Amid attacks in Red Sea, businesses warned of shipping delays

BANGKOK: Thai entrepreneurs and businesses are being urged to deal with a temporary shortage of inventories for the next four weeks as a result of global shipping being re-routed following attacks in the Red Sea, Piset Rittapirom, chairman of Bangkok Shipowners and Agents Association, said.

He expressed his concerns at the Than Talk forum in Bangkok on Wednesday (Dec 20), where he discussed Thailand's marine logistics opportunities and challenges.

Currently, several of the world's leading shipping companies, including Maersk, have announced a new cargo route to avoid the Red Sea following reports of at least 15 cargoes being attacked.

Piset pointed out that it was not a surprising decision because security is one of the most important factors for shipping companies.

However, since freighters transport over 60% of commodity products and sources, Thai manufacturers and entrepreneurs must now devise a back-up plan to avoid inventory shortages over the next 3-4 weeks.

"At the very least, businesses will have products available during the prime time of the year," he said, pointing out that the next four weeks are close to Chinese New Year, one of the most important times for Thais to spend.

Still, he believes that the Red Sea tensions will have little impact on the overall Thai economy, other than a short-term increase in transportation costs.

Rather than being concerned about external factors, he believes the country should be concerned about a domestic issue: crowded land logistics, which play critical roles in connecting ports and businesses.

He explained that it currently takes at least a day for a truck to transfer cargo from a freighter docked at Laem Chabang, the country's main deep sea port.

Amid attacks in Red Sea, businesses warned of shipping delays

Given that docking fees are charged at around US$100,000 per day, it should only take a few hours or as less as possible.

He insisted that Thailand should prioritise improving in-land logistics right now in order to accomplish the country's goal of becoming Asean's logistics hub. - The Nation/ANN