Containers Scarcity Triggers Logistics Costs Up To Three Times

Box Container at Depo

Business operators Logistics called the rise in freight rates(freight)due to the scarcity container of in Indonesia are two to three times the normal price. 
Chairman of the Indonesian Logistics and Forwarders Association (ALFI) DPP Yukki Nugrahawan Hanafi said that sea transportation between countries or ocean going has many destinations and many players, so tariff increases also vary.

The increase was mainly for high cube (HC) and 40 feet containers, while 20 feet containers were still available.
"There is an increase of almost 100 percent, it is true, there are even some shipping companies more than 100 percent depending on the destination, this is happening in Asean and China because they first recovered from the pandemic," he explained to, Tuesday, December 8, 2020.
Based on ALFI's internal report , in China, the individual surcharge for this shipment ranges from US $ 300 to US $ 1,950 per container. This is above the all-time highest spot rates for ocean shipments from ports of loading in China to the east and west coasts of the US.
In December,rates freight from Asia to the west coast of the US had touched US $ 3,758 per forty-foot equivalent unit (FEU), up 3.3 percent compared with the previous month and up 140 percent year-on-year.

For deliveries in the same month, freight rates from Asia to the east coast of the US have reached $ 4,538 per FEU, up 7.9 percent compared to August and up 72.5 percent year-on-year.
In addition, explained Yukki, the scarcity occurred due to situations and weather conditions that were experiencing extreme conditions. As for the fourth quarter of 2020, there was an increase in exports plus after Covid-19, the economy expanded with the arrival of vaccines.
"Every country in Asean, especially in the region, finally tries to attract containers for their respective needs, it will be supply and demand, I appeal to ocean going, understand the situation, also understand Indonesia which is open to ocean going players," he explained. "We ask for help and relief from availability and tariffs, these rates are too high and can make you lose competitiveness."
According to him, repositioning of empty containers or repos to Indonesia is also a bit difficult, because the problem is that most containers are stuck in the US and Europe.

"Repo has been happening so far, if there is a repositioning of vacancies, the problem is, the container does not exist but runs a long haul from China to the US. The problem is not this container from China, but it is stuck in the US and Europe, especially in the US," he said.




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