Local exporters forced to import empty containers

JAKARTA (JP): Indonesian exporters will have to import empty containers in order to continue their activities, currently threatened by a scarcity of containers, a business association's head has said.

The chairman of the Indonesian Footwear Association (Aprisindo), Anton J. Supit, said over the weekend that various export associations would negotiate with the shipowners association and request that they bring in empty containers.

"The least we can do is import empty containers even if it means paying a little more," Anton told The Jakarta Post Saturday.

Anton said he was afraid the shortage would soon hamper the delivery of goods, if exporters did not ensure the supply of containers soon.

The shortage could force exporters to use airfreight which would cost much more, or their buyers could impose penalties if their deliveries were late due to the lack of containers holding up shipments, he said.

The exporters could also lose their buyers, he added.

Many exporting companies, especially textile and shoe companies, are currently affected by the shortage in containers.

The Indonesian Textile Association (API) reported that its members were about 150 containers short, or half of the demand to export about 300 containers worth of garments to Europe last week.

The chairman of the Jakarta branch of the Indonesian Exporters Federation (GPEI), Rudi Hermawan, was quoted by Kompas daily as saying Saturday that there was a demand for about 3,000 more containers to export goods.

Anton said some shoe companies had pleaded for help because of the undersupply.

"This problem must be anticipated soon, before it becomes a bigger problem," he said.

He added that shoe exports needed more containers than other products, since shoes take up more space than products such as textiles.

Normally, containers are used by shipping companies which carry imports and exports in and out of the country.

Since the rupiah's value fell against the U.S. dollar and locally issued letters of credit have been rejected by foreign banks, imports have drastically declined compared to exports, forcing many shipping companies to abandon their containers in the importing countries.

Liner PT Djakarta Lloyd, for instance, has left about 2,000 containers at five Australian sea ports because imports from Australia had sharply fallen.

Djakarta Lloyd president Muntaqa said his company was in the process of gradually returning the empty containers.

Muntaqa said the cost of carrying empty containers was not much different for ones carrying goods: about US$200 from Singapore and between $800 and $1,000 from the United States and Europe.

Anton said a group of export associations including Aprisindo, API, GPEI and the Indonesian Importers Association would meet with the Indonesian National Shipowners Association next week to discuss the matter.

The export associations would ask for discounts from shipping companies for the importation of empty containers.

"We do not mind a slight increase in shipment costs, but at least shipping companies could offer cheaper rates on empty containers than they do on full ones," he said.

"Let us pay at least the overhead fee only, we would not mind even if they raised the price by, say, $100," he said, adding that shipping companies must also be willing to share the burden.

Shipping companies are likely to cooperate because they also have less activity now since imports have declined, he said. (das)