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Businesses fret over rising shipping costs amid US-China trade war
If China exports fewer goods to the US, he said, there will be fewer containers in the trade path between the two countries, which would reduce the availability of containers for shipments to other destinations.
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A worker supervises loading and unloading services on March 28, 2023 at the Jakarta International Container Terminal in Tanjung Priok, North Jakarta. According to a recent Statistics Indonesia (BPS) report, Indonesian exports grew 7.13 percent year-on-year in September 2024 to US$23.56 billion, the highest figure since December 2022. (AFP/Adek Berry )
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usinesses have raised concerns over the potential impact of the United States-China trade war on global shipping costs, following the imposition of steep tariffs by both countries.
Adhi Lukman, who chairs the Indonesian Food and Beverage Producers Association (Gapmmi), said that rising logistic costs may result from container imbalances.
If China exports fewer goods to the US, he said, there would be fewer containers in the trade path between the two countries, which would reduce the availability of containers for shipments to other destinations.
Adhi, who also heads the Indonesian Employers Association’s (Apindo) manufacturing division, drew a parallel with the situation during the COVID-19 pandemic, when global shipping routes were thrown into disarray. Some countries experienced a flood of idle containers, while others faced severe shortages.
“This imbalance caused shipping rates to North and Latin America to soar by three to four times. That’s a scenario we hope to avoid,” Adhi said on Monday, as quoted by Bisnis.com.
Adhi also warned that if Chinese manufacturers were unable to ship goods to the US due to higher tariffs, they may redirect their exports to other markets, including Indonesia. This could lead to a surge of imported goods and put pressure on domestic producers.
He therefore urged all stakeholders to monitor the situation closely to safeguard the competitiveness of locally made products.
