News / Jakarta government hooks up with carriers to bolster exports in capacity crisis

Tanjung Priok Port. © Paulus Rusyanto Dreamstime.com

Indonesia has joined a list of governments that have stepped in to support local shippers affected by capacity and equipment shortages in container shipping.

The Ministry of Trade has teamed up with the Indonesian Chamber of Commerce and Industry to secure shipping slots from mainline operators to transport goods from Indonesia to Los Angeles, New York, Savannah, Baltimore and Florida in the US, as well as China, South Korea, Japan and other Asian locations.

Trade minister Muhammad Lutfi said: “To solve the issues facing our exporters and shippers, the ministry and chamber of commerce are seeking breakthrough solutions. The container shortage has become Indonesian shippers’ biggest problem.”

The state’s collaboration with mainline operators ensures that Indonesian businesses will benefit from the global economy’s gradual recovery from the Covid-19 pandemic.

Mr Lutfi added: “With this, Indonesia will be able to export electronic appliances, shoes, clothes and furniture.”

He said mainline operators had promised to supply 800 to 1,000 containers to Indonesian exporters every month, and 3,500 to 3,800 containers monthly to export Indonesian food and beverage items worldwide.

The ministry’s web portal, Inatrade, will also include a section to match shippers seeking containers with freight forwarders and liner operators to expedite transport arrangements for exporters.

Tight supply of shipping capacity and containers has seen freight rates soar to unprecedented levels amid the pandemic, adding to shippers’ financial burdens. This has prompted the governments of the US, China, Taiwan, Thailand and South Korea to devise various solutions.