Shipping Company in Indonesia: Challenges and Roles

Indonesia is a maritime country with more than ten thousand islands stretched across it. No wonder that the shipping sector has become one of the crucial aspects in the economy, especially to expand business reach.

The infrastructure is continuously built, such as container ports and docks, to support goods distribution through the sea. So, how is the development of the shipping company in Indonesia? Read this article until the end!

Shipping Sector’s Dominance in Logistics

Did you know? 80% of goods movement in the global trade sector is managed by sea logistics. This is because vessels can connect one point to another more easily.

Moreover, vessels in sea logistics are designed according to their specifications, such as tanker ships for carrying crude oil and reefer ships for perishable goods. This convenience supports the global economic cycle and goods movements.

On the other hand, the shipping activity in Indonesia also shows an increase. The BPS-Statistics Indonesia explained that in 2024, ship visits to Indonesian ports rose by 4.91% or around 992,420 units.

In the same year, the process of unloading goods for domestic shipping increased by 10.79% and the loading process by around 12.56%, while for foreign shipping, it was by 12.48% and 16.56%, respectively.

Types of Shipping Company

In general, a shipping company is divided into two categories based on the business property: Fixed and non-fixed shipping. Here is the complete information:

1. Fixed Shipping Company

Fixed shipping companies usually have regular, predetermined shipping routes, including schedules and stopover times.

This type of company can accept all types of cargo and provides a fixed rate (freight rate). The advantage of sailing with this company is that you can quickly plan your budget and schedule because the information is organized.

2. Non-Fixed Shipping Company

This company is untied by formal regulations, making its routes unpredictable. Non-fixed shipping companies can carry all types of cargo but more often carry similar types of cargo.

The Role of the Shipping Company in Indonesia

The shipping company in Indonesia has a vital role in supporting distribution and economic operations, such as:

Keeping up with large-scale distribution.
Strengthening the national economic stability.
Connecting local ports and international ports.
Optimizing logistics costs.
Providing vessels and other services for goods delivery.
Ensuring that the distribution process is on time and safe.
Organizing sea logistics operations.

Challenges Experienced by the Shipping Company in Indonesia

The shipping company in Indonesia, either public or private, is prone to challenges in the sea logistics sector. Some of the obstacles are as follows:

1. Empty Container Shortage

Containers are an important component in maritime logistics, serving to store goods safely and efficiently during shipment.

So, why might there be a shipping container shortage? Some causes include a decline in the availability of empty containers, a slowdown in global trade resulting in fewer ships operating, and changes in trade patterns.

2. Environmental Impacts

Currently, the global shipping sector must comply with IMO 2023 emissions regulations by the International Maritime Organization. They aim to prevent climate change by reducing greenhouse gas emissions.

Therefore, many shipping companies are now implementing more environmentally friendly strategies, such as using low-sulfur fuel, investing in clean energy technology, and improving engine energy efficiency.

3. Safety Threats

The shipping company in Indonesia is also vulnerable to maritime security threats, such as piracy, especially for ships sailing abroad and passing through dangerous zones. The most notorious zones for these threats are the Strait of Malacca and the Gulf of Guinea.

Piracy can endanger passengers and cargo. Not only that, but this threat can also increase operational costs and disrupt trade routes. This should be a concern for the international community and domestic governments to reduce the risk.

In addition to the three challenges above, the shipping company in Indonesia may also be affected by natural disasters, bad weather, geopolitical issues, and fuel price fluctuations.

Entrust your Chemical Logistics Needs to the Best Shipping Company in Indonesia

To ensure that the transportation process runs as planned, you must select the right shipping company. If your company needs shipping services and sea logistics solutions for chemicals and LPGs, Chandra Asri Group is the answer!

As #YourGrowthPartner, Chandra Asri Group, through Chandra Shipping International, manages more than 10 chemical and LPG vessels with a capacity of up to 106,650 DWT. This number may increase with the acquisition of more vessels in the future.

So, do not hesitate to entrust your sea logistics needs to us. Contact us now!