• Strike at Port of Tanjung Priok in Jakarta likely to cause severe supply chain disruption

    03 August 2017

    The Jakarta International Container Terminal Workers Union (SP JICT) is planning to stage a week-long strike action from August 3 to 10 at the Port of Tanjung Priok in Indonesia, in a protest against unpaid bonuses. The Port Authority of Tanjung Priok is reportedly aware of this situation and has implemented contingency plans to minimize the impact of the work stoppage on port operations. Dozens of workers from surrounding ports have been brought in to assist with services.

    Located in northern Jakarta, the Port of Tanjung Priok handles more than 50% of Indonesia’s trans-shipment cargo traffic. The port has four cargo terminals with the Jakarta International Container Terminal (JICT) being the largest container terminal in Indonesia. A number of carriers are scheduled to call at JICT, including CMA-CGM, APL, COSCO, MSC and the Maersk Group. In order to avoid operational disruptions, these carriers have reportedly decided to use alternative terminals for loading and discharging activities during the days of the announced strike. These terminals include New Priok Container Terminal 1 (NPCT 1), TPK Koja Terminal and Tangguh Samudera Jaya (TSJ) Terminal.

    Local sources reported that union members plan to strike over the non-disbursement of the 2016 yearly bonus. Potential impacts of the strike action may include delays in berthing for vessels, additional charges and transit time for loading and unloading activities as well as delays in customs clearance. Even red lane shipments would be delayed as crane operators are likely to participate in the strike.

    During the strike period, congestion and delays are likely to occur at the alternative terminals due to a higher amount of containers being processed and with capacity being smaller than at JICT. Long queues are to be expected and the risk for export units being left at quay may increase. Vessels will receive a tight move-count restriction that meets the reduced handling capacity at the terminals. Congestion surcharges are, however, unlikely to be imposed by carriers, unless the strike period is extended. Customers are advised to delay shipment of critical cargoes and expect additional costs related to demurrage charges at the terminals.

    Monitor DHL Resilience360 for more updates on the situation.