High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
March 11 (Bloomberg) — The Indonesian Navy seized 2,822 metric tons of tin from a vessel last week on suspicion the shipment failed to meet government rules for trade in the metal.
The vessel was stopped en route to Singapore from Bangka on March 6 and the cargo is being held at Batam port, First Admiral Harjo Susmoro, commander of the Western Fleet Maritime Security Task Force, said by phone yesterday. Part of the cargo belongs to members of the Indonesia Commodity and Derivatives Exchange and had proper documentation for export, said Fenny Widjaja, commissioner of the exchange, or ICDX, in Jakarta.
Indonesia, the world’s largest tin shipper, is seeking greater control over prices and supplies of the metal used as solder in smartphones and televisions, and required since Aug. 30 that refined tin be traded on the Jakarta-based ICDX before shipment. The rule has curbed supplies and Barclays Plc forecasts a fifth year of global deficit in 2014.
“I’m sure there won’t be any problems with our shipments, we will give all the documents,” Widjaja said in an interview in Pangkalpinang, Bangka Belitung, yesterday. “Our members shipped tin after being traded on the exchange as required by the rule. ICDX and the smelters will meet the Batam navy commander on Thursday to clarify.”
The vessel had 134 containers, including 85 with 1,670 tons of ingots owned by 12 ICDX members, said Widjaja. The remainder held solder and other forms of tin, he said.
“We suspect that the tin shipments were not in accordance with the trade ministry rule,” said First Admiral Harjo. Singapore, the country’s largest trading partner in Southeast Asia, was the destination for 71 percent of all tin exports last year, according to the trade ministry.
– Yoga Rusmana, Copyright 2014 Bloomberg.
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