Any discrepancy between reality and paperwork could expose every stakeholder in the supply chain to severe legal and financial repercussions.
PETALING JAYA: A prominent maritime executive has issued a warning regarding the escalating operational and regulatory hazards within the shipping and commodity sectors, specifically concerning cargo documentation and the handling of oil after it has been discharged.
Maritime Network Sdn Bhd Chief Executive Officer Datuk Seri Jeyenderan Ramasamy observed that those outside the industry frequently overlook the gravity of the Bill of Lading (BL).
He stressed that far from being a mere administrative form, the BL is a cornerstone of the global trade ecosystem.
A maritime expert with over 30 years of experience, Jeyenderan pointed out that the BL is closely linked to banking transactions, insurance arrangements, Customs declarations, cargo ownership representation and sanctions compliance, making documentation accuracy critical throughout the supply chain.
“The most significant risk for a shipping agent arises when the physical movement of cargo and its documentation cease to align,” Jeyenderan said.
He warned that any discrepancy between reality and paperwork could expose every stakeholder in the supply chain to severe legal and financial repercussions.
Despite not being the beneficial owners of the cargo, shipping agents face substantial exposure. Authorities, terminals, and counterparties rely almost exclusively on the declarations processed by these agents.
Consequently, industry players are now prioritising internal compliance, know-your-customer (KYC) protocols, and documentation integrity more than ever before.
The situation is particularly volatile in the oil trade. Agents often receive conflicting instructions from various parties, including traders, receivers and logistics providers, that may deviate from the original BL.
“When different stakeholders begin operating from different versions of the cargo’s history, the risk profile spikes.
“The agent must ensure absolute consistency from both a regulatory and operational perspective,” he added.
Jeyenderan also addressed the common industry practice of oil blending and commingling post-discharge.
While standard, he added that maintaining a clear audit trail becomes a major hurdle once cargo enters storage tanks and mixes with existing stock.
He argued that if cargo is altered through transfers or blending, the documentation and classification must evolve in tandem to ensure accurate regulatory treatment.
A lack of alignment between Customs records, the BL, tank measurements, and the physical cargo can lead to a total loss of visibility.
Jeyenderan warned that when Customs records, BL, tank measurements and actual cargo positions no longer align, the industry begins losing visibility over cargo movement, potentially resulting in compliance gaps, commercial disputes and revenue leakages.
He also added that the global maritime industry must pay closer attention to post-discharge handling.
When documentary records fail to keep pace with physical cargo changes across multiple tank transfers, it threatens the integrity of both tax and regulatory mechanisms.
