Thai Exporters Confront $600 Million Surge in Expenses Amid Escalating Port Congestion

According to a recent report from the Thai National Shippers’ Council, exporters and importers in Thailand are facing an alarming increase of over $600 million in logistics expenses annually due to worsening congestion at laem Chabang Port. This situation is largely fueled by a spike in shipments as businesses rush to prepare for potential hefty tariffs from the U.S.

The council has made a strong appeal to the government, urging immediate action to alleviate the growing traffic jams at this crucial deep-sea port located about 80 miles from Bangkok. This plea follows an proclamation by the Land Transport Federation of Thailand regarding upcoming increases in trucking fees starting July, as noted on June 12.

In fact,there’s been a notable surge in shipment orders—thanks largely to a temporary halt on high tariffs proposed by former President Trump back in April—which resulted in thai exports climbing by 14% during the first quarter of this year. This boost has been essential for an economy grappling with dwindling tourist numbers and sluggish local spending.

Though, truck drivers are now experiencing wait times that can stretch up to 20 hours per trip during busy periods—a notable jump from previous waits of around eight to ten hours. The shipper group estimates that once new trucking rates kick in, logistics costs could soar by approximately 20 billion baht (around $616.5 million) each year.

The council emphasized that such economic repercussions are too severe for authorities to overlook or leave solely up to private entities.They warned that not only would these challenges undermine Thailand’s export competitiveness but also lead consumers within Thailand facing higher prices for goods and services due to increased logistics costs.

The congestion issue arises from various factors: fewer vessels available, overcapacity issues, insufficient rail and road infrastructure, lengthy regulatory processes, and poor management of truck queues. The TNSC is advocating for the establishment of a dedicated task force aimed at tackling these problems through policy changes while also pushing for necessary infrastructure upgrades at Laem Chabang Port.