Illusrative Image (Photo: atlaslogistics.co.uk)Bangkok (VNA) – Thai
exporters have been urged to promptly refine their export strategies given the
escalating situation in the Red Sea that is affecting shipping costs and
available vessel space while extending shipping duration.
Speaking after a meeting held on January 11 with the Ministry of Commerce, related agencies and shipping lines to assess the
impact of the attacks on international cargo ships in the Red Sea, Chairman of the Thai National Shippers’ Council Chaichan Chareonsuk said the Houthi
attacks are driving up costs to ship goods to North Africa, the Middle East and
the EU. The uncertainty is leading to delays in goods delivery to
customers.
The International Chamber of Shipping said 20% of
the world’s container ships are now avoiding the Red Sea, using the much longer
route around the southern tip of Africa instead.
According to Chaichan, Thai exports affected by
the attacks include automotive parts bound for Saudi Arabia, North Africa and
Europe, as well as car tyres, food products and electronic components headed to
Europe. Thailand‘s exports to Europe comprise 7-8% of total shipments, making
it a crucial market.
Sompol Tanadumrongsak, Managing Director of
Fortune Parts Industry Plc, said shipping costs to the Red Sea have increased
by 200-400%. For shipping routes to Jeddah, Saudi Arabia, Aqaba, Jordan,
and Sokhna, Egypt, the cost has increased from 1,500 USD to 8,500 USD per 20-foot
container. For containers bound for Turkey, the cost has risen from 2,400 USD
to 7,500 USD per container. For routes to Europe, the cost has tripled compared
with the previous year.
He said exporters and importers
need to prepare in advance for container bookings and shipping schedules,
ideally around one month ahead. If
the export goods are not time-sensitive, it is advisable to wait until the
first weeks of February during the Chinese New Year holiday because freight
costs are expected to decrease during that period, given the rush in activity
occurring in China before the holiday.
Director-General of
the International Trade Promotion Department Phusit Ratanakul Sereroengrit said the Ministry of Commerce requested shipping companies maintain their freight rates as promised. He
said the shipping companies have assured the ministry the pre-booked freight
rates will be honored without adjustment, though this is subject to the discretion
of their parent companies.
Regarding surcharge costs, the ministry asked
shipping firms to make clear announcements to enable exporters to plan and
negotiate with importers, said Phusit.
The ministry is sending a letter to shipping
companies to communicate these concerns and request clarity on the announcement
of surcharges, he said, adding that these moves can facilitate exporters and importers
in their planning of business operations./.
