Local exporters forced to import empty containers

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)