Jakarta gets stubborn on charges
In a move that has shocked shipping lines, Indonesia is enforcing its 37% terminal handling charge cut. Ships are being barred from leaving Jakarta unless their owners play ball and put it in writing that they will submit to the new charges.
Vessels have been effectively held hostage to the new set-up, with the insistence being that no more than US$95 would be charged in THC per TEU. The issue is a bureaucratic one and there have been no actual detainments or arrests but port clearance and other services have been withheld.
Most lines are not happy with the charge cuts and are resisting Indonesia’s decision, with one liner executive’s reaction quoted as “flabbergasted”. Some lines are considering pulling out direct services to Indonesia and moving cargo via Singapore instead. This battle may prove costly for Indonesia, whose government is keen to bring in international investment for new projects, but may find itself out in the cold.