A Bankrupt Call for Logistics Sector in Cambodia

• Apr 27, 2020

The Cambodia Logistics Association (CLA) has voiced concern over the quality of the logistics and transport sector stemming from the COVID-19 pandemic and has said that a few logistics companies are now bankrupt.

Sin Chanthy, president of CLA told Khmer Times that the outbreak of COVID-19 has affected all sorts of businesses; especially logistics and transportation globally including Cambodia. He said that this sector has been continuing to suffer significantly.

“The CLA is asking for more collaboration from the government and relevant stakeholders to solve all the issues during the hard-hit situation,” Sin said.

According to Sin, hundreds of logistics and transportation companies in Cambodia are losing jobs, and will soon close business operations and activities if the situation is ongoing and no solutions are found.

Airline companies have also started to suspend their operations and activities while the price of air transport is rising dramatically. Plus, the border transport routes are also closed or restricted.

Sin Chanthy, president of Cambodia Logistics Association. KT/Chor Sokunthea

Sin said the CLA added that a lot of logistics and transportation companies are adding more costs through face masks, gloves and alcohol gel sanitisers,to protect staff from catching COVID-19 and some work in the office is reduced which affects business operations. However, interest rates, rental fees and other expense are still high.

He said that the suspension order on garment factories, footwear and travel bags from buyers in the US and EU markets are also affecting the transport businesses and activities. In addition to this, payments are being delayed payment from customers, so the transports and logistic companies are lacking cash flow and they are not able to pay bank loans.

The CLA found that what makes the logistics and transport sector suffer even more severely is the tax audit from the taxation department both the capital and provinces and expense on the administration and commission fees for releasing cargo for shipment. These costs have not been reduced.

Source: https://www.khmertimeskh.com/50717296/a-bankrupt-call-for-logistics-sector-in-cambodia/