Jakarta (VNA) – Indonesia's maritime logistics system is facing mounting pressure as container shortages, rising freight costs, and severe sedimentation at major ports threaten the competitiveness of Southeast Asia's largest economy.
For months, domestic shipping routes, particularly those outside Java, have suffered from container shortages, while soaring freight rates have disrupted supply chains and affected businesses and consumers alike.
One of the key causes is worsening sedimentation at seaports, which has reduced channel depth and limited the ability of ports to accommodate large container vessels.
Under Indonesian regulations, dredging activities fall under the authority of the Ministry of Transportation and are financed through non-tax state revenue managed by local harbour master and port authority offices (KSOPs). Port operators are not allowed to carry out dredging independently.
Delays in dredging have rendered many port channels unsafe for commercial ships. To avoid running aground, shipping companies have reduced cargo loads to around 70% of vessel capacity.
The decline in operational efficiency has driven up shipping costs, extended delivery times, and weakened supply chain performance, ultimately increasing prices for consumers.
The sector is also being affected by global geopolitical tensions, particularly in the Middle East, which have pushed up fuel prices. Meanwhile, government limits on adjustments to basic freight rates have left many shipping companies facing financial losses.
To offset rising costs, some firms have imposed emergency fuel surcharges exceeding contractual agreements with shippers, leading to disputes and shipping delays.
At the same time, shipping companies are increasingly restricting the return of empty containers to major transshipment ports such as Tanjung Priok in Jakarta, Tanjung Perak in Surabaya, and Belawan in Medan due to high costs, worsening container shortages on domestic routes./.
