He said that the discourse on government intervention to overcome the scarcity of containers was less effective when using incentives because it required enormous costs, while naturally the increase in shipping prices would normalize when world trade had recovered, like a market mechanism.
“The scarcity of containers and ship space provides a windfall [windfall] for world shipping operators due to the law of supply and demand, for example, freight from Jakarta to Europe is currently rising to 500 percent,” he explained.
On the other hand, the high cost of transportation for Indonesian international shipping is influenced by the behavior of national industry and trade. This is because there is a mismatch between exports and imports in Indonesia.
“Imports are heavy cargo using 20-foot containers, while for exports generally light commodities such as footwear, electronics and furniture use 40-foot containers,” he said.
As a result, every time there is import activity, shipping has to reposition a 20-foot container and for export purposes, an empty 40-foot container must be imported, all of which are calculated in the cost of transport.