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As 2024 unfolds, the dynamics of shipping bulky items continue to evolve, presenting both fresh challenges and lucrative opportunities for businesses worldwide—and Indonesian businesses specialising in bulky and oversized shipments are no exception.
This shift in the logistics landscape is supported by the fact that the Indonesian Freight and Logistics Market is projected to swell from US$122.2 billion in 2024 to an impressive US$178.1 billion by 2030, according to Mordor Intelligence. This growth trajectory, anticipated at a compound annual growth rate (CAGR) of 6.48%, reflects not only an expanding market but also the increasing complexity and scale of logistics operations required to manage large item shipments effectively.
With mere traditional logistics solutions no longer being sufficient for businesses to stay in the game in this day and age, an innovative approach is thus required to handle oversized items efficiently and cost-effectively.
So, how can you align with the evolving practices to ensure seamless, profitable operations and leverage the full potential of the burgeoning logistics sector?
But first, how are recent global trends reshaping the logistics of shipping large items?
According to the International Trade Administration, the Indonesian e-commerce market is expected to surge from U$52.93 billion in 2023 to an anticipated US$86.81 billion by 2028.
This growth can be correlated not only to the increasing consumer preferences for online shopping but also to the significant strides in digitizing the supply chain, enhancing both the efficiency and scope of logistics operations.
With this rapid growth, the demand for large and bulky items to be shipped is bound to experience a parallel expansion.
Further compounding this evolution is the Indonesian government’s robust investment in infrastructure development.
According to Mordor Intelligence, nearly US$19.27 million has been allocated for road infrastructure projects in key districts and the expansion of maritime and air transportation networks, setting the stage for an enhanced logistics framework.
These developments are pivotal in supporting the voluminous traffic of goods necessitated by the aforementioned burgeoning e-commerce sector and are crucial in preparing for the future needs of the new Indonesian capital city. This proactive expansion and modernisation of infrastructure not only cater to current demands but are also in alignment with the "Indonesia Emas" 2045 vision, which aims to bolster domestic shipping capabilities to optimise export-import activities.
As a result, businesses are now faced with evolving customer expectations, requiring faster, more reliable deliveries and seamless operational efficiencies.
But how do these evolving trends impact the day-to-day operations of shipping large items?
The transformation in infrastructure and digitalisation of logistics has reshaped the landscape, no doubt, but it also brings forth a set of complex challenges.
Some of these include:
Shipping large items is not just about moving a bulky package from point A to B; it involves intricate handling processes to ensure safety and efficiency. As such, the physical handling of oversized items requires specialised shipping equipment and machinery and trained personnel. And any mismanagement in relation to these factors can lead to damages that not only incur costs but also delay shipments and diminish customer trust.
The size and volume of large items mean they consume significant warehouse space. This can potentially lead to increased storage costs and require strategic placement to optimise warehouse operations.
Due to this, effective warehouse management systems become crucial to manoeuvre and store these large items without risking damage or inefficiency before the shipment overseas.
Large items often require special shipping vehicles and custom route planning to avoid logistical nightmares. This includes ensuring the transport routes can handle the size and weight and that the items are secured throughout transit.
So, what are the advanced strategies and innovations that can streamline your operations, minimise costs, and enhance overall efficiency to mitigate the aforementioned issues?
Businesses now have access to advanced sustainable packaging designed to withstand the rigours of long-distance transport while being mindful of environmental impacts. The use of reinforced, lightweight composites and recyclable materials, for example, not only protects goods during transit but also supports sustainability initiatives, enhancing a brand's image as environmentally responsible.
Technological integration into packaging systems, such as embedded tracking sensors and automated handling equipment, is also setting new standards in logistics efficiency. These technologies ensure that large items are not only securely packaged but also continuously monitored throughout their shipping journey.
The implementation of AI-driven logistics platforms further refines this process, optimising routes and handling procedures to reduce costs and improve delivery times, especially when it comes to shipping large packages.
The integration of technology in shipping processes is transforming how businesses handle large items. From automated handling systems that reduce human error to advanced tracking systems that provide real-time updates, technology ensures that large items are shipped more efficiently and securely.
And as mentioned above, the adoption of AI-driven logistics planning also allows for better route optimisation and load management, ensuring that your large shipments are as cost-effective as they are reliable.
It is common for businesses in Indonesia and beyond to question which is the least expensive way to ship large boxes and items.
At the end of the day, minimising shipping costs for large items requires strategic planning and smart logistics decisions. One effective method is consolidation, which involves combining multiple shipments into one. This approach not only optimises space in transportation containers but also significantly reduces shipping costs.
Additionally, route optimisation software can play a crucial role by identifying the most efficient paths for heavy package delivery, thereby saving time and fuel.
Beyond that, understanding and negotiating freight charges are equally important. This is because being well-informed about the various components of shipping costs allows businesses to negotiate better deals with carriers and logistics providers. This knowledge empowers companies to make cost-effective choices without compromising on service quality.
Navigating the complex world of regulatory compliance is now even more crucial for businesses shipping large items internationally.
For example, recent updates in regulations, particularly in Indonesia, have introduced more stringent standards across various product categories, including a detailed redefinition of raw food materials. These materials are now categorised more precisely as either fresh foods or plant and animal-derived ingredients used in food and beverage production. This distinction affects how goods are classified under Harmonized System (HS) and ASEAN Harmonized Tariff Nomenclature (AHTN) codes, which are crucial for customs purposes.
Businesses must stay abreast of these changes to safeguard goods during transit, maintain a seamless supply chain, ensure compliance and avoid costly legal challenges. Companies engaged in the international shipment of bulky items can even consider regular consultations with compliance experts and frequent reviews of their shipping strategies to align with the evolving regulatory landscape.
Partnering with experienced third-party logistics providers like DHL Express can significantly alleviate the challenges associated with shipping large items, too.
These partners bring expertise in handling complex logistics scenarios, including secure storage, correct machinery for proper handling, and efficient transportation of oversized shipments. Leveraging their global networks and expertise also ensures that your large items are delivered on time and in perfect condition.
With around 90% of world trade moved by ocean1, there is immense pressure on freight forwarding services. In addition, global supply chains are buckling under the impact of COVID-related lockdowns, decimated fleet resources, trade restrictions,the war in Ukraine and geopolitical tensions such as the heated situation in the Red Sea.
These frictions are being felt by businesses around the world. A DHL Express survey found that “capacity and pricing challenges with freight forwarders” is a leading concern for its customers – at a time when e-commerce volumes have never been greater.
While traditional freight forwarding may appear cheaper for shipping large items, it often excludes significant last-mile delivery costs such as trucking and handling at the destination, which can greatly increase the total expense. Moreover, these options usually have longer transit times, adding delays to the process.
Yet, amongst all this disruption, there is a more stable alternative to freight forwarding: Express shipping. DHL Express offers a transparent, fixed-price service for both light and heavy shipments that includes last-mile delivery, ensuring no unexpected charges. This, coupled with faster transit times, makes DHL Express a more cost-effective and efficient alternative for global shipping needs in today’s challenging logistics environment.
Already, millions of businesses call on the expertise of DHL Express to send light items and small consignments. But what many don't realise is that the same fixed price, time-definite international service can be used for heavier and larger shipments, too.
For items that exceed these limits, special bookings may be required.
For further details on the exact size and weight limits, pricing structures, and a guide to protecting your goods, download our packing guide.
Heavy, bulky or palletised items need to be packed in a manner suitable for Express transportation. This packing guide has all the Dos and Don'ts of palletised shipping, so your goods get to where they need to be on time and without damage or delay.