Logistics is a critical part of any country’s economy and it is no exception in ASEAN countries. Unfortunately, the ten countries that make up the political and economical union all face challenges within the realm of logistics, especially amidst the COVID-19 pandemic. These include conflict of interests, inadequate infrastructure, as well as a lack of understanding regarding standard operating procedures (SOP), according to a report from the OECD. So how do you solve these logistics issues? Let’s take a closer look at the problems and their possible solutions.
1. Conflict of Interest
One major challenge that ASEAN countries face in the realm of logistics is the port authorities’ conflict of interest. Due to the overlap in regulatory and operational functions of port authorities, international trade and import/exports become tenaciously difficult. With both the exporter and importer regularly competing with each other for bigger slices of the pie, efficient and smooth logistics solutions become a tumultuous task.
Solution: For businesses faced with such logistics problems, the solution comes in the form of independent regulations. This could take on the form of an objective third-party who steps in to regulate disputes and arbitrates for fair and equal treatment on both ends of importer and exporter. The key here is being impartial to avoid any international disputes, while still maintaining transparency.
2. Inadequate Infrastructure
The second logistics issue plaguing ASEAN countries is infrastructural problems. Out of gauge and bulk cargo shipping are prevalent problems in many parts of the world, particularly in ports that do not possess sufficient space or technology needed to load and unload containers.
Solution: Break bulk cargo is the only practical form of goods transportation for smaller vessels that lack the size or load capacity to support multiple containers. An example of this would be Roll-on Roll-off (RoRo) methods, which are the safest, fastest, and most cost-efficient way to transport breakbulk cargo. Such practices are already preferred in project cargo or to facilitate the transport of OOG cargo in mining sites located in remote islands such as Indonesia or ports in Malaysia. Thankfully, there exists vessel chartering companies in Singapore such as Halcon Primo Logistics with expertise in breakbulk cargo, especially in supply chains with heavy machineries such as mining as well as oil and gas.
3. Delivery Delays
The final logistics problem that ASEAN countries, and arguably every country in the world, face is delivery delays. Due to factors such as miscommunication or fragmented communication stemming from cultural and language barriers, delays in final-mile fulfilment are commonplace. Combined with international shipping regulations and the myriad of legal prose companies have to sift through to ensure compliance and regulatory standing, one can see how delivery delays become inevitable. ASEAN countries are no different, with each country having its own particular set of tariff and trade policies, import/export poses a significant challenge to companies lacking the required logistics service experience.
Solution: To circumvent this, a one-stop logistics service provider that has the necessary know-how is crucial to help avoid delivery delays.
Working Together to Overcome Logistics Problems
Logistics challenges continue to evolve, and solutions are seemingly changing to suit the current needs of the global marketplace. By working together, ASEAN countries can overcome their logistics challenges and build a stronger future for the region.
Similarly at Halcon Primo Logistics, we work together with your company to provide customised solutions and help optimise your project logistics experience in Singapore and beyond. Contact us today to find out more about our services!
