High shipping costs have quietly become one of the most disruptive forces affecting construction work across Bali this year. While national logistics reforms continue to progress, the reality on the island is different. Bali depends heavily on inter-island freight—especially for steel, cement, and other heavy materials—and even small adjustments in transport prices ripple through contractors’ budgets.

This case study looks at how one project in South Bali handled the impact of these rising costs and how SBU helped the contractor stabilize their material planning during a volatile period.

 

Case Study: South Bali Commercial Project Faces Escalating Freight Issues

 

In August, a mid-sized contractor in South Bali began the structural phase of a commercial building. Their project schedule was tight, and their steel requirement had to arrive in stages. Under normal conditions, this plan would run smoothly. But high shipping costs suddenly pushed their logistics budget beyond what they estimated.

The issue wasn’t just the price increase—it was the inconsistency. Freight rates fluctuated almost weekly due to port congestion, fuel adjustments, and uneven vessel availability. The contractor realized that even small price jumps could derail the project’s cash flow.

Impact on the Project

• The first shipment arrived on time, but the freight cost was 15% higher than quoted.

• The next shipment was delayed due to port backlog, creating an unexpected pause in onsite fabrication.

• Budget projections had to be revised twice within a single month.

• The investor began raising concerns about cost control and timeline stability.

At the same time, Bali was still recovering from infrastructure stress after the recent flooding—roads had temporary closures, and several inland routes experienced slower movement. Contractors on the island felt the combined pressure of unstable freight pricing and unpredictable local transport conditions. For companies used to planning materials several weeks in advance, high shipping costs suddenly created a chain of uncertainty.

 

How SBU Helped Stabilize the Contractor’s Material Planning

 

The contractor approached SBU to find a more predictable way to manage their shipments. Instead of simply selling steel, SBU shifted into a problem-solving role—something increasingly necessary for Bali’s construction environment.

Here is how SBU supported the project:

1. Predictive Scheduling Based on Vessel Patterns

SBU monitored shipping cycles from key supply points and advised the contractor when to expect price spikes or vessel gaps. This allowed the project team to place orders ahead of congested weeks and avoid the worst of the price fluctuations.

2. Consolidated Shipments to Reduce Cost Per Ton

Instead of sending multiple small loads, SBU coordinated a combined shipment. This reduced the contractor’s freight expense significantly at a time when high shipping costs were peaking.

3. Transparent Price Forecasting for Budget Owners

SBU provided weekly updates on logistics pricing trends, fuel adjustments, and port flow. This level of clarity gave the project’s investor stronger confidence in the contractor’s decisions.

4. Backup Routing Plans During Flood-Affected Weeks

When certain access roads were disrupted, SBU helped reroute deliveries through safer and more reliable alternatives—ensuring the project didn’t experience downtime.

Conclusion: Bali’s Construction Market Needs Stable Partners

 

This case shows that Bali’s construction sector isn’t just battling material availability—it’s battling unpredictability. And while high shipping costs are an external factor, contractors don’t have to face the consequences alone.

SBU’s role is not only to supply steel but to help project teams adapt to real conditions: fluctuating freight prices, island-specific logistics challenges, and infrastructure disruptions. In a market where every delay carries financial impact, a reliable partner becomes part of the project’s risk-management toolkit.