Tight container market hits exports to Asia

DutchNews, March 3, 2017

Loading container ships in Rotterdam. Photo: Depositphotos.com

 Dutch exporters to the Middle East and Asia are being hit hard by the lack of container space on ships from Europe, the FinancieeleDagblad said on Friday. 

Some companies must wait weeks for space on a container ship. ‘It’s dramatic,’ said one Dutch company with orders from Thailand and South Korea. ‘I have containers ready for shipment now but have to wait until mid-April for space on a ship,’ he said. 

The largest container shipping line in the world, Maersk of Denmark, said it was searching for solutions to the problem. Germany’s Hapag-Lloyd said it was operating ‘near to the limit’ of its capacity. And Marc Beerlandt, head of the Belgian office of container shipper MSC said: ‘This is huge. The phone is ringing off the hook from exporters who cannot ship their goods.’ 

The development is surprising because there has been structural overcapacity in the market for the past two years. 

Joost Sitskoorn of shippers organisation EVO/Fenedex is presently in Jakarta for the annual meeting of the global shippers group GSA. He said there  were many complaints there about lack of capacity and high tariffs. He added there was also under-capacity on the Asia-North America services. 

Shippers appear to be willing to pay a premium to get their goods to Asia. Some tariffs between Rotterdam and Shanghai, normally $200 per container, have shot up to between $1,500 and $2,000, the FD said.

Govt. extends import on shrimp species

The Jakarta Post, Jakarta | Fri, 12/31/2010

The government has extended the ban on the import of shrimp from the species of penaeus vanamae due to reports that the shrimp carries thirteen viruses dangerous for human health as well as that of other shrimps.

According to Saut P. Hutagalung, the director of foreign marketing at the Maritime Affairs and Fisheries Ministry, the ban, which took into effect on Dec.23, will last indefinitely until the virus can be contained.

“The import [of the shrimp] will be banned for at least the first semester of 2011,” he said, as reported by kontan.co.id.

He added that the ban was based on the scientific findings of the World Organization for Animal Health (OIE) which pointed out that the shrimp carried 13 viruses harmful for the health of humans and other shrimp species.

However, Fisheries Processing and Marketing Entrepreneurs Association chairman Thomas Darmawan said that the government should just limit and tighten vaname shrimp imports instead of implementing a full ban since the virus did not attack all countries.

“We can import from virus-free countries,” he added.

Many Import Documents are Forgeries

Tempo Interactive, Wednesday, 31 March, 2010 | 12:41 WIB

TEMPO Interactive, Jakarta: The Directorate General of Customs and Excise have found numerous violations using fictitious Certificates of Origin following the free trade agreement. As of early this year, at least 53 cases with false certificates of origin have been found in Tanjung Perak Harbor, Surabaya and Belawan Harbor, Medan.

Customs and Excise director-general, Thomas Sugijata, said that the findings consisted of 32 cases in Tanjung Perak and 21 cases in Belawan. They were exposed following checks carried early this year on goods unloaded in the two harbors.

The modus is allegedly to claim imported goods originating from countries which have not established a free trade agreement to come from those which have signed the pact. The aim is not having to pay tariffs.

According to Thomas, it is possible that similar cases occurred in other major harbors. “We have instructed that an investigation be carried as of early this year, especially on goods getting zero percent tariffs,” he said at a press conference in the headquarters of the Directorat General of Custom and Excise yesterday.

He was not able to provide information on the origin of the goods using the fake certificates, but he revealed that most of them used Chinese certificates of origin.

Indonesia has signed a free trade agreement with ASEAN countries as well as with China, Korea and Japan. “The tariff facilities will not be given to those who are not eligible. We will not allow this happen,” he said.

The Minister of Manpower and Transmigration, Muhaimin Iskandar, said that until now, there has been no significant impact following the launching of the free trade agreement.

“The Manpower Office chief has been instructed to keep on monitoring developments as a result of the China-ASEAN free trade agreement,” said Muhaimin in Bandung yesterday.

The Minister of Trade Mari Elka Pangestu said that Indonesia does not plant to sign a new free trade agreement in the near future. “More time is neededfor socialization,” said Mari in a separate occasion last week.

Mari explained that the socialization process carried out is about the positive side of free trade agreement. “We must also provide information about concerns (on the negative impacts), “she said.

Indonesia is still exploring the possibility of having a free trade agreement with Australia, New Zealand and Europe, which are grouped under the Europe Free Trade Association. Specifically on free trade between Indonesia, Australia and New Zealand, the government has just completed a feasibility study.

Even though there has been no agreement yet, according to Mari, the process leading to free trade with the three countries is being prepared. “At this stage, we have involved the Indonesian Chamber of Commerce and Industry,” said Mari.

AGOENG WIJAYA | ALWAN RIDHA RAMDANI | EKA UTAMI APRILIA

Ports ready to operate 24/7 by January 2010: Officials

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 12/16/2009 9:28 AM

A load off my mind: Loading and unloading activities at Tanjung Priok port in Jakarta. State port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop Tanjung Priok port into an international hub port with docks 18 meters deep, starting next year. JP/R. Berto Wedhatama

The government plans to start running Indonesia’s ports around-the-clock by early January to speed up customs clearance and reduce logistics costs, officials said Tuesday.

“All ports will operate 24 hours, starting from Tanjung Priok Port [in Jakarta],” said Edy Putra Irawadi, deputy in charge of industry and trade to the coordinating economic minister, and chairman of the preparation team for the National Single Window (NSW).

The NSW is an integrated public service system to give importers and exporters simpler access to services.

Launched in December 2007, the NSW is designed to shorten the time needed to verify the identity of importers to a maximum of seven-and-a-half hours, or one working day.

Importers previously had to wait several days for customs clearance.

The NSW has now been implemented at Tanjung Priok Port, Tanjung Perak Port in East Java, Tanjung Emas Port in West Java, Belawan Port in North Sumatra and Soekarno-Hatta International Airport in Banten.

Coordinating Economic Minister Hatta Radjasa said last week the fifth phase of the NSW would be launched in January 2010 to ensure the management of all imports and exports was integrated in one portal.

Anwar Suprijadi, the Finance Ministry’s director general of customs and excise, said his office was ready to work around-the-clock to support the ports’ new operating hours.

“The ministry regulation [on the operating hours] is up to the finance minister,” he said after a seminar with the Priority Businesses Association (APJP), which has 71 members prioritized to run export-import businesses.

Businesses have often complained that inefficient public services at ports push business costs up.

Finance Minister Sri Mulyani Indrawati said in her speech Tuesday that importers and exporters should help the government protect the ports by reporting any misconduct.

Economist Aviliani said the NSW would create greater efficiency cut costs and improve investment competitiveness.

“These conditions are expected to attract investors to Indonesia,” she said.

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Imports Expected to Slump Due to Rupiah Depreciation

The Jakarta Globe, February 13, 2009

 

Ships at Tanjung Priok harbor in Jakarta waiting to be loaded. The Indonesian export industry is predicted to suffer the brunt of the global economic slowdown. (Photo: Crack Palinggi, Reuters)

 

In another sign that the country’s economy is slowing down, the country’s imports are expected to drop by nearly 15 percent in value this year because of the rupiah’s depreciation and slowing production.

 

On the other hand, lower than expected growth, caused by the global economic turmoil, is credited for putting further downward pressure on the rupiah.

 

“Industry is likely to reduce its buying [of imports] because the dollar is more expensive now [making foreign-made goods more expensive],” said H. Amirudin Saud, chairman of the Importers Association of Indonesia, or Ginsi.

 

This means that industry players would buy more raw materials from the domestic market and import “only if absolutely necessary,” he said.

 

The weaker demand for raw materials and capital goods, including machinery and other items, means that imports would fall to around $110 billion this year, a drop of nearly 15 percent from last year.

 

The country’s export industry is predicted to suffer the brunt of the global economic slowdown and therefore is likely to reduce demand for raw materials and capital goods.

 

Total imports value last year stood at $128.79 billion, data from the central statistics bureau agency show. Import of raw materials contributed to 76.95 percent of the total figure, while imports of capital goods contributed to 16.52 percent. As for the exports figure for the whole of 2008, Indonesia recorded a growth of 19.86 percent compared to 2007, thanks to windfall profits resulting from soaring commodity prices, such as crude palm oil, earlier in the year. Exports in 2008 came in at $136.76 billion, up from $107.80 billion in 2007.

 

But the global economic slowdown is expected to push down export growth this year to between 1 percent and 2.5 percent, far below the government’s previous forecast of 5 percent and the lowest level for the first time since 1982.

 

The downturn’s effect on exports also helped push down the rupiah, with the currency declining for a fifth week, its longest losing streak since November 2007.

 

The rupiah declined 4.1 percent this month, the biggest loser among Asia’s 10 most-active currencies outside Japan. Bank Indonesia Governor Boediono said on Thursday the central bank would continue to “guard” the currency.

 

“Concerns about the global economy are weakening the rupiah,” said Shinta Zaiharwani, head of treasury at PT Bank Maybank Indocorp in Jakarta. “The rupiah will stay below 12,000 with BI intervention.”

 

The rupiah fell 0.8 percent this week to 11,770 per dollar as of 5 p.m. in Jakarta, according to data compiled by Bloomberg. The currency earlier dropped to 12,230, the lowest level this year.

 

Boediono also said the currency would strengthen by year-end as investors waiting to see the outcome of the July presidential elections resume buying the nation’s assets after the polls.

 

JG, Bloomberg

NSW scheme to be rolled out in nine more ports

The Jakarta Post, Jakarta

The government hopes to expand the National Single Window (NSW) scheme, an on-line permit service for importers and exporters -- first introduced earlier this week at Jakarta's Tanjung Priok Port -- to nine more major ports next year.

"So far, it's been successful at Tanjung Priok Port.

"And we expect that ten big ports, including Tanjung Priok Port, will be served by the scheme by the end of 2008, at the latest," said Edy Putra Irawadi, a deputy to the coordinating minister for economics, on Thursday.

By next April, he said, the government would introduce the system at Belawan Port in North Sumatra, Tanjung Mas in Central Java, Tanjung Perak in East Java, and Makasar Port in South Sulawesi.

The extension of the scheme to another five ports -- Panjang in South Sumatra, Pontianak in West Kalimantan, Batam, Bali and Banjarmasin in South Kalimantan -- was expected to follow later in the year.

Last Monday, Finance Minister Sri Mulyani Indrawati officially launched the first stage of NSW and its web portal -- http://www.insw.go.id.

During the first stage, five government agencies out of the 36 with responsibilities in the export/import field, have adopted the system, namely, the Customs Office, Food and Drug Control Agency, Directorate General of Foreign Trade, Animal Quarantine Center and the Agricultural Quarantine Center.

Currently, however, only 100 importers -- the beneficiaries of the so-called fast-track priority facility operated by the port authority -- are able to benefit from the scheme.

The priority facility, which grants importers preferential treatment for goods inspection at the port, is restricted to firms that have a proven track record and have never violated the regulations.

As for exporters, they will not be eligible to receive such treatment during the first phase of the NSW scheme, which is expected to end before April, when the second phase is scheduled to commence.

"We hope that by April next year, when we launch a common portal, the work of all the 36 agencies will be integrated in the NSW system, as well as other importers and exporters, so that we can simplify permit processing and curtail corruption," Edy said,

"There used to be a lot of redundancies involved as regards the necessary documents, unnecessary payments and convoluted bureaucracy."

He said that under the new service, an importer would only need 7.5 hours to get the necessary clearances to recover their shipments from the port authority, must faster than previously, when several days might be required.

The new service would also significantly reduce costs.

Edy said the NSW scheme had also simplified the job of the relevant government agencies, adding that the 23 biggest ports in Indonesia had to process 4.5 million export and import documents every year.

Customs patrol boat arrests three vessels carrying illegal rice & sugar from S`pore

Karimun, Riau Islands (ANTARA News) - A Riau Islands customs patrol boat intercepted and arrested three vessels on Monday carrying illegal rice and sugar from Singapore.

The three boats were KM Pulau Mas Jaya 1, KM Sukses Abadi and KM Ikemi Mandiri.

"The three vessels are being escorted to Ketapang port for further investigation," Chief of Investigations and Legal Action of the Riau Islands Service Office Syafrizal said at his office on Tuesday.

He further explained that in the beginning, the Customs patrol boat 15020 at 3.30 p.m local time arrested KM Pulau Mas Jaya 1 in the waters of Batu Berlubang Island, Moro subdistrict, Karimun regency, for carrying 12 tons of rice and 5 tons of sugar from Singapore with Dabo Singkep as destination.

Later on the same day at 7 p.m the customs patrol boat intercepted and arrested KM Sukses Abadi in Jang Island waters, Moro subdistrict, for carrying 1,200 50-kg sacks of rice, and 650 25-kg sacks of sugar.

Still on the same day but at 7.15 p.m., the customs patrol boat also arrested KM Ikemi Mandiri in Tukong Hiu waters, Karimun Besar Island, for carrying 25 tons of illegal rice and 5 tons of sugar from Singapore destined for Dabo Singkep.

Aceh teams up with Irish firm to develop Sabang port

Andi Haswidi, The Jakarta Post, Banda Aceh

The Sabang Free Trade Zone Management Board (BPKS) in Aceh province will team up with Ireland's Dublin Port Company (DPC) to develop Sabang into a world-class port at a cost of some Rp 4 trillion (about US$445 million).

BPKS deputy president Nasruddin Daud said Tuesday in Aceh's capital, Banda Aceh, that the two bodies would set up a joint venture company, to be called PT Sabang Hub International Port, in June to develop the port.

The construction of the port, which is expected to begin soon after the establishment of the joint venture company, is scheduled for completion in five years.

Sabang is an island located at the most western tip of the archipelago within the boundaries of Aceh province.

"The total investment, which it is estimated will come to about Rp 4 trillion, will be shared fifty-fifty between Dublin Port and us," he said. "Right now, we are still at the pre-qualification stage for consultants to design the port," he explained.

Nasruddin said that the contract between the BPKS and DPC, which would be signed in June, would run for 50 years.

After the long conflict in Aceh ended following the tsunami disaster in 2004, both the central and provincial governments have agreed to afford Sabang special treatment as the island is believed to have the potential to serve as an import-export hub.

Sabang will now be developed as a free-trade zone, a status that it also held back in the 1960s, and will have the capacity to accommodate ocean-going vessels.

Financing for the development of the port, Nasruddin said, would come from the central government, but would be separate from the funds allocated to the province for reconstruction work, which, in Sabang's case, was being funded by the BRR, provincial government and central government.

"We received Rp 100 billion out of last year's national budget, and Rp 195 billion from this year's budget. In addition, we received Rp 3 billion from the provincial budget in 2006, and will receive another Rp 1.5 billion this year," he said.

"As for the BRR, this year they are going to spend Rp 45 billion on rehabilitating local infrastructure, including the water purification plant and water mains," he said.

Speaking to The Jakarta Post earlier, the director of the Aceh Provincial Investment Coordinating Board, Teuku Zainal Arifin Panglima Polem, said that a "world-class resort" would also be built on Sabang.

"Sabang is an excellent place for ecotourism with its beautiful beaches. It's also the perfect spot for divers. We plan to develop the island as an exclusive resort so as to attract big-spending tourists," he said.

According to a recent BKPS report, some 70 to 80 foreign tourists visit Sabang every weekend, with many of them being NGO officers working in Aceh. Tourists also come from German and other parts of Europe for the excellent diving around the island.

Tanjung Priok to Become Hub Port

Monday, 09 April, 2007 | 20:55 WIB

TEMPO Interactive, Jakarta: The government will increase the capacity of Tanjung Priok Port, Jakarta and transform the harbor to become the national collector or hub port.

This plan was discussed during a cabinet meeting on Wednesday (4/4). Now what matters is how to put the plan into operation,” said H. Harijogi, the Director General of Sea Transportation, on Thursday (5/4) last week.

According to him, it is planned that the Koja Container Terminal and the Jakarta International Container Terminal will be merged.

The government will also take steps to overcome current difficulties, including the restriction of port access in terms of the flow of goods.

The State-Owned Enterprises State Ministry and the Finance Department are currently studying the plan.

“Hopefully it can be implemented as soon as possible,” said Harijogi.

He went on to say, the increase of Tanjung Priok's capacity will reduce dependency on shipping trade goods through ports abroad, as happens now.

Around 80 percent of Indonesia's export goods must still go through Singapore's port.

“So in the future, it isn't only being a feeder port but also being oriented towards end destinations,” said Harijogi.

Currently. Tanjung Priok Port is ranked in 23rd position out of the top 30 ports in the world.

“Growth is relatively slow if compared to the regional ports' growth rate,” said Saut Gurning, a maritime observer from the Technology Institute of Surabaya.

Saut sent his research results by electronic mail to Tempo last week.

Harun Mahbub

Batam authority to cooperate with BNI on port transactions

Fadli, The Jakarta Post - 2007-02-07 15:54:22

Batam, February 05, 2007 (The Jakarta Post) - The Batam Industrial and Development Authority has announced it will cooperate with Bank Negara Indonesia (BNI) to provide banking services based on its electronic data capture (EDC) system.

Port service transactions, which will now be conducted online, in Batam amount to Rp 450 billion (US$48,13 million) each year with an average of 100,000 ships docking in Batam annually.

The merger was marked by the signing of a memorandum of understanding between BIDA and BNI at the Sumatra Promotion Center in Batam, Riau Islands, on Wednesday.BIDA chairman Mustofa Wijaya said the cooperation was part of the one-roof service program in Batam, declared a special economic zone by the government.

"We wish to facilitate investors' activities in Batam. As an initial step, we will use the E-payment system in order to avoid meetings between officers and businessmen, thus a step to create good governance," said Mustofa.

Mustofa said that BIDA would also pursue the possibility for other sectors to be served by the electronic banking service so as to facilitate foreign and local investors' business ventures in Batam.

"We will not only do this with BNI, but chances are also open for other banks. But, technically, the human resources at BNI are quite ready for the partnership," said Mustofa.<>

"The figure could increase each year, depending on how BIDA draws foreign and domestic investors to do business here. As for BNI, the partnership is very essential, because no other banking service providers have come forth so far. Despite that, we don't wish to monopolize this sector," said Gatot.

Gatot said that besides working with BIDA in handling the online port information management system in Batam, BNI will also collaborate in promoting Batam as an investment destination in Indonesia.

BNI will promote Batam through its five overseas branches in London, Tokyo, Singapore, Hongkong and New York, which can be used as information centers by BIDA to sell its special qualities to potential investors.