A perfect partnership: Joining hands with a customer to go all the way

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.
One of the largest financial sectors north of Indonesia, Balikpapan is located in Kalimantan island. Apart from the remote distance and steep transportation costs, our 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.

The result

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.

Our 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.