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Sabtu, 02 Januari 2021 19:31

Ministry of Transportation's Steps to Dampen Freight Cost Surging

Translog Today
(Pelindo III)


The Covid-19 pandemic has caused container freight or global cargo costs to rise sharply, hampering efforts to improve the performance of the shipping industry and the national economy.

"As a resulit, sea freight with containers in many countries has increased significantly, shipping times are longer, container stacking and loading-unloading at ports has taken longer," Director General of Sea Transportation of the Ministry of Transportation R. Agus H. Purnomo said, Saturday (2/1/2021).

To help the shipping industry overcome these difficulties, the Ministry of Transportation had prepared a number of steps.

"Firstly, we will supervise the acceleration of the loading-unloading process so that the containers could be distributed immediately and the ships could sail again. Secondly, we will speed up the containers leaving the port so that the containers return to the depot quickly," Agus explained.

To be more effective, the Ministry of Transportation hopes that the related ministries and state agencies will do the same. "We urge other ministries to support our efforts, accelerating the process of releasing long stay containers at ports," he pleaded.

Agus hopes the main line operator (MLO) provide loading space from Indonesia for export purposes. MLO is expected to provide 40 high cube containers.

"Next, we ask domestic shipping companies, especially members of INSA, to take the opportunity to take advantage of the reduced space for foreign shipping. We also urge exporters to substitute using 20 feet containers," Agus added.

For information, a number of countries have implemented lockdown policies because of the pandemic since the beginning of 2020, thus limiting the movement of people, goods, and the movement of ships.

Many shipping companies have reduced their activities to cut operating costs and stabilize freight costs. The global shipping industry began to stretch last July, when China began to increase the frequency of exports. However, this activity in China does not immediately restore the global shipping industry.

The reason is, container shipments are still limited because a number of countries are still implementing lockdown policies. Human resources to carry out loading and unloading activities are still limited, resulting in delays in shipping and container collection. (hlz/hlz)