Logo of Phnom Penh Post newspaper Phnom Penh Post - Logistics sector fears slowdown amid outbreak

Logistics sector fears slowdown amid outbreak

Content image - Phnom Penh Post
As border restrictions tightened amid the pandemic, logistics companies are no longer able to pay employees’ salaries as revenue dries up. POST STAFF

Logistics sector fears slowdown amid outbreak

The Cambodia Logistics Association (CLA) has expressed concern about the severe impact on the logistics and transportation sector which faces a downturn in business due to the Covid-19 outbreak, it said in a statement on Saturday.

A supply shortage of imported raw materials from China has led to a loss of jobs in the garment sector, the Kingdom’s largest industry and largest user of logistics services, it said.

Fewer garment exports, including footwear, trousers and travel products to the US and European markets have led to transportation carriers losing money.

A number of airlines have suspended flights under the circumstances, resulting in a heavy loss of aviation brokers and cargo contracts with overseas customers, while air freight prices continue to rise.

As border restrictions tightened amid the pandemic, logistics companies are no longer able to pay employees’ salaries as revenue dries up, said the CLA.

Meanwhile, many customers are delaying payment, causing a congestion of cash flow. Bank interest rates, office rents and other expenses have become increasingly burdensome, it said.

“Looking at government ministries and institutions, the expense of processing paperwork to export goods has not been reduced at all.

“All kinds of audits from the General Department of Taxation are becoming more and more burdensome for the logistics sector, striking more fear into business owners than the Covid-19 disease,” it said.

CLA president Sin Chanthy told The Post that the logistics and transport sector has been the most affected, with conditions worsening on all sides and no solution in sight.

“We ask for mutual cooperation to get through this emergency,” he said.

Khun Saroeun, co-founder and CEO of locally-owned global logistics and courier specialist SHA Transport Express Co Ltd, said his company is facing revenue losses due to a sharp drop in freight activity.

“We are facing serious problems, we want to ask the tax authorities not to audit and ask the government to help the logistics and transport sector to sustain business,” he said.

Phan Phalla, undersecretary of state at the Ministry of Economy and Finance, who is a member of its ad hoc working group tasked with strategic goods control for the duration of the pandemic, could not be reached by The Post on Sunday.

Late last month, the government issued a three-month minimum tax exemption for the aviation sector and an exemption on all types of monthly taxes for tourism operators.


  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there