WHY DOES NON-CONTAINERIZED CARGO TARIFF NEED ADJUSTMENT

Damas Jati - Jakarta, 22/09/2018, 20:29

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Business stakeholders have just aggreed for adjustment of tariff for non-containerized cargo (OPP/OPT) at Tanjung Priok  Port. Beginning October 1, 2018, the tariff will variously rise up, from 5 -20%, according to DKI Jakarta Stevedoring Companies' Association (APBMI DKI Jakarta). 


The aggreement letter signed in early August by some associations including APBMI DKI Jakarta, Indonesia National  Shipowners Association (INSA Jaya), Indonesia Logistics and Forwarding Association (ALFI/ILFA DKI), Indonesia Importers' Association (GINSI) and witnessed by Tanjung Priok Port Authority (OP) and Pelindo II Branch Tanjung Priok is effective for 2 years or until the Ministerial Decree (KM) 35/2007 on Port Tariff Guidelines is getting revision.


"Stakeholders understand with the reasons why the OPP/OPT tariff should get adjustment and associations have aggreed with our proposal and have signed the document for new tariff," Chairman of APBMI DKI Juswandi Kristanto told the press on Friday, September 21.


According to the document released by the APBMI DKI, the tariff increase ranges from 5 to 20%, except for the domestic dry bulk that carried by barge, having no increase. 


The document further said that the OPP/OPT tariff for general cargo (GC) via wharehouse will rise 7.4%, from Rp81,075 to Rp 87,80 per ton or metric cubic (T/M3), while GC truck lossing will rise 12%, from Rp57,720 to 64,655/(T/M3).


The dry bulk using vessel will rise 7%, from Rp 47,000 to 50,290/(T/M3); dry bulk using barge has no increase, still at Rp 27,500/(T/M3). 


The liquid bulk both domestic and international will both rise by 20%. International liquid bulk will rise from Rp 28,000 to 33,600/(T/M3),  while domestic liquid bulk from Rp 23,000 to 27,600/(T/M3).


Livestocks tariff will rise 5%, in which cow, horse, and buffalow will rise from Rp65,800 to 69,900/head, while goat, sheep and pig will rise from Rp 16,920 to 17,766/head.


Vehicles will rise 5% in average.  Motorcycle will increase from Rp71,440 to 75,012/unit; car (up to 9M3) will rise from Rp 271,660 to 285,243/unit; car (9 to 13 M3) from 348,740 to 366,177/unit; and the ones over 13M3 will rise up from  Rp415,480 to 436,254/unit.


The tariff increase of vehicles is also addressed to truck, bus  exavator, back hoe, tractor. Those with weight less than 28 T/M3  will increase from Rp729,440 to 765,912/unit;  28 T/M3 to 33T/M3 from Rp 866,680 to 910,014/unit; 33 T/M3 - 40 T/M3 will be up from Rp 1,076,300 to 1,130,115/unit;  40 T/M3- 50T/M3 will be from 1,322,580 to 1,388,709/unit; and those over 50T/M3 will rise from Rp1,622,440 to 1,703,562.


The rise will also be addressed to mechanic surcharge (forklift). The surcharge for forklift will rise as follow: 5 to 10 T/M3 per colli will up from Rp22,879 to 27,455; 10 to 15T/M3 per colli will up from Rp32,175 to 38,610; 15 to 25 T/M3 per colli will up from Rp 40,755 to 48,906, and for the ones a25 T/M3 per colli will be ctual cost.


For wire road, pipe, and pulp will rise from Rp22,879 to 27,455. Meanwhile, the use of  forklift for truck lossing will be charged at 50% of the tariff. 


Labor Cost the Main Reason


The increasing operating cost of stevedoring companies is reasioning the association to take this step. According to Juswandi, some components of operating cost including labor wage (WHIK), office personal cost, and costs implicated from inflation have increased significantly since 2013, while the tariff have never been adjusted ever since.


"Yes, cost for TKBM (labor) cost, totaling of WHIK of components has significantly triggered a higher operating costs," he said, adding that among the factors, the increasing WHIK remained the main factor of such decision. 


APBMI DKI Jakarta General Secretary Aria Senopati Lihu and Executive Secretary Aris Hartoyo amended it, saying every year cost for labor increased. "In 2013-2018, the cost for TKBM  (totaling of the WHIK components) increased by 50.16%," said Aris. 


"We have to do this (tariff adjustment) to cover those costs," Aris said further. 


Meanwhile, Aria said that the tariff set up in 2013 was actually effective for two years only, until 2015. The new tariff should actually be set up in 2015. "There should be an adjustment in 2015, but we didn't do it. Unfortunately, the labor costs continued to increase since 2015," he said, adding: "Other factors of personal cost as well higher expense due to inflation have make us suffer more operating cost."


According to data, since 2015, the WHIK continued to increase, by 21.99% (2015), 12.57% (2016), 6.98% (2017), and 8.62% in 2018. So, from 2014 to 2018, the total increase reach 50.16%. 


Acceptable


Some contacted sources from cargo owners, shippers, and consignees understood with such decision, saying such decision was accepted in view of the reasons behind it. 


Chairman of Indonesia Logistics and Forwarders Association (ILFA/ALFI) Yukki Nugrahawan Hanafi admitted that the decision has been taken after a very long process of discussion. ALFI understands that it was a hard decision, however it can be understood and accepted. "It is DPW (ILFA DKI) authority. But, we, DPP (ILFA Headquarter) is supporting DPW's decision," said Yukki.


"We all understand with the reasons of the tariff adjustment, due to labor wage increase. I think cargo owner will understand it, if all run transparently," he said, calling for a better communication to cargo owners to explain why taking such decision. 


Chairman of Indonesia Importers' Association Chapter Jakarta (GINSI DKI) Capt Subandi echoed the view, saying the decision is normal and acceptable since there is no tariff adjustment since the old tariff ended in 2015. 


In addition, Subandi added some points why this tariff can be accepted. "This is also a compensation of tariff decrease of gantry lufting crane that was reduced from Rp 17,500 to 11,000 in Tanjung Priok several months ago," he said. 


Moreover, he added, compared to Tanjung Perak Surabaya, the tariff of non-containerized in Tanjung Priok is much lower. "Let us say the tariff for general cargo via warehouse. In Tanjung Perak the tariff has reached Rp100,000, while here (Tanjung Priok) is still lower, even for the new tariff," he said. ***


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