Tuesday, 10 June 2014

INSA : SURCHARGE LIFTING WOULD ENHANCE EFFICIENCY IN SHIPPING




Surcharge by foreign shipping companies which was accumulated in Terminal Handling Charg­es at Tanjung Priok harbor was proposed to be elimi­nated as to utilization was unclear and was only en­joyed by foreign liners operating in Indonesia. The surcharge which was supposed to be borne by goods owners were classified as illegal collection but until now still being treated as legal.

The Indonesian National Shipping Associa­tion [INSA] supported lifting of surcharge provided the harbor management charge handling cost directly to goods owners. Chairperson of INSA, Camelia Har­toto, approved lifting of surcharge on Friday 123/51 after long negotiation. Carmelite said that she agreed surcharge to be lifted provided harbor managers bill CHC tariff directly to goods owners.
Besides, lifting of surcharge would make shipping more efficient.

She remarked that elimination of surcharge would eliminate perception that shipping industry was enjoying benefit from increased cost. She under­scored that so far all expenses billed by liners were official procedure with receipt and not transacted il­legally. "If surcharge was lifted, I am sure the ship­ping industry would be more efficient," Carmelite remarked.

She said further that if there was any tariff increase at all it should be based on reasonable argu­ment and guarantee that the services rendered would be better. Ideally, the increase must not burden cus­tomers and on the other hand also not disadvanta­geous to harbor managers. All parties must realize that maximized harbor service should be the starting point whether CHC tariff would be increased or not.

Meanwhile the Director of National Maritime Institute [Namarin] Siswanto Rusdi stated that today owner of goods at Tanjung Priok Harbor still had to pay for loading and unloading charges of international containers known as THC. Namarin reported that for containers measuring 20 ft in full container load [FCL] condition the cost was USD 95 per box broken down as: CHC USD 83 and surcharge USD 12. For contain­ers of 40 feet THC the cost was USD 145 per box consisting of CHC USD 124 plus surcharge of USD 21.

According to Siswanto, national interest should come first and it was not right to protect foreign shipping agencies who had been enjoying the surcharge. He said that if the surcharge accumulated in THC was eliminated, increase of CHC of 10% as supported by the association of service agencies at Tanjung Priok harbor would not exceed the THC cost now in effect.

Siswanto said that the process of terminal handling charges in Indonesian harbors caused per­formance of logistics in this county low, compared to that of neighboring countries. Index of Logistics performance was issued by the World Bank to evalu­ate perceptions of international freight forwarders in doing business in a certain country.

Based on Wold Bank's index of Logistics Performance 2012, Indonesia was in 59th position among 115 countries in the world. The position was a progress against that in 2010 when Indonesia was in 75th position but still below Singapore, Japan, Tai­wan, South Korea, China, and even Malaysia, Thai­land, the Philippines and Vietnam. Therefore if it must increase at all, increase of CHC cost must be focused on the effort to smoothen loading and unloading pro­cess of containers. (SS)

Business New - May 28, 2014

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