Can protectionism and shipping go together?

PRESIDENT Donald Trump's recent announcement that the US will impose high tariffs on imported steel and aluminium has caused consternation around the globe, with many observers fearing that we could be heading into an era of trade wars and increased protectionism.

In the context of that political storm, a dispute which involves both the shipping industry and this region is likely to attract very little attention; nevertheless, a recent move by Indonesia has raised some important issues.

Certainly European shipowners are deeply concerned by a new Indonesian decree that reserves the transport of certain commodities for Indonesian shipping companies. The decree affects coal, crude palm oil, rice and goods for government procurement.