KUALA LUMPUR : The Small & Medium Industries (SMI) Association of Malaysia is urging the government to settle the ongoing haulage strike at the country's premier port and gateway, Port Klang, which has entered its third day.

The association said all relevant parties, including the Ministry of Transport, the International Trade and Industry Ministry and the Port Klang Authority, should settle the problem amicably and urgently.

"Our members are facing tough competition from external competition and the last thing we need is internal strikes.

"The strike has caused a backlog in the clearance of import containers and demurrage, storage and removal charges is imminent and delays of returning empties to depots especially importers with limited container parking space and high traffic areas.

"Members who are exporting will face the problem of delays and non performance and may be penalised if exports dates are not honoured on time," SMI Malaysia said in a statement.

Since May 2, container haulage drivers have taken strike action at Port Klang to protest the long delays drivers face at depots to collect empty containers for export cargo or returning empties to the nominated depots.

There is no sight to the end of this strike and many SMI Malaysia members are stuck with their imported goods in the port, the association said.

"The roll over of containers may run the risk of space constraint and have a snow ball effect after the strike is over as shipping lines may want to cater space to the other ports as well.

"Concerns that shipping lines may by-pass Port Klang, if the strike continues, is also on the mind of members," SMI Malaysia said.