As old wise words have said, in any problems and challenges there are always opportunities. Within the problems of shipping and logistics due to the Pandemic Covid-19 outbreaks, there are always business opportunities.
In our Cover Story of this September issue, our story relates to problems during the pandemic, including the freight rate hike that seems no end.
For logistics business players and shippers, this might be a problem, a challenge. But, not for shipping lines. Shipping lines absolutely understand it as a business opportunity. An opportunity to make more revenue, more margin, more profit.
For shipping business players, this is a ‘harvest time’ after they suffer much loss for more than ten years. But, now almost all shipping lines, the global container players, in particular, enjoyed high profit. The year 2020 and 2021, amid the Pandemic Covid-19 outbreak, are the harvest time for shipping lines.
However, we don’t want them (shipping companies) to create it in unfair ways. We all will give applause if their business is growing positive, but we also expect them to help other business sectors to grow up too. Business must grow in an ecosystem.
Ecosystem growth in this sector means any related business must grow up, not only shipping lines but also related business, including logistics and forwarding business players. So, since one of the problems that disrupt the process of a supply chain is container shortage, anyone, including shipping lines must jointly find the solution.
For this issue, we are going with recommendations shared by the Indonesia Logistics and Forwarders’ Association (ALFI) as we quoted in our cover story, in order to encourage the smooth flow of our trade.
ALFI has recommended solutions for the issue, including first, optimize the utilization of container turnover by seeking to release/utilize containers with un-clearance status (no clearance) at each port terminal. Shipping lines are expected to transparently submit an earlier report to the exporter and related agencies if their loading capacity is indeed problematic or has been fully booked by the exporter.
Second, give relaxation or convenience for the transfer of export goods or finished goods from the factory to the logistics warehouse. Third, optimize the involvement of national private logistics players to support government infrastructure projects. Fourth, provide subsidies to exporters. Fifth, provide subsidies to shipping operators so that they are willing to do repositioning (repo) of empty containers that are still stuck in several places.
By running these, the business will give benefits and profits to all, not only the shipping lines.
Read ISG Cover Story September 2021: https://theshippinggazette.com/when-will-freight-rate-rise-end/