The customer is an India-based freight forwarding company and one of the leading consolidation forwarders in Indonesia. Apart from it, they also make regular FCL shipments. This time, they had to import of Out-Of-Gauge (OOG) containers from India to Balikpapan.
The challenge
Indonesia is divided amongst an archipelago of around 17,500 islands, and logistics is still a key pain point for doing business in the country. According to global research firm Report Linker, logistics cost varies between 25%-30% of Indonesia’s GDP. In developed economies, the cost is below 5% of the GDP. Needed a partner who could safely move the seven containers of OOG cargo into the port city
One of the largest financial sectors north of Indonesia, Balikpapan is located in Kalimantan Island. Apart from the remote distance and steep transportation costs, the customer’s logistics plans were hampered by a lack of infrastructure to move the oversized cargo. Their options were to either charter a breakbulk vessel or discharge the cargo at Surabaya, a nearby port, before shifting to Balikpapan.
Both options had too many touchpoints and were strapped with high costs. They needed a partner who could safely move the seven containers of OOG cargo into the port city and keep a cap on the rising expenses of the entire project. Maersk went a step further to deliver for them.
The Maersk solution
Here Maersk’s position as a global integrator of container logistics proved to be a winning combination for the customer. The teams offered a solution with a mix of ocean and land services, all from a single point of contact.
At the time, Maersk had direct acceptance into Balikpapan. The local experts could fit the customer’s cargo into a breakbulk vessel and deliver it to the port. Maersk offered a land solution for the next leg of the journey through a fleet of trucks to deliver directly to Batu Licin – a further 400 kilometres away. The inland journey was overseen by local Maersk professionals, who knew the area’s ins and outs.
The result
The customer chose to extend the collaboration and nominated Maersk to handle their next project Despite the intense competition for business in the region, this case showed the heights of success freight forwarders and logistics providers can reach when they collaborate on projects.
As a direct result of Maersk’s strong connections and inland network at Balikpapan and Batu Licin, the containers arrived safely and on-time at their destination.
The teams were able to provide visibility and expertly handle the special cargo and provide cost efficiencies. Expenses were nearly 50% lower when compared with the customer’s original plan. Satisfied with the work, the customer chose to extend the collaboration and nominated Maersk to handle their next project.