Container Shortage, High Rocketing Freight

Container shortage in the last several months has triggered high rocketing freight rate. How come and how long it will go?

At the end of 2019 or in early 2020, almost all countries in the world were shocked by the pandemic corona virus (Covid-19) outbreak, creating economic crisis. This turmoil was originated from health sector, paralyzing the economy and depressing the demand and supply. This is totally shocking the world since this is a new case causing a world economy turmoil.

And, entering the last quarter of 2020 (October-December), logistics businesses and supply chain were shocked by the fact of container shortage, causing longer time for shippers to other containers. “It needs over three days to order containers both for intra-Asia and long-haul trade from Indonesia to USA and Europe,” commends Adil Karim, Chairman of Indonesia Logistics and Forwarders’ Association ALFI/ILFA Chapter Jakarta.


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New Year Resolution: Hoping the Shipping and Logistics Business Come to Normal

Coming to the second half of last year (2020), logistics business faced at least three main issues from shipping industry: container shortage, uncertainty in shipping slot, and high rocketing freight rate. Shippers and forwarders around the world, including the ones from Indonesia, have actually complained these problems. They have shouted the ocean freight as well as some other additional fees from shipping lines in the last several months. It is so ironic, within the global economy slow down, the ocean freight has been increasing so fantastic.
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Jati Damas - Editor

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