1. Startups

Andalin Strengthens Export-Import Service Ecosystem, Launches "Andalin GET"

To overcome the scarcity of sea shipments of the Full Container Load (FCL) type by switching to the Less than Container Load (LCL) type

After introducing the Andalin Go application in the second half of this year, startups digital freight forwardersAndalin re-introduced Andalin GET products to strengthen its position in Indonesia's import-export industry. With this product, exporters can overcome the scarcity of sea shipments of the Full Container Load (FCL) type by switching to the Less than Container Load (LCL) type.

In his official statement, Andalin changed shipments from previously FCL to several small-scale containers (LCL) so that the delivery of goods was not hampered. Andalin guarantees the availability of LCL space and the certainty of the departure schedule chosen by the client.

Andalin's Head of Commercial Arlia Irishtiana revealed, Andalin GET is here to overcome the container cargo scarcity phenomenon that has occurred since 2020, especially on the Indonesia-United States (US) sea route.

Based on data Indonesian Forwarder Logistics Association (ALFI), the imbalance in the number of ships and container loads has occurred since 2020. Given that many ports were closed due to the Covid-19 pandemic, the movement of volume of goods began to sluggish so that many ships were forced to change schedules and resulted in fewer containers being ready to be shipped. This phenomenon triggers a surge in sea shipping costs from Indonesia to the US by up to 300%.

According to Arlia, if this situation continues, it will create a bad impact on economic conditions in Indonesia. Because, exports to the US accounted for 12% of Indonesia's total non-oil and gas exports in 2020 worth IDR 26,5 trillion. The US is the second largest export destination for Indonesia.

"Towards the end of the year, there will definitely be an increase in shipments due to seasonal patterns of activity and public consumption. This trend triggers a scarcity of shipping space and is estimated to continue until the Lunar New Year in the first quarter of 2022. Therefore, international shipping players must adapt from those who usually use shipping. FCL to explore types of LCL so that sales to the US market continue," he explained.

Furthermore, Andalin GET targets various business players from various industry verticals. However, at this time Andalin GET only serves export shipments to the US considering this route requires the fastest innovation to overcome the scarcity of containers. Meanwhile, business people can monitor the status of delivery of goods in real-time through the Andalin platform.

Contacted separately, Andalin CEO Rifki Pratomo said, for the initial stage, the new Andalin GET service can be accessed by contacting the Andalin expert team. In the future, Andalin GET will be integrated into the Andalin platform to facilitate access to services.

Business growth

To DailySocial, Rifki revealed that this year Andalin succeeded in executing a number of important innovations to digitize the import-export process in Indonesia. For example, the launch of the Andalin Go application which aims to reduce the complexity of the logistics bureaucratic process and encourage efficiency in the delivery of export-import goods.

Then, Andalin is also partnered with the platform lendinginvestree as the first startup partner to introduce paylater products for MSMEs. DailySocial had time to ask the progress of cooperation paylater this, but Rifki was reluctant to comment. 

"The pandemic is not over and there are still shipping challenges that occur in the world during the pandemic. Regardless, Andalin continues to grow rapidly in 2021 by recording business growth of more than 400% compared to the previous year. We will continue to innovate to simplify shipping for international trade by utilizing technology and innovation of new solutions in 2022," he said.

He revealed, the second wave of the pandemic actually made Andalin able to adapt well, both in terms of business and ways of working. "Exporting businesses must adapt given the many congestions and scarcity of cargo due to port closures, so new innovations are needed, such as Andalin GET and Andalin Go," he added.

Next year Andalin GET will focus on continuing the development trend in 2021 by increasing the number of clients and volume of goods. His party is also developing a platform to encourage export activities with the concept of one-stop international trade solution.

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