News

The global container freight market is experiencing increased volatility due to persistent geopolitical disruptions, particularly in the Middle East. The Asia-to-Europe route, which heavily relies on the Suez Canal, has seen major disturbances following attacks on vessels near Yemen, prompting shipping companies to seek longer, costlier detours. These changes, according to a UNCTAD report, have contributed to a 3.7% rise in global trade in 2024, reaching a record $33 trillion, while container trade is projected to grow at 3.6% annually through 2028. Spot market freight rates are declining and beginning to align with longer-term contract prices, challenging traditional pricing models. Major freight players are now reevaluating their strategies, with some considering increased reliance on spot indices like the Baltic Index (FBX) for greater pricing flexibility. This shift is also sparking interest in financial instruments such as container freight futures and options, especially through platforms like CME Group, as businesses seek ways to hedge risks in unstable conditions. The report highlights that 23 million TEUs (Twenty-Foot Equivalent Units) were traded between Asia and Europe alone in 2024, underscoring the importance of disrupted routes like the Suez. As freight volatility persists, companies are not only dealing with longer delivery times and higher costs, but are also adjusting their supply chain strategies, including shifting destinations and revising import-export plans to maintain resilience. Despite current instability, the long-term outlook for container shipping remains optimistic. A 5% year-over-year increase in East-West trade volumes was recorded in 2024, totaling 59.36 million TEUs. This growth reflects sustained global demand, though it also places pressure on infrastructure and logistics strategies amid mounting unpredictability.   Source : https://www.cmegroup.com/openmarkets/energy/2025/Container-Freight-Volatility-Rises-Amid-Trade-Disruptions0.html

Indonesia and France are strengthening their bilateral cooperation in the transportation sector, focusing on land, maritime, and aviation development. The partnership will include infrastructure development for urban transportation, notably Bus Rapid Transit (BRT) projects in Medan and Bandung. In aviation, discussions centered on extending a Technical Cooperation Agreement and upgrading navigation systems over Indonesia’s western airspace. This meeting follows broader France–Indonesia efforts to promote sustainable development and deepen economic ties, with President Emmanuel Macron scheduled to visit Indonesia in May.   Source : https://en.tempo.co/read/1995027/indonesia-france-to-expand-cooperation-in-land-maritime-and-air-transport

Indonesia is weighing the option of loosening its domestic content requirements (TKDN) in the information and communication technology (ICT) sector as part of its diplomatic negotiations with the United States, following a new 32 percent import tariff imposed by President Donald Trump on Indonesian products. Coordinating Minister for the Economy, Airlangga Hartarto, revealed that easing TKDN for U.S.-linked investments, particularly in Batam, could be offered to mitigate trade tensions. He emphasized that this proposal includes  flexibility  in  Free  Trade  Zones,  where  tech  giants  like  Oracle  and  Microsoft  plan  to  invest  in  data centers.   Source : https://en.tempo.co/read/1994950/indonesia-mulls-easing-domestic-certification-policy-amid-us-negotiations

Canada is responding fiercely to U.S. President Donald Trump’s proposed 25% tariffs and controversial  remarks  suggesting  the  country  should  become  an  American  state.  Many  Canadians  feel betrayed, leading to a surge in economic nationalism, as consumers boycott U.S. goods and businesses  promote  locally  made  products.  A  survey  found  that  over  60%  of  Canadians  are  buying  fewer American items, while more than 70% are increasing domestic purchases. The  Liquor  Control  Board  of  Ontario  has  banned  U.S.  alcohol,  cutting  off  over  $1  billion  in  sales  for American  liquor  brands.  Ontario  also  imposed  a  temporary  25%  surcharge  on  electricity  exports  to U.S. states, though this was paused after negotiations resumed. Trump's now-withdrawn plan to raise tariffs on Canadian steel and aluminum to 50% further heightened tensions, drawing backlash from the United Steelworkers union, which represents workers in both countries. Travel between Canada and the U.S. is also being affected, with vehicle trips to America dropping 23% and airlines adjusting routes to reduce flights to popular U.S. destinations. Canadian tourists have canceled some trips, citing economic and political concerns. Tourism officials in U.S. destinations that rely on Canadian visitors are struggling to reassure travelers that they remain welcome despite the political climate.    Source : https://www.cnbc.com/2025/03/16/see-you-in-four-years-canada-flexes-economic-muscle-as-tariff-negotiations-continue.html?

Malaysian investor Citadel Group has confirmed plans to commence a mixed-use development in Indonesia’s new capital, Ibu Kota Nusantara (IKN), by the end of 2025.  With Citadel’s involvement, the number of private investors in IKN has now reached 42. The relocation of civil servants to IKN is set to be completed by June 2025, supporting the city’s transformation into a modern, sustainable capital.   Source : https://ikn.kompas.com/read/2025/03/19/120845287/citadel-bangun-mixed-use-di-ikn-akhir-2025-benamkan-triliunan-rupiah

Indonesia recorded a trade surplus of $3.12 billion, surpassing analysts' expectations of $2.45 billion. The strong performance followed by the previous upwardly revised surplus of $3.49 billion, indicating a solid start to the year despite global trade uncertainties. Exports surged 14.05% to $21.98 billion. Imports increased by 2.3% to $18.86 billion, mainly due to a 24% rise in vehicle and spare parts purchases. Analysts expect imports to rise further as the government continues its pro-growth policies, despite concerns over potential economic risks.   Source : https://www.thestar.com.my/aseanplus/aseanplus-news/2025/03/17/indonesia-posts-wider-than-expected-trade-surplus-on-palm-oil-exports-surge

The MSC Irina, the world's largest container ship, has officially entered service, boasting an unprecedented capacity of 24,346 TEU. Weighing over 200,000 gross tonnes—the equivalent of 250,000 cars—the vessel stretches 399.9 meters in length, about the size of three football pitches. Commissioned by a Chinese bank and built by China's Jiangsu Yangzijiang Shipbuilding Group, MSC Irina  is  the  first  of  six  ships  in  a  $600  million  project.  The  ship  operates  under  the  Liberian  flag  and features an innovative design that reduces carbon emissions by 3-4% compared to similar-sized vessels. The vessel’s maiden voyage includes stops in Qingdao, Busan, Singapore, and key European ports like Valencia, Spain, via the Suez Canal. It will return through Saudi Arabia and the UAE, showcasing its role in global trade. Despite its massive size, MSC Irina is designed for efficiency, stacking containers 26 deep while maintaining environmental sustainability. With a fleet of 730 vessels and an annual transport capacity of 23 million TEU, MSC (Mediterranean Shipping  Company)  continues  to  dominate  global  shipping.  The  MSC  Irina  surpasses  all  previous record-holding container ships, marking a new era in maritime logistics.   Source : https://www.express.co.uk/news/world/2021153/worlds-largest-container-ship

Indonesia and Vietnam have agreed to upgrade their bilateral relationship to a comprehensive strategic partnership, as announced during a meeting between Vietnamese Communist Party General Secretary To Lam and Indonesian President Prabowo Subianto in Jakarta on Monday (Mar 10th). The discussions focused on enhancing cooperation in fisheries, the digital and green economies, high-tech industries, and defense.