Amid the logistics industry slowdown this year, BS Line (PT Bintang Samudra Indonusa) has shown a positive performance. The company has reached over 140% of the yearly target and expects to achieve 200% by the end of this year. Such a fantastic achievement for a newcomer!
The global economic slowdown in 2023 has significantly hit the transportation and logistics industry. Many reports from the shipping lines and logistics providers have said that, mostly, their achievement was down by over 50% in the first half (H1 2023) compared to the same period in the previous year (H1 2022). Most of them also failed to reach their yearly target. On average, shipping and logistics companies’ achievement ranged from 50-70% of the target during H1.
Following the economic slowdown, the trade volume is reported to decrease significantly. On the other hand, the freight rate, which played a key role in the fantastic performance of the industry in 2022, has been totally in free fall since early this year. These two factors are claimed as the two dominant factors for the low performance of the industry this year.
“I think it is true. This year, there was a decrease in trade volume on one hand, while on the other hand the freight rate was far below last year,” commends Halim Sutrisno, BS Line Director.
But what makes the newcomer BS Line still enjoying a positive performance under such circumstances? “It is true that we (BS Line) are a newcomer. Legally, we celebrate our 1st anniversary this month, though we started to run operations in November last year (2022). And now, here we are. Coming to this month (August), we have reached over 140% of our yearly target, thanks to the team who have run an appropriate strategy in line with our vision and mission,” said Halim.
Halim explained some key factors that support the company to reach this position. First, human resources. “Though we are newcomer, but we are supported by a solid, energic, and extensive-experienced team in this industry,” said Halim.
Halim himself has extensive experience within the industry. “I have over 16 years of experience in the logistics provider industry creating and developing consolidation for export and import business,” Halim said.
He started from the operational staff of export in 2006, and then he moved to the marketing division in 2007. The 2018 was the turning point for Halim, who started handling overseas agents. Based on such extensive experience, Halim said: “I am so confident to start with a new corporation.”
“Most of our team are young, energic, and multi-talented,” he said.
Second, the appropriate strategy of customer-centric that the BS Line has taken. “In line with our mission to provide excellent services, offer competitive tariffs, and give customers hospitality, we always go through the customers’ needs,” said Halim.
Since it orients on customer needs, BS Line can handle various cargoes from several sectors, including the automotive industry, dangerous goods, manufacturing sectors, electrical parts, healthcare devices, essential oils & food ingredients.
Third, business focus. Halim explained that in line with the vision of the company establishment – To be an LCL Consolidation Leader in the Indian Subcontinent – BS Line has focused on two aspects of the services and coverage. In terms of service, BS Line has focused and will continue to focus on LCL (less than container load) consolidation.
“LCL consolidation is still promising, not only last year (2022) but also this year and the coming years,” he said.
In terms of coverage, BS Line has focused on the Indian Subcontinent Region.
However, Halim affirmed that BS Line also provides other services of air freight, inland transport, warehousing, project cargo, and customs brokerage.
Regarding coverage, BS Line also handles other regions of Asia & Australia, Europe, the Middle East, Africa, the USA & Latin America.
“We are the most promising company in the same field. Furthermore, we are recognized for our ability to perform professionally with our network through Indian Subcontinent, Asia, Europe, Middle East, Africa, Australia, USA & Latin America. In addition to India Subcontinent, Latin America is also on our main focus. And, of course, we also handle domestic.”
The Champion
‘To be an LCL Consolidation Leader in the Indian Subcontinent’ is written as the vision of BS Line. “Of course, there are reasons behind this vision,” said Halim.
Halim explained the market of the Indian Subcontinent has extensively provided a significant contribution to the group. It is reasonable as in a regional scope of intra-Asia trade, the Indian Subcontinent remains the second after China.
“India Subcontinent is one of the biggest contributors to our group,” said Halim.
Halim himself has been extensively involved in handling, building, and developing the Indian Subcontinent market for the group. “I have over 16 years of experience in the logistics provider industry creating and developing consolidation for export and import business, including for the market of this region.”
As the market is so potential, the group shareholders decided to set up an independent company (BS Line). “This is a strategy to optimize the market. In addition, this is also a strategy to maintain our overseas agents,” he said.
Halim admitted that this region’s market has great potential and will be more promising in the future. “Now, we reached 40% of the target market to Indian subcontinent. There are still so many rooms to be developed to reach our 100% target in next two years.”
But, with only 40% market achievement in this region, BS Line has exceeded its yearly target by 40%. This region contributed the highest to the total BS Line sales, which reached more than 20 boxes per month.
“We will continue to develop this market. India Subcontinent is the leading market in the future,” he said.
BS Line targets to be the leader in the market to this continent, both export and import. “Now, mostly we handle export, while import has not been optimum yet. But, in the future we will handle both.”
Halim explained that if all runs as planned, BS Line will become the leader in the market. “If all these plans run as expected, we hope that we will become the top ten consolidators in the country in the next five years and become the champion of the Indian Subcontinent.”
Future Expansion
In addition to continuing market expansion and optimizing the Indian Subcontinent, BS Line will develop other regions. “First of all, we will continue to optimize our Indian Subcontinent. There is so many rooms to develop, not only in export but also import. As we have said, now, we have reached around 40% of our target. We make an effort to be at 100% position in the next two years.”
In parallel, the company will also develop other potential routes, including to Latin America, China, Asia, Europe, the Middle East, Africa, Australia, and the USA.
BS Line will also optimize its scope of service from its existing core sea freight service. “We will, in parallel, develop our services of air freight service, inland transport, warehousing, project cargo, and customs brokerage.”
BS Line is also eyeing some other regions nationwide to open branch offices. “Soon, we will open a branch office in Surabaya in view of the market potencies from East Java Province,” he said.
This article was published in ISG Print Magazine September 2023 Edition.
