Indonesia’s logistics industry remains resilient despite geopolitical tensions, volatile freight rates and rising operating costs that continue to pressure profit margins, a logistics executive said, as steady domestic economic growth supports trade and distribution activity.
While shipping volumes have increased during the first half of 2026, logistics companies are finding it more difficult to maintain profitability and service quality as global supply chains face renewed disruptions.
“In general, the first half of 2026 has been positive in terms of trade activity, but operational and profitability challenges remain significant,” said Hesty Rosmawaty, Director of Gateway Container Line.
“Volume growth does not necessarily translate into profit growth because operational costs, freight rate uncertainty, vessel capacity and geopolitical developments continue to affect the industry,” she said.
Indonesia’s economy expanded 5.61% in the first quarter of 2026, providing support for logistics demand through resilient domestic consumption and increased industrial activity. However, Hesty said the industry’s primary challenge is no longer demand but maintaining reliable services and protecting margins amid rapidly changing market conditions.
Renewed tensions in the Middle East have disrupted global shipping, with several international carriers avoiding the Red Sea and Suez Canal due to security concerns. Longer alternative routes have increased fuel consumption, insurance premiums, emergency surcharges and transit times.
“The impact has been significant, particularly on trade routes connected to the Red Sea, the Suez Canal, the Middle East and Europe,” Hesty said. “When carriers reroute vessels, companies face not only longer distances but also higher operating costs and greater uncertainty over shipping schedules.”
She said vessel arrival times have become less predictable, transshipment processes have lengthened and vessel connections have become increasingly difficult to coordinate. In some Asian trade lanes, vessel and cargo space availability has also tightened as shipping networks have been reconfigured.
As a result, freight forwarders have had to increase operational flexibility by adjusting shipping routes, identifying alternative ports and preparing contingency plans to minimize disruptions.
Despite global headwinds, Indonesia’s trade data has shown resilience. Non-oil and gas imports rose 13.16% in the first half of 2026 from a year earlier, reflecting stronger manufacturing and industrial activity.
Hesty said the increase would provide more sustainable benefits if driven by imports of raw materials, machinery and intermediate goods, as these support long-term industrial production. Higher import activity also boosts demand for services including customs clearance, warehousing, trucking and domestic distribution.
She said freight forwarders now play a broader role than simply transporting cargo, with success increasingly depending on their ability to optimize cargo consolidation, manage international networks and secure shipping capacity during periods of disruption.
Looking ahead, Hesty said competition in the logistics sector will increasingly be defined by operational efficiency, technology adoption, international partnerships and problem-solving capabilities rather than price alone.
She added that while the outlook for the second half of 2026 remains positive, companies must remain alert to further geopolitical and market uncertainties.
“The second half is not simply about pursuing higher volumes,” she said. “It is an opportunity to improve the quality of growth while maintaining profitability.”
(See more at: https://theshippinggazette.com/gateway-reports-strong-first-half-growth/)
