Indonesian port operator Pelindo II will increase container storage charges by up to 500% at Tanjung Priok in Jakarta, Seatrade Asia online reports. “We will enforce this regulation because the process of loading and unloading containers in Tanjung Priok is now taking much longer than before. This is a penalty for errant business people,” said Richard Joost Lino, president director at Pelindo II.
The current storage fee is IDR20,730 ($2.28) per container per night and a progressive rate will be imposed on containers that stay for more than three nights.
Due to growing container traffic at the port, the average time needed to unload a container from a ship and take it out of the port has increased to six days from 5.5 days last year, according to Lino.
He added that the same process only required an average of three days in Japan and Malaysia, and one day in the US.
The new container storage charges are expected to be effective from this week.
Natsir Mansyur, vice chairman for trade, distribution and logistics at Indonesian Chamber of Commerce and Industry, said the 500% increase was too much as businesses would be forced to raise the price of goods and consumers would have to carry the burden.
The current storage fee is IDR20,730 ($2.28) per container per night and a progressive rate will be imposed on containers that stay for more than three nights.
Due to growing container traffic at the port, the average time needed to unload a container from a ship and take it out of the port has increased to six days from 5.5 days last year, according to Lino.
He added that the same process only required an average of three days in Japan and Malaysia, and one day in the US.
The new container storage charges are expected to be effective from this week.
Natsir Mansyur, vice chairman for trade, distribution and logistics at Indonesian Chamber of Commerce and Industry, said the 500% increase was too much as businesses would be forced to raise the price of goods and consumers would have to carry the burden.