60 days from date of gate out from the designated ports (b) Cost of routine maintenance (wear & tear/washing/cleaning) of the container, Detention and Demurrage charges (c) Loss and/or damage to container arising from infidelity or acts of dishonesty or fraud of any partner, or directors of the forwarder and/or importer & exporter or shipper (d) Loss and/or damage to container happened at port of loading and/or during sea voyage from port of loading to port of discharge (e) Container confiscation by authority (f) Container detained by shipping agent.

Basis of Valuation:
It is hereby agreed that in the event of loss the quantum of compensation will be the maximum limit specified above or actual cash value of the container(s) at the time of loss, whichever is lower, regardless of any other basis of valuation.