Thai Exporters Warn: Border Crisis Threatens Competitiveness as Shipping Costs Surge

 

National Shippers’ Council urges Bangkok to adopt proactive diplomacy and cost relief measures; SMEs hit hard by forced switch from land to sea routes.

 

The Thai National Shippers' Council (TNSC) has sounded the alarm, expressing profound concern that escalating border tensions are directly undermining business confidence and the competitiveness of the nation's export sector.

 

Thanakorn Kasetsuwan, chairman of the TNSC, revealed that the growing instability on the Thai-Cambodian border is forcing numerous exporters to abandon established land routes. 

 

To mitigate security risks and avoid delays, many firms are now compelled to switch to far costlier sea freight or undertake significantly longer inland haulage journeys.

 

"These diversions have led to a substantial increase in logistics costs and extended transit times, severely hurting the competitiveness of Thai exporters," Thanakorn stated. 

 

He noted that the impact is particularly acute for Small and Medium-sized Enterprises (SMEs) due to their sensitivity to rising costs and constrained liquidity.

 

 

 

Economic and Festive Impact

The TNSC is closely monitoring the situation, especially the risk of further confrontation, which could exacerbate the nation's slow and fragile economic recovery.

 

The Council warns that if the current tension persists, it will not only hurt trade routes and logistics but also dampen investor and consumer confidence. 

 

This is a critical concern, as the year-end period is traditionally a season for economic activity to pick up.

 

 

 

Furthermore, continued border clashes during the New Year could undermine public safety and restrict both domestic and international travel. 

 

This would likely cause consumer purchasing power during the festive season to be "weaker than it should be," dragging down the New Year economic atmosphere.

 

The TNSC acknowledges, however, that the negative effects could be reduced and geographically limited if the government exercises strong control, uses proactive diplomacy, and maintains clear communication.

 

 

 

 

TNSC’s Four-Point Plan for Government

The TNSC is calling for the government to urgently implement four key measures to mitigate the economic damage:

 

Prioritise Diplomacy and Peace: Use peaceful mechanisms and diplomacy as the primary tool to de-escalate the crisis, which is essential for protecting Thailand's international image and maintaining trust with foreign trade partners.
 

 

Ensure Logistics Stability: Secure border areas and implement measures to stabilise logistics routes. This includes preparing alternative checkpoints and backup transportation networks to prevent the export system from grinding to a halt.

 

Maintain Clear Communication: Continuously provide transparent information to ease public, tourist, and business sector anxieties, especially during the New Year holidays, when confidence is vital for economic activity.

 

Implement Cost Relief: Immediately consider measures to alleviate logistics costs, such as reductions in port charges, expedited customs procedures, and temporary tax benefits for exporters affected by unavoidable route changes.