Commerce Ministry panel to examine freight rates

Late last year, the Thai National Shippers Council, the Thai Chamber of Commerce and other trade associations filed complaints to the ministry about rising shipping costs. The shipping companies had announced that they would increase fees for dry containers by 62-74 per cent, depending on container size.

The ministry instructed shipping firms to delay the cost increases for about four months from early January as the committee investigates. However, the costs have already gone up slightly, by Bt20-Bt200 per container.

Santichai Santawanpas, deputy director-general of the Internal Trade Department, said the government would try to seek a solution acceptable to both shippers and shipping companies to ensure fair practice for all involved.

"After setting up the investigative panel, it should take about two months to finalise the case. The panel will consider the cost of shipping, and whether to allow an increase in THC as the shipping firms want," he said.

Many Thai shippers are worried that such dramatic increases would put a huge burden on them.

Under the plan to increase THC, the cost of maritime shipment will increase from Bt2,600 per twenty-foot-equivalent unit to Bt4,400, and from Bt3,900 per forty-foot-equivalent unit to Bt6,800, soaring by almost 69 and 75 per cent respectively. For refrigerated containers, the charges will increase by 62-64 per cent.

At next month’s meeting, the Trade Competition Committee will also continue to consider other trade-related cases for which it previously set up a working panel to investigate. These are cases related to alleged price dumping by a large egg producer; ice producers allegedly colluding to set retail prices; unfair practices by a rubber trader; and a case of unfair trade practice in agricultural machinery.

Meanwhile, the Internal Trade Department has found that the price of foods during the Chinese New Year festival have been mostly unchanged from last year thanks to the high supply of agricultural products and the slow economic recovery.

After surveying Big C Supercenters and other markets, it found the prices of pork, chicken, duck and eggs had been maintained, while the prices of some fruits, mainly bananas and oranges, had increased by about 5-10 per cent because of high demand during the Chinese New Year celebration.

Warunee Kitjaroenpoonsin, director of corporate affairs at Big C Supercenter, said sales of foods had increased by 15-20 per cent during Chinese New Year compared with normal periods. She added that many consumers had switched to shopping at supermarkets instead of fresh markets because they are more convenient and offer competitive prices.