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Jakarta eyes 12% hike in container handling charge

Publication Date : 02-06-2014

 

Indonesia's Transportation Ministry is considering raising the container handling charge (CHC) for shipping companies by 12 per cent to US$93 per container from the previous level of $83.

“[The ministry] is still reviewing [the plan]. The CHC increase will be $10 per box to $93, from the previous $83,” the ministry’s director general for sea transportation, Bobby Mamahit, said as quoted by kompas.com in Jakarta on Friday.

Bobby explained the government considered increasing the CHC as it had never been increased since 2008.

The CHC reached $150 per box in 2005 before the government decreased it to $83 in 2008.

The increase, however, would go along with service improvements at ports, he said.

“If the increase in the CHC is not balanced with an improvement in services, the distribution cost will be more expensive,” he said.


 

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