DHL Global Forwarding rolls out its multi-modal DHL ASIACONNECT+ alternative to pure air and ocean, tapping the growing Asia road network stretching from Singapore to China.
With DHL ASIACONNECT+, shipments from various cities in Indonesia, including Bandung, Balikpapan, Semarang and Lampung, containing locally-produced goods, such as textiles, machinery and electronic goods, are consolidated in Jakarta by air or truck before being air freighted to Singapore and transported via road freight to Kuala Lumpur, Penang and Bangkok.
An extension of the offering to Vietnam and China, as well as imports to Indonesia from the various cities along DHL ASIACONNECT will follow at a later stage.
“Businesses moving goods out of Indonesia now have a strong viable alternative to traditional air and ocean freight,” says Vincent Yong, president director, DHL Global Forwarding Indonesia.
“With DHL ASIACONNECT, we have a robust scheduled road network across Indonesia’s key ASEAN trading markets. Adding Indonesia to the service portfolio gives customers a new option for multi-modal freight service.”
Yong says the new service is up to 35 per cent cheaper and reduces carbon emissions by up to 54 per cent compared to airfreight. It is also 65 per cent faster as compared to ocean freight, “providing the perfect middle-ground for customers who want more flexibility,” Yong adds.
According to DHL’s Global Connectedness Index, more than half of Indonesia’s trade flows are regional, with 58 per cent of its exports and 69 per cent of its imports going to and coming from trading partners in Asia Pacific.
While the manufacturing sector in Indonesia has been named as the engine of its projected average economic growth of 6.3 per cent until 2024, logistics costs are among the highest in Asia at 24 per cent of the country’s gross domestic product (GDP).
“There is significant value for businesses in Indonesia to strengthen their intra-Asia supply chain,” says Bruno Selmoni, VP, head of Road Freight & Multimodal ASEAN and South Asia, DHL Global Forwarding. “Half of trade from Asia are bound for destinations within Asia and Asia’s economies are forecast to be larger than the rest of the world combined by 2020,” he says.
“Indonesia is an excellent manufacturing hub for companies looking to diversify from China due to rising costs. Building a greater range of transportation options for businesses enables companies to better leverage Indonesia’s strategic location as a production base for the increasingly affluent domestic and regional markets.”