40-foot Export Container Scarcity Opportunity for Local Shipping: Govt

TEMPO.CO, Jakarta - The Transportation Ministry’s director of ocean transport, Antoni Arif Priadi, on Wednesday said domestic shipping companies must use the opportunity amidst the scarcity of 40-foot export containers, especially considering the surplus in local freight transports. 

“In some cases, exporters have egos of not supporting the national shipping industry and cop-out the easy way to export through FOB (free on board), this causes overseas importers to decide its freight transport,” said Priadi to Bisnis.com on Wednesday, December 9.

He argues it is time for exporters to negotiate export cost agreements and freight insurance where exporters’ bid price for buyers would include the products’ value, shipping fees, and insurance. Hebelieves this would benefit local shipping transport services and insurers.

The transportation ministry is currently in coordination with stakeholders as the current condition remains to be a business-to-business issue. 

Priadi said this problem is caused by the imbalance of export and imports in the shipping industry is due to the COVID-19 pandemic and said businesses have pitched to repo or borrow in a short-term period empty containers from overseas, mainly from Malaysia and Singapore, with the expenses being covered by the business owners themselves.

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