As China-US trade tensions continue to rise, Taiwan-based transportation and freight forwarding specialist Dimerco has supported its customer―a world leader in mechanical steel for renewable energy solutions―in establishing a new manufacturing base in Malaysia, enabling their customer to import equipment, raw materials and produce finished goods for export directly to the United States.
Dimerco planned and managed the entire 6-day logistics process to ship the first 122 steel coils weighing over 3,000 metric tons from port to warehouse, including storage, sample cutting, re-wrapping and packing, as well as handling customs clearance and distribution to the consignee. Since the first shipment in March this year, Dimerco has now shipped approaching 10,000 metric tons of steel coils, with more scheduled. Based on this successful project, Dimerco secured a further contract with this customer for a different product in a second newly built factory last month, in May 2019.
According to a spokesperson from Dimerco, the company previously shipped heavy production equipment for the customer from Suzhou in China to Malaysia. And, in the light of the China-US tariff stand-off, the customer has decided to not only build a new factory in Malaysia but also ship raw material from South Korea/Taiwan to Malaysia via ocean freight, with Dimerco handling all operations from the destination port. “Our experience and deep market knowledge in this region enabled us to provide a comprehensive and seamless service to our customer who is operating in an unfamiliar market to them,” the spokesperson said. “We transferred the cargo to a warehouse in the Free Zone Authority and worked through the night to achieve a rapid transit time, as well as liaising with trusted partners on utilizing specialist equipment required to handle the heavy freight and dispatching local transportation with low-bed trailers.”
In order to achieve smooth customs clearance, Dimerco’s dedicated team also arranged sample cutting for SIRIM (Standard and Industrial Research Institute of Malaysia) Inspection, arranging for a subcontractor to slight 3 baby coils from the 25 tons mother coil and ensuring each coil was labelled accurately on arrival at port, before inspection.
“This project has allowed us to demonstrate our breadth of services and our commitment to teamwork,” Dimerco’s spokesperson concluded. “We were able to advise our customer on the specific requirements of coil import and transfer in Malaysia, particularly with regards to warehousing, inspection and customs clearance. In addition, we provided onsite monitoring and 24 hour live updates to our customers, as well as delivering basic training on the FZA regulations and SIRIM inspection. Dimerco is delighted that our expert heavy freight handling services have been recognized with a further contract in Malaysia from our valued customer.”
Photo Caption: Dimerco coordinated to load on low-bed trailer (left) and Sample Cutting for SIRIM Inspection (right).