Local demand for overseas goods has dropped in line with the regional recession, and although empty container imports continue, shortages have not been a problem, APL Cambodia managing director Edgar Millar said.
"Many lines still import empty containers into Cambodia almost every week to meet the demand from garment exporters."
He said the only exception came from shipping lines and freight forwarders that did not specialise in the US market, as 70 per cent of export volume from Cambodia is destined for the US.
There have been occasional shortages of FEUs for carriers, but APL had containers available in every size "in order to keep our market-leader position", Millar said.
"The drop of import cargo has affected some feeders leaving the market and could impact export cargo starting from the second quarter this year," he said.
The new 10-per cent VAT has had an indirect affect on international shipping, mainly on the cost of imported goods used in manufacturing.
"In the long term, Cambodia's shipping industry will grow in 1999 but not as fast as the last two years."
Rates for both TEUs and FEUs remain 10 to 15 per cent higher than in Thailand but are on par with charges in Vietnam, according to Millar.
Feeder traffic operates three to four regular departures a week between Phnom Penh and Sihanoukville and on to Singapore depending on volume.
Cambodian Customs formalities remain in flux since proper procedures have only been in effect for a few years, Millar said.
Up to 65 per cent of Customs fees fall under the "hidden cost" category paid directly to government officers.
Official fees for TEUs range between $120 and $150.
These prices do not include additional charges to speed Customs clearance of between $100 and $500 per shipment.
"This makes total expenses of one container 20 to 30 per cent higher than in Thailand, anyhow it is similar to Vietnam," Millar said.
All cargo is loaded in Phnom Penh due to existing Customs regulations and controls.
Sihanoukville remains the inspection point for cargo.
The toxic waste issue in that port city has affected tourism and but not port operations.
The owner, DG Formosa, has been shipping the waste back to Taiwan and this is expected to be completed in a few months, Millar said.