Gateway Container Line, Indonesia’s leading consolidator, has just invited colleagues (forwarders) in Surabaya to build collaboration for a better business. Gateway Surabaya Branch Manager Yusuf Pujianto told Indonesia Shipping Gazette the reasons behind the collaboration idea and its benefits to both colleagues (forwarders) and end customers.
“The forwarding business will face more and more challenges in the future. Innovation is needed in making business survive. Collaboration among forwarders is one way to face those challenges,” Yusuf explained.
The future business of forwarding, according to Yusuf, will be colored at least by two things: the liners (shipping lines) action to grab direct customers and the old problem of Indonesia’s import that runs under CIF term of trade, giving lower bargaining power of local forwarders.
“We have heard that there is a trend of the shipping lines that massively grab direct customers, directly to end customers. The end customers of both import and exports are manufacturing.”
This trend will become a challenge and threat for the future survival of forwarding business in view of the fact that forwarders are playing as middle man or brokers between end customers with shipping lines.
“In responding to those trends, building collaboration among forwarders is so important and strategic. Of course, we don’t expect that liners will directly do business with direct customers. So, forwarders must unite and collaborate in responding to this trend,” Yusuf said.
Second, Indonesia’s imports are mostly run under the CIF term of trade. Under the CIF scheme, sellers or shippers can choose transporters and forwarders. Usually, they (shippers/sellers) will choose forwarders at the port of loading, not the ones (forwarders) in Surabaya. This makes cost is higher, as there will be double charges by forwarders at the port of loading and the forwarders at the Surabaya.
“So, our collaboration is also meant to build bargaining power of buyers. In the meaning to say that those end customers (buyers) can prepare the transportation facilities by themselves, thus will control the cost. The cost will be more economical,” he said.
Gateway Offers Solutions
In responding to those problems, Gateway has invited colleagues (forwarders) in Surabaya to join the Gateway new service, LCL import consol. “It is our new service, the expansion of our existing service,” Yusuf said.
Gateway Surabaya has been running LCL import consol from two hubs of Singapore and Hong Kong. Beginning this year, Gateway has opened an LCL import consol from three others hubs of Shanghai (China), Ho Chi Min (Vietnam), and Pusan (South Korea).
“Now, we offer direct consol from Pusan and Shanghai to Surabaya, without transshipment in Hongkong. We also offer direct consol from Ho Chi Min to Surabaya, without transshipment in Hong Kong or Singapore. We offer easiness in the process of import,” he said.
“Many raw materials are imported from Vietnam. Our new service offers easiness to end-users and forwarders in Surabaya in importation from Vietnam. So, we offer our colleagues (forwarders) in Surabaya to collaborate with us through this new service. We prepare the service, and they (forwarders end-users) prepare the cargo,” said Yusuf.
Yusuf also said that this collaboration requires trust among the involved parties, between Gateway as the service provider with both forwarders and end-users.
“This collaboration is built under thrust, thus giving mutual benefits to the parties,” he said.
As many as 80 forwarders joined the Gateway Customer Gathering in Surabaya on November 26, 2021, in which Gateway presented the concept for collaboration. “They are so excited with this concept,” he said.
Of the total 80 forwarders that joined the Gathering, Yusuf expects 30-40% to join this Gateway direct consol soon. Since the beginning of this year, some of the forwarders have collaborated with Gateway amid the pandemic Covid-19 outbreak.
“We enjoy 20-30% export increase from Surabaya this year. Some are contributed by our colleagues (forwarders) who, with some reasons, have chosen us to handle their cargo,” said Yusuf.
