Competitiveness of Traditional Shipping in Sea Transportation Systems Based on Transport Costs: Evidence from Indonesia

Abstract

Traditional shipping vessel is a mode of transportation that is part of Indonesia's cultural heritage and still exists today. However, traditional shipping has been deemed unable to compete with the national shipping fleet due to the high transport cost, the low safety level, long travel times, limited capacity, and limited ship repair facilities. In addition, its existence was eliminated with the advent of modern ships. This study aims to analyse the competitiveness of traditional shipping with national shipping freight based on transportation costs. The analysis used is a gap analysis of transportation costs based on variable costs and fixed costs for every traditional shipping route that overlaps with national shipping. Data were obtained by field observations. The results of the analysis show that the competitiveness of traditional shipping has decreased due to the loss of cargo of national ships. It is necessary to optimize the route by restoring the traditional shipping function as a national shipping feeder, especially in the underdeveloped, remote, outermost, and border (UROaB) areas. This study recommends the integration of the national shipping transportation network as a trunk line and traditional shipping as a feeder line. The shipping integration is expected to form a network pattern and generates increase in the demand for traditional shipping cargo.

Influencing Factors of Safety Management System Implementation on Traditional Shipping

“…The alignment of crew ability with company safety management capabilities, particularly in fostering a safety culture, is crucial. Yet practical challenges, including the cost implications for companies amid competition with conventional ships, present significant hurdles in SMS implementation [42].…”

Influencing Factors of Safety Management System Implementation on Traditional Shipping Ships

“…However, the fact is that the inclusion of all variables found in the implementation of Pelra SMS will be faced with obstacles in the field. Especially the seriousness of the company/ship owner in implementing SMS because it will have cost consequences, amid Pelra's inability to compete with conventional ships that take Pelra's cargo market share [29].…”

Implementation of Safety Management System on Traditional Shipping for Strengthening the Blue Economy

“…Although the cost burden is relatively high for people in the islands and remote areas [14], Pelra is characterized by being able to serve areas with limited port infrastructure. Pelra is expected to be able to encourage economic growth in the '3TP' area and open up investment opportunities in order to increase the value of return cargo [15], [16].…”