Energy shock hits road freight as logistics volumes drop up to 20%, federation says

Thailand’s road freight and logistics activity has fallen by an estimated 15-20% from a year earlier as high fuel prices and broader cost pressures weigh on the sector, the Land Transport Federation of Thailand (LTFT) said.

The Middle East war has fed through to Thailand’s domestic fuel market, pushing diesel prices sharply higher. Diesel reportedly rose to as much as 50 baht per litre in April 2026 and, while prices have since eased, they remain elevated.

Thongyu Kongkhan, president of the LTFT, said transport operators initially raised service rates on April 1, 2026, when diesel was around 40 baht per litre. However, he said that when diesel climbed to 50 baht per litre and a second adjustment was announced on April 6, 2026, most operators chose not to increase charges further, to avoid passing additional costs on to customers and the wider public.

Thongyu said operators are now absorbing not only fuel costs but a broad range of rising expenses. He cited increases of up to 25% in key items such as engine oil, lubricants, oil and air filters, and diesel filters. Tyre prices have also risen by about 20-25%, alongside higher costs for batteries, transmission oil and differential oil. Repair and maintenance equipment and spare parts have also become more expensive, he said.

At the same time, the sector is facing weaker demand. Thongyu said overall transport and logistics volumes have declined by around 15-20% compared with last year.

He said the sharpest slowdown has been in agriculture—particularly items such as rice and sugar—while durian shipments have continued in line with the season. Construction-related transport has also weakened, with lower movement of soil, stone and sand as major state projects have yet to come through.

Segments holding up better include consumer goods shipments to distribution centres and import–export cargo, which remain essential to daily life and have therefore been less affected, he said.

Thongyu said the federation would avoid raising transport prices again in the short term, to prevent further pressure on customers and household living costs.

“We’re watching what the government decides—whether it will restructure energy pricing across the system or adjust only certain parts as some capital groups want,” he said. “If the government moves too far in that direction, we may have to consider our response.”