Macro disturbances occur to the cluster of entities that own cargo directly as well as to logistics operators (forwarders) for both long-term contracts and trade contracts and short-term sea transportation (spot) of small entrepreneurs.
The impact of the scarcity of containers and the high cost of ocean freight is undeniably affecting the small and medium-sized business industry in Indonesia. The scarcity of containers and the high cost of ocean freight also have an impact on the export of fishery products.
Many national companies are repositioning containers for Indonesian exports so that ocean freight costs have fallen, although not significantly. It could be because people's purchasing power is still low so they export more than import. The shipping company suffers a loss, if the return cargo is empty. 40 FEU ocean freight from Indonesia to Europe was $7.000 down to $6.500 (from before the pandemic $1.500), then ocean freight full container reached $13.000 for the East Cost of US, which was previously around $3,000.
Amidst the burning issue in freight, there are some of other countries' action regarding high freight prices at the beginning of the scarcity period, as such.
In United States of America, The US House of Transportation and Infrastructure Committee is drafting a bipartisan law that requires operators to accept all US export container orders. The US President ordered the Federal Maritime Commission to investigate the increase in container and freight costs, including other charges imposed (demurrage and detention) and related to anti-competition.
In South Korea, the government is instructing overseas shipping with South Korean flags to cooperate with MLO to rationalize freight prices and provide containers for national export purposes.
China imports empty containers at government expense. They encourage manufacturers to increase container production and tighten the supervision of shipping companies to prevent excessive price increases. They even also advancing the start of the Lunar New Year holiday to January 15, so that exporters are asked to adjust their forecasting of goods shipments.
Taiwan, to admonish domestic and international shipping operators not to take advantage of the container scarcity situation due to the Covid-19 Pandemic for corporate purposes in the form of increasing freight costs.
While India requires MLO operators to provide 1000,000 containers per week and draft Merchant Shippin Bill 2020 that all carriage must be stated openly in the Bill of Lading (B/L), and no fees other than those listed are allowed.
Vietnamese requests the shipping line in cooperation with the container depot operator to consolidate container needs throughout the country and ensure the fulfilment of empty containers originating from import activities.
And in Thailand, pushing ships with dimensions above 15,000 TEUs to Laem Chabang and exploring dry bulk potential.
