The Crucial Role of Shipping in Global Trade and Indonesia

Take a look around you. Smartphones, laptops, raw materials in factories, even the goods in your nearest minimarket. Have you ever wondered how all these items arrive here? The answer often lies in the giant steel vessels that sail across the oceans. Yes, even in today’s era of drones and hyperloop technology, the fact remains that nearly 80% of global trade volume is still carried by ships. Impressive, isn’t it?

So, what does this global fact mean for us here in Indonesia, the world’s largest archipelago located between two oceans? Let’s dive deeper into why sea freight remains the backbone of global logistics, the challenges it faces, and the golden opportunities that await our country.

Why Sea Freight Still Dominates Global Logistics

Despite the rise of other transportation modes, why does shipping remain dominant? The secret lies in several fundamental factors.

First, cost efficiency. Imagine transporting a full container of goods from Shanghai to Jakarta. The per-unit cost of shipping by sea is far cheaper compared to air or land transport. This is called economies of scale—moving goods in massive volumes at once significantly reduces logistics costs.

Second, massive capacity. Modern container ships, such as the Triple-E class, can carry more than 24,000 TEUs (Twenty-foot Equivalent Units). That’s equivalent to a line of trucks stretching from Jakarta to Bandung! No cargo plane in the world can compete with this scale.

Third, truly global reach. Almost every country in the world has seaports, making ships the only transportation mode capable of directly connecting trade routes across every corner of the globe.

The Challenges: Turbulence in the Shipping Industry

Of course, international maritime trade doesn’t always sail smoothly. Several major challenges persist in 2025.

Issues such as container shortages—where empty containers are not available in the right locations—often disrupt schedules and drive up costs. Fuel price fluctuations also directly affect freight rates.

Moreover, global pressure to reduce carbon emissions is forcing the industry to adapt. Stricter emission regulations are pushing shipping companies to invest in greener technology, which requires significant capital. Meanwhile, congestion at major global ports continues to disrupt the smooth flow of supply chains.

Indonesia in the Global Logistics Map: Opportunities and Challenges

Amid these global logistics dynamics, Indonesia holds a uniquely strategic position. As an archipelagic nation with over 17,000 islands and located along key international shipping lanes such as the Malacca Strait and Sunda Strait, we are essentially a “gateway” for global maritime trade.

This represents tremendous logistics potential. However, potential alone is not enough. To maximize it, we need modern port infrastructure, deeper harbors to accommodate large vessels, and efficient customs systems. Developments such as the Patimban Port and the expansion of Tanjung Priok Port are steps in the right direction to improve freight forwarding efficiency and streamline cargo flow.

The Way Forward: Strengthening Indonesia’s Maritime Logistics

So, how can we seize this moment? The key lies in collaboration. While the government continues to modernize infrastructure, businesses must also be strategic in choosing reliable logistics partners.

This is where the role of trusted freight forwarding and logistics companies such as Agung Logistics becomes critical. We understand the complex dynamics of international trade. With our global network and in-depth knowledge of Indonesian customs regulations, we help businesses navigate these challenges seamlessly.

From arranging optimal sea freight solutions, handling export-import documentation, to providing storage solutions in strategically located warehouses, our team ensures your goods move efficiently. With streamlined logistics, Indonesian products will become more competitive in global markets, while imports can arrive faster and at lower costs.

The fact that 80% of global trade still depends on shipping is not an outdated story—it is proof of this mode’s resilience and efficiency. For Indonesia, it is a golden opportunity to truly become a maritime hub of the world.