Thai truckers apologise as staged freight hikes start April 1

Land Transport Federation has resolved to raise freight charges in stages, beginning with a 10% increase from April 1, saying operators can no longer absorb soaring fuel costs.

Thongyu Khongkhan, chairman of the Land Transport Federation of Thailand, said after a meeting with members to discuss measures for the transport sector following the fuel price increase that the federation had no choice but to adjust freight rates.

He said fuel accounts for 45–50% of total transport costs, making it the sector’s main cost burden. The increases will be introduced in steps across six to seven vehicle categories.

Thongyu said the first step would be a 10% increase in freight rates, followed by a second step of 15%, and a third step of 20–30%. He said every 1-baht rise in fuel prices increases logistics costs across the system by 3–5%.

The new freight rates will take effect across the transport system from April 1. However, he said the exact adjustments would depend on discussions between transport operators and clients under individual contracts.

He insisted the move was not intended to shift the burden onto the public, saying the step-by-step approach was designed to avoid imposing a sharp increase all at once. He added that the federation has its own cost-calculation system and would lower freight charges again if fuel prices fall.

Thongyu said he was aware that the Cabinet had approved support measures for the transport sector, but details and conditions had not yet been discussed. He said operators wanted to know whether the government’s assistance would directly address the problem.

He added that the federation would submit further proposals to the Department of Land Transport to help the sector survive. One urgent issue, he said, was that the government must not limit fuel quotas and must ensure fuel is available at every filling station, warning that long-haul vehicles cannot complete routes if stations run dry.

During the interview, Thongyu broke down in tears, insisting that operators did not want to worsen people’s hardship, but said they could not survive if they did nothing.

He said a rise in transport costs would inevitably trigger a domino effect, pushing up prices for consumer goods and hitting low-income people first. He apologised to the public, saying he felt deeply troubled but had no alternative.

“We do not want to add to the burden, but if we do nothing, we cannot survive either,” he said.

Thongyu said road transport is a vital part of the supply chain and the logistics network that sustains the entire country. He urged the government not to let the sector collapse or be taken over by foreign interests.

He also urged the government to investigate the so-called “masked beneficiaries” behind the issue, saying it was the responsibility of the government, the public and the media to uncover who was profiting. He cited one academic as saying that certain parties had made no less than 16 billion baht from the system over the past two weeks.

As for whether fuel prices could climb as high as 70 baht per litre, Thongyu said he was uncertain because much would depend on government decisions and communication.

He said the federation would continue to meet whenever the logistics and transport chain was affected, and urged the government to show courage in tackling structural problems in the energy system.

He warned that vested interests and conflicts of interest were clearly benefiting from the current system, and said failure to address them would leave the government in difficulty and trigger a crisis of public confidence, because fuel is essential to people’s daily lives.