Port Congestion and Cargo Handling Delays Increase Logistic Cost

Delays in vessel berthing and cargo handling have once again come under scrutiny amid rising logistics flows from late 2025 to early 2026. A number of ships arriving at several ports have been forced to wait five to six days before being able to berth and unload cargo. The slowdown is widely suspected to be caused by aging and frequently malfunctioning loading equipment, which has significantly reduced productivity at several terminals.

Sebastian Wibisono, Chairman of the East Java chapter of the Indonesian Logistics and Forwarders Association (ALFI), said that operations at Pelabuhan Tanjung Perak have taken considerably longer than usual. Previously, vessels could complete berthing and cargo handling within a maximum of three days, but the process now stretches to as long as six days. The prolonged turnaround time has contributed to container shortages at the port.

According to Sebastian, several cranes and cargo-handling units particularly at Nilam and Mirah container terminals within Tanjung Perak are already old, which has slowed operations. He stressed that the state-owned port operator PT Pelabuhan Indonesia (Pelindo) should immediately rejuvenate equipment across multiple terminals. Ideally, the Container Processing Area (CPA) should be able to handle 30–40 containers per hour, but current capacity has dropped to only around 10 containers per hour. Equipment upgrades, he argued, would significantly accelerate loading and unloading activities.

As a result of the prolonged handling process, goods distribution has also been disrupted due to container shortages at several ports. Forwarding companies with fixed shipping schedules have been forced to delay deliveries. Sebastian cited his own experience shipping fertilizer raw materials to Sampit, where securing empty containers had been difficult since December. Shipments only partially resumed in January 2026.

Under normal conditions, his company would secure between 20 and 40 containers per day, enabling shipments of up to 1,000 tons daily. However, with only 10 containers available, daily shipments have fallen to around 250 tons.

Similar delays have also been reported at Berlian Terminal within Tanjung Perak. Steven H. Lesawengen, Chairman of the Surabaya branch of the Indonesian National Shipowners’ Association (INSA), said cargo-handling delays there were caused by unprepared equipment. Management of Berlian and Mirah terminals had yet to comment at the time of reporting, while Nilam terminal management denied any equipment breakdowns.

Meanwhile, a representative of Terminal Petikemas Semarang (TPKS), Komang, stated that vessel berthing and cargo-handling delays in Semarang remain within reasonable limits and are largely influenced by external factors, particularly unpredictable weather. He acknowledged that vessel traffic and cargo volumes surged sharply from December through January, driven by heightened distribution activity at the end and beginning of the year. Combined with unfavorable weather conditions, the spike in traffic has slowed service processes.

To mitigate delays and maintain the smooth flow of goods, TPKS plans to implement several measures, including adding four container cranes, extending the pier by 275 meters, and expanding stacking areas. These steps are expected to boost terminal productivity, reduce vessel waiting times, restore smoother container supply to shipping partners, and help stabilize operational shipping costs.

Ports are a critical backbone of Indonesia’s logistics system. Inefficient port services may erode competitiveness, drive up operational and logistics costs, and ultimately result in higher prices for consumers across the country.

The delays are occurring during a peak logistics period driven by year-end demand, post-holiday restocking, and ongoing industrial activity. Industry players warn that without immediate infrastructure upgrades, better maintenance, and improved port management, congestion could persist and undermine Indonesia’s competitiveness as a regional trade and shipping hub.

Share

Recommended For You

How the New Section 301 Forced Labor Duties Affect Global Supply Chains

The United States introduced a significant new trade measure on July 24, 2026, when the Section 301 Forced Labor Import Duties officially took effect. The policy represents one of the most sweeping changes to U.S. import regulations this year because it applies broadly to imports from 60 economies rather than targeting only specific products or industries.

Rising Global Logistics Costs Spark Inflation Concerns

Global inflation risks are entering a new phase. While soaring energy prices have been the dominant driver of inflation in recent years, a sharp escalation in international logistics costs, triggered by mounting geopolitical tensions, is emerging as another major source of price pressures with potentially far-reaching consequences.

Trump Raises Stakes in U.S.-Canada Trade Tension with 50% Tariffs

Trump has escalated trade tensions with Canada once again, announcing a new round of sweeping 50% tariffs on most Canadian imports. The latest tariffs would apply to a broad range of Canadian goods entering the United States, marking one of the most significant increases in trade barriers between the two countries in recent years.
PHP Code Snippets Powered By : XYZScripts.com