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As shipping companies give priority to satisfying the capacity of China and Vietnam, many importers who import from Thailand say that the shortage of containers in Thailand is plagued the supply chain when they importing from Thailand. Shipping exports from Thailand has become difficult. how to find a reliable Thailand shipping company is become more pressing.
The Thailand board of trade estimates that the country will have a shortage of 1.52 million containers in 2020, which prompted the Thai government to step in and promise to subsidize the cost of importing empty containers into Thailand for a period of up to 6 months. It is used to supplement the shortage of containers shipped from Thailand, and also to curb the increase in shipping charges from Thailand.
Ghanyapad Tantipipatpong, Chairman of the National Shippers Council of Thailand (TNSC), said that although the impact of container shortages is reflected globally, Thailand is also facing fierce competition from Asian exporters.
Tantipipatpong said: “Thailand has allocated fewer containers and container cargo spaces because shipping companies give priority to China and Vietnam because it seems that importers from China and Vietnam have a greater competitive advantage and are willing to accept higher Ocean Freight cost.”
“Although we have to pay extremely high freight and surcharges, this directly affects the available spaces and containers in Thailand.”
In fact, TNSC stated that in November last year, the Thai trans-Pacific freight rate for shipments from Thailand has increased from 1,400 US dollars/FEU in the same period last year to 4,200 US dollars.
Tantipipatpong added: “At the same time, imported goods shipped to Thailand will also be affected by peak season and container imbalance surcharges, including a US$500 surcharge from China.”Now the shipping cost from China to Thailand is over 1000USD/40HQ ，before is only around 200USD/40HQ
“The high demand for trans-Pacific cargo has had a domino effect on other industries.” He said that Thai shippers are also struggling with ship delays, container rollover, which makes business planning more difficult.
“Thailand suppliers cannot accurately predict the sales volume they promised to customers. Some exporters have to breach the contract, while others suffer losses due to losses or fines paid for fulfilling orders.” All of these make the risk of importing from Thailand change. Many Thailand suppliers and importers buy from Thailand all suffer the same problems.
TNSC made many recommendations to the authorities to help reduce logistics costs and provide more containers and available spaces. For example, to reduce the loading and unloading fees set by the Thai Port Authority to attract shipping companies to re-ship more empty containers to Thailand, the Port Authority should also increase the number of ultra-large container ships permitted to dock at Laem Chabang Port.
Tantipipatpong added: “In the long run, we hope to strengthen Thailand’s container repair industry to attract more containers to and from Thailand, which means that exporters can get more containers in good condition for export. We also plan to cooperate with the industry Department to negotiate service contracts with shipping companies.”
He said another option is to use the newly established Regional Comprehensive Economic Partnership (RCEP) to bypass the seaport altogether.
“Under the RCEP framework, we can negotiate customs procedures to facilitate the transportation of containers to China by land, including the transportation of goods to the final destination in China and the transportation of containers to Europe by rail.”
According to estimates, Thailand’s exports will fall by 4-7% in 2020, but TNSC hopes to increase by 3-5% this year.
BANGKOK is located on both banks of the lower Chao Phraya River in southwestern Thailand, about 16 n miles away from the mouth of the river, and on the north side of Bangkok Bay. It is the largest port in Thailand and one of the 20 largest container ports in the world.
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