Indonesian shipping firms lose cargo to foreign lines

National shipping companies in Indonesia with interests in export transportation have shut down several routes following the entry of foreign-flagged ships, Bisnis Indonesia reported.

Co-Chairperson for Shipping Industry Development of the Indonesian National Shipowners' Association (INSA) Ibnu Wibowo revealed the application of the cabotage principle had not been able to prevent foreign ships from carrying export commodities.

According to him, the foreign-flagged ships were still transiting at several open ports in Indonesia while carrying export commodities despite the fact their cargoes could be considered transhipment ones, meaning they have to be carried by national-flagged armada.

"Foreign ships can still travel domestic routes, such as Tanjung Perak-Semarang-Panjang-Jakarta, before they go overseas, such as Singapore, while carrying direct export commodities," he said.

Ibnu exposed earlier this year a foreign shipping company, Compagnie Maritime CMA, opened Port Klang (Malaysia)-Tanjung Emas-Tanjung Perak-Panjang-Tanjung Priok routes and carried direct export commodities.

As a result, one national company, PT Caraka Tira Perkasa, had to shut down its Panjang-Port Klang route due to container loss. "Their cargoes went to Compagnie Maritime CMA, so that Caraka now has to find cargoes on other routes."

Source: Cargo News Asia