Indonesia's transshipment ban forces scrap traders to divert cargoes, seek out new supply

Traders are scrambling to divert their transshipped containerized cargoes of ferrous scrap bound for Indonesia to other destinations and find new supply sources in response to new import restrictions issued last month by the country’s trade ministry.

"I'm working to divert my containerized scrap cargoes to other ports in Asia because the new regulations do not allow transshipment," a trader in East Asia said. Regulation 84/2019 as seen by Fastmarkets stipulates that ferrous scrap imports must be shipped directly from the exporting country, and cargoes are not allowed to be transhipped through other countries. The registered seller also must be in the same country where the ferrous scrap is exported from. Any shipment landed by way of transshipment has to be re-exported. The discharge of scrap imports is now restricted to just the ports of Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung...

Published

Paul Lim

November 21, 2019

07:30 GMT

Singapore