Container charges to overseas routes increase 40%

A surge of 100% in ship fuel prices in Singapore and at Jakartas main harbor, the Port of Tanjung Priok, over the past year has boosted operational costs for shipowners by 40%, impacting the container shipping industry. Fuel prices in the first semester hovered at US$500 per ton, compared to US$250 per ton in the first semester of 2009, it was reported. Fuel prices have been curbing the container transportation business recovery despite the current stronger tariffs, said Asmari Herry, director of PT Samudera Indonesia. Herry said the situation could get worse for Indonesias container shipping industry if the government reduced the subsidized fuel quota for national commercial ships. (August 4, 2010)