• Fuel Price Increases, Sailing Tariff Climbs

    JAKARTA – The Indonesian National Shipowners Association (INSA) said that the increase of transportation tariff to Eastern Indonesia, especially on Surabaya-Ambon route is driven by the increase of operational cost.

    Chairman of DPP INSA, Carmelita Hartoto said one of the contributors to the increase in operating expenses on the Surabaya-Ambon route is the increase in the price of fuel oil or marine fuel oil (MFO). MFO price by Carmeilita jumped 47% to Rp5,600 per liter.

    He added that the business expenses of shipping business is getting heavier because at the same time the amount of cargoes being transported has not experienced significant growth. “The fuel cost component is quite large on shipping operations,” he said in a press release received by Bisnis.com on Monday (2/10).

    Previously, businessmen in Ambon have objected to the increase of Surabaya-Ambon route cruise fares. Service users rate, the tariff increase made by the shipping party is not rational.

    Carmelita said, the real tariff of the Surabaya-Ambon route for 20-foot containers is currently only Rp7 million – Rp8 million. He emphasized that the tariff itself is still a gross tariff or can be done price negotiation. This is due to the Expedition Cargo Ship (EMKL) as the representative of the goods owner in practice always bargain the tariff.

    According to Carmelita, fluctuations in tariffs are a natural occurrence in sea transport services. Tariff adjustments are not only happening in Indonesia, but also by shipping companies for freight to foreign countries.

    Previously, shipping businessmen had lowered tariffs to KTI by 30% in line with the Sea Toll program launched by the government. However, the decline in tariffs was less impact on the decrease in logistics costs because the goods owner did not lower the tariff.

    ———
    Sources: http://industri.bisnis.com/read/20171002/98/694926/harga-bbm-naik-tarif-pelayaran-ikut-terkerek
    Translated by Aryputra PandeBIC

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