Tariff war killing haulage firms in Indonesia

The current tariff war at the Indonesian Tanjung Priok Port is threatening to put several more road haulage companies out of business.

The agreed tariff guide put together by various associations and service providers is not being adhered to with discounts of 20%-40% quite common.

However, those transport operators concerned are complaining of increased prices in other areas and many are therefore being driven to the wall.

Others are unable to modernise their fleet of vehicles, since no investment is available. In effect, 14,606 vehicles are chasing daily traffic of just 6,000 containers, prompting heavy discount to secure work.

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