Coal buy­ers spooked by new ship­ping rules

Maritime Gateway - - International News -

Buy­ers of In­done­sian coal are hold­ing back or­ders af­ter the gov­ern­ment is­sued new ship­ping rules for coal and crude palm oil that would re­strict ex­ports to In­done­sian ves­sels. Jakarta is­sued rules in Oc­to­ber 2017, re­quir­ing coal and palm oil ex­porters to use In­done­sian-flagged ves­sels and In­done­sian in­sur­ance com­pa­nies, to boost the role of the ar­chi­pel­ago’s ship­ping in­dus­try. Traders de­scribed the new rules as dan­ger­ous as they could af­fect ex­port vol­umes and state rev­enues if ship­ping con­tracts had to be rene­go­ti­ated to shift to in­sur­ance and freight (CIF) con­tracts from free-on-board (FOB).

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