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Thai exporters and importers risk more than $600 million in added annual logistics costs as congestion worsens at the country’s main deep-sea port, driven by a surge in shipments ahead of potential steep U.S. tariffs.
The Thai National Shippers’ Council has urged the government to address the growing congestion at Laem Chabang Port in Chonburi province, 80 miles from the capital, Bangkok. The call comes after the Land Transport Federation of Thailand announced plans to raise trucking fees starting in July, according to a statement on June 12 from the council.
A sharp increase in shipment orders led to a 14% rise in Thai exports during the first four months of the year. The export growth has provided a lift to an economy weakened by declining tourist arrivals and sluggish domestic consumption.
Truck waiting times at the port have risen to as much as 20 hours per trip during peak periods, up from about eight to 10 hours previously. The shipper group estimates logistics costs will rise by as much as 20 billion baht (about $616.5 million) annually once the higher trucking rates take effect.
Read more in an article from Supply Chain Brain.
