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CLA Philippines is eyeing to onboard more shipping lines this year while working on further reducing the time it takes to refund container deposits in its online system, Container Ledger Account
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CLAP has been communicating with some shipping lines awaiting approval from their principals to join the system and hopes at least two large carriers will sign up this year
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CLAP is also in talks with UnionBank to integrate their system to CLA for faster bank transfers, which will mean faster refund of container deposits
CLA Philippines (CLAP) is eyeing to onboard more shipping lines this year while working on further reducing the time it takes to refund container deposits in its online system, Container Ledger Account (CLA).
CLAP has been communicating with some shipping lines awaiting approval from their principals to join the system and hopes at least two large carriers will sign up this year, according to Mahendrarajah Selvaraja (Mahen), president and chief executive officer of Malaysia-based D&D Control (M) Sdn Bhd, which created CLA.
CLA is an alternative and voluntary solution to simplify container deposit management between the shipping line/shipping agent and consignee, freight forwarder, customs brokers, container freight station/warehousing operator.
Currently, there are now 30 shipping lines/agents signed up with the system, as well as 853 consignees and freight forwarders, and 1,042 customs brokers, container freight station/warehousing operators.
Mahen said they are also in talks with UnionBank to integrate their system to CLA for faster bank transfers, which will mean faster refund of container deposits. Mahen noted that many of their users use UnionBank, and they are hoping the integration can happen in a few months.
But even without the integration, Mahen noted that as of January, refund time was at an average of 0.8 day.
CLA started in Malaysia, which also used to have problems with the return of container deposits.
In the Philippines, the Association of International Shipping Lines—a group of carriers calling Philippine ports—tapped D&D to offer CLA as an alternative solution to the long-standing issue of the return of container deposits. It began pilot-testing in the Philippines in December 2021, and has been endorsed by the Department of Transportation and Department of Trade and Industry, supported by several industry organizations.
READ: DTI, DOTr push Container Ledger Account use to carriers
Aside from Malaysia and the Philippines, CLA expanded last year in Indonesia, Vietnam, and Laos.
CLA can either help manage container deposits online or replace the deposit with a one-time security payment.
The system aims to reduce procedures, time, and costs; improve competitiveness, and level the playing field between big and small and medium organizations. It also aims to eliminate the administrative burden of shippers who have to prepare various documents in order to claim their container deposits from various shipping lines.
Through CLA, users can provide the container deposit or a security amount for use with all their containers regardless of the shipping line for a fee.
