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Home Supply Chain Updates

MCO rules for logistics and parcel hailing services

usscmc by usscmc
January 14, 2021
Online education in a time of crisis
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Below are some frequently asked questions for logistics and parcel hailing (p-Hailing) operations under the jurisdiction of the Transport Ministry during the movement control order period.

LOGISTICS

Q: Are logistics activities allowed during the MCO/conditional MCO/recovery MCO period?

A: Transportation and logistics activities are allowed to operate as part of essential services based on Schedule Regulation No. 3 of the Prevention and Control of Infectious Diseases (Declaration of Infected Local Areas) (Control Order) 2021 dated Jan 12,2021.

The approval to continue operating is subject to the delivery of necessary services that have been listed and are currently enforced.

Logistics activities that are currently permitted include:

i. Freight forwarder and Customs agents

ii. Truck hauliers operations (Operasi lori hauliers)

iii. Freight train operations

iv. Shipping line and Non Vessel Operating Common Carrier (NVOCC) operations

v. Air freight

vi. Storage activities (warehouse, off-dock and others)

vii. Inland container depot operations

viii. Operation of ancillary services to transport via land, water or air (towing, workshop, tyre supply and others)

Q: Will logistics and transportation companies need to request for an endorsement letter from the International Trade and Industry Ministry (Miti) to operate during the MCO period?

A: No. Logistics and transportation companies are not required to make a new application to operate during the MCO period. Owners of commercial vehicles are also not required to get a letter of approval from the Transport Ministry. It is already sufficient to obtain the letter of verification from their respective employers.

For your information, there are no restrictions for commercial vehicles to operate during the MCO period.

For this purpose, a special lane will be designated at each roadblock with commercial vehicle drivers only requiring to show the verification letter from their employer to operate if requested by the authorities.

For other companies in the logistics sectors (eg freight forwarders and warehouse operators) that are not registered under their respective associations, a letter of approval from the Transport Ministry and proof of association membership must be included if it is needed by authorities.

For companies that are not registered under any association, the approval letter from Transport Ministry can be requested via https://application.mot.gov.my/.

Q: Are logistics companies allowed to transport material to locations that did not receive the approval to operate?

A: Before delivering, the companies must ensure the owner of the cargo is allowed to operate (received the letter of approval to operate from relevant agencies such as Miti) in order to receive the cargo.

In a situation where the supplier factory has not been allowed to operate but raw materials from the supplier factory can be found at the warehouse, the transportation company is allowed to bring them to the manufacturing plant for manufacture.

Q: Will the Transport Ministry make any announcement on the type of cargo that will be allowed for logistics and truck operators during this MCO period?

A: All types of cargo are allowed during the MCO, conditional MCO and recovery MCO. There is no need to make any further announcement.

Q: What is the operation status of e-fulfillment hubs/warehousing operations during the MCO period?

A: The government has no issue for the operation of the e-fulfillment hubs/warehousing.

This is because e-fulfillment hubs/warehousing operations are not subject to the MCO as outlined under the Federal Government gazette Prevention and Control of Infectious Diseases (Declaration of Infected Local Areas) 2021 (PU(A) 8,9, or 10).

Industry players are required to follow the advice by the Health Ministry to curb the spread of Covid-19.

The distribution centre operations involving the supply of essential daily needs and food, including e-commerce warehouse and supporting warehouse services, are allowed to continue to operate, subject to the SOP of the MCO/conditional MCO/recovery MCO which is currently being enforced.

Q: What are the necessary rules and regulations that need to be followed by logistics providers in order to operate during the MCO period?

A: Before delivering, the companies must ensure warehouse/factory/cargo company owners are allowed to receive the cargo that has been sent to them.

Companies must also adhere to all the work procedures in the office and on site as outlined by the SOP issued by the National Security Council.

Physical distancing must be observed as part of a new norm in their daily operations, including during the delivery of goods.

Unloading work, which is assisted by transportation workers (drivers and assistants) especially at grocery shops, shopping malls and convenience stores, must be fully carried out by cargo owners with minimal labour.

Q: Is the operation of freight forwarders and shipping agents at ports allowed during this period?

A: Port operations will continue as usual. All unloading and movement activities for cargo ships are also allowed and are not limited to essential items.

Therefore, the operation of freight forwarders and shipping agents will go on as usual in all ports in Malaysia.

This is subject to the compliance and current orders from the National Security Council.

Q: Is the movement of cargo across Malaysia’s land entry points (import, export and transhipment) allowed during this period?

A: All air crew, other crew members as well as lorry drivers handling heavy vehicles for the transportation of commercial goods are allowed to enter and move across neighbouring countries such as Singapore, Thailand, Indonesia and Brunei but subject to the orders from the National Security Council, Immigration Department and the police.

All air crew, crew members and lorry drivers are required to undergo health screening and follow the relevant border control regulations as agreed by the Malaysian government and other relevant countries.

Companies are also required to ensure their workers have a valid passport with sufficient pages for Immigration matters.

If the passport has expired, the company can contact the state Immigration Department to apply for a passport date renewal/issuance of a new passport book during the MCO period.

However, the order is subject to current instructions from the National Security Council.

Q: Is there any form of restriction on the movement of commercial vehicles on the road?

A: There is no restriction on commercial vehicles on the road.

However, if possible, cargo owners are encouraged to use the cargo mode of transport via railway as much as possible to reduce the contact risk of Covid-19 among truck and lorry workers.

Among the segments that are encouraged to be used is the transfer between terminals that have current railway services, which is the WestPort and Northport in Port Klang, Tanjung Pelepas port, and the Pasir Gudang port in Johor Baru.

PARCEL HAILING

Q: Is the delivery service of goods still allowed during the MCO period?

A: Delivery services are still allowed to operate as stated under Prevention and Control of Infectious Diseases (Declaration of Infected Local Areas) 2021 (PU(A)8) dated Jan 12,2021.

Riders are required to have a valid competent driver’s license (CDL) and must be not less than 18 years old. Riders must also not be blacklisted under the Road Transport Department (JPJ) or the police.

All entities and individuals are encouraged to provide insurance protection to the riders.

They must also comply with all the road and transport rules including wearing a helmet and others.

The delivery box to carry all the goods must also follow the size set by the JPJ.

For safety purposes, it is not allowed to use the interzone (localisation) highway but it is mandatory to use the motorcycle lane as gazetted, and the use of clear/safe shirt marks.

Q: Am I allowed to use personal vehicles for the delivery service of goods throughout the MCO period?

A: As stated under the Land Public Transport Act 2010 and the Road Transport Act 1987, all commercial services vehicles must have an operators’ licence and must be registered as a commercial vehicle before they are allowed to operate.

Therefore, private vehicles are not allowed to be used as a commercial vehicle – either for their own business or a third party (for rental/payment) if they are not licensed or pre-registered.

Q: Are vehicles carrying goods allowed to operate during the MCO period?

A: Although the operation of e-commerce is allowed 24 hours, the delivery time will only be allowed between 6am and midnight, subject to orders by the National Security Council.

The operation time and type of goods that can be delivered is subject to the zones set by the National Security Council and other current regulations instructed by the body.

Q: Will the Transport Ministry set any condition regarding health screenings before companies/individuals delivering goods are allowed to operate during the MCO period?

A: Prior to operation, companies/individuals involved in the p-hailing industry must observe physical distancing, health and contactless transactions as much as possible. All p-hailing drivers are required to undergo health screening and follow the Covid-19 prevention regulations set by the Health Ministry to be issued from time to time.

If any of the staff is infected with Covid-19, the company is required to extend assistance and give full cooperation to the Health Ministry in conducting contact tracing for the individuals infected by Covid-19 as well as the management of contact.

All p-hailing riders are also required to download and register the MySejahtera app and show proof of registration to the authorities.

The Transport Ministry hotline will also continue to operate throughout the MCO period at 1-800-88-7723, from 8am to 6pm, from Monday to Friday (except for public holidays).

Further queries or reports can be lodged at WhatsApp number 019-290 7723 or via email [email protected].

For further information, users can go to http://cccovid19.mot.gov.my/index.html

To access Transport Ministry’s media statement on the approval to operate for companies under the logistic sectors throughout the MCO beginning Jan 13,2021, visit http://cccovid19.mot.gov.my/assets/images/preview/Siaran_Media_MOT-Aktiviti_sektor_logistik_semasa_PKP_13-26_Jan_2021.pdf.

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