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JAS Thriving in an Uncertian Transpacific Market

By
September 30, 2016

For the past several years, the Trans-Pacific shipping market has been one of the most unpredictable in the world.  Over the years, we have seen strikes, natural disasters, mergers, new regulations, and spikes and lulls in economies, causing a very fluid market situation that changes almost weekly.  The recent Hanjin bankruptcy is the latest in a series of unfortunate events that has caused the market to stand on its head.

During this time period, we have seen a shift in the landscape of relationships among freight forwarders and carriers through several mergers, buyouts, and alliance shifts, in order to grow market share in one of the most competitive markets in the world.

Instead of trying to buy market share, JAS has taken a customer-centric approach to develop this market and it has paid off.  With the implementation of the Cargowise One (C1) platform, (beginning with the USA and China in 2014) JAS has been able to use live data to react quickly to the ever changing market conditions and increase efficiency in the process. This is mutually beneficial to both JAS and our customers.

We are taking this a step further by investing in other business intelligence and analytic tools to help customers make better decisions to improve their respective supply chains.  The Trans-Pacific market is highly competitive and transparent in terms of shipping rates. Customers are looking to find other ways to reduce cost and compete through creating consolidations, maintaining visibility, forecasting and steering.

So far in 2016, JAS has added four weekly LCL consolidations to our current Trans-Pacific offering for a total of 17 lane pairs, with the intention of adding two more before year end.  These LCL consolidations cover not only the major markets (Los Angeles, Shanghai, Hong Kong, etc.) but also regions such as Keelung, Qingdao, Memphis, and Charleston.

Additionally, we have developed our air and FCL product offerings over the years by maintaining a focused approach through our elite carrier programs. By partnering with and maintaining long term support from market leading airlines and steamships that provide best in class service, we can be confident in our ability to provide our customers with a consistent level of service, even during drastic market fluctuations.

A perfect example of this is the current Hanjin financial crisis leading to bankruptcy. The JAS Ocean Services team saw this situation several months ago and began proactively steering cargo elsewhere.  We still have some affected freight, given the interconnected system and global alliances between carriers, but the little disruption that did occur was manageable and easily resolved. In fact, the situation at hand puts JAS in a very unique position in the market. While others scramble and focus internally to minimize the damage caused by Hanjin, JAS is focusing on our customers and has the resources and tools available to help them maximize their supply chain and navigate through the uncertainty of the Trans-Pacific market with confidence.

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About JAS Indonesia

Established in 2006 in Jakarta, JAS Indonesia has dozens of dedicated and experienced team members to support any of your regional and global transportation needs. The team focuses on air and sea (LCL & FCL), imports, exports, domestic services (air, sea, and inland freight), licensed custom house brokerage, and distribution.

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