The Commerce Ministry is preparing short-term and long-term measures to address the impact of Houthi attacks on crucial shipping routes in the Red Sea.
However, the ministry said the recent attacks in the Red Sea have yet to adversely affect Thailand's overall export activities.
Speaking after an urgent joint meeting held on Thursday with the Thailand National Shippers' Council (TNSC), overseas trade promotion offices and related agencies to assess the impact of the recent attacks on international cargo ships in the Red Sea, Keerati Rushchano, permanent secretary of the Commerce Ministry, said a preliminary assessment suggested these events are expected to be short-term and are unlikely to persist.
"A significant impact on Thailand's overall exports is unlikely this year, and the ministry is gearing up with contingency measures to manage a prolonged situation," he said. "If these events persist, there is a potential risk of container and container space shortages, reminiscent of the port congestion witnessed during the Covid-19 pandemic. This scenario may contribute to higher production costs and heightened competition for shipping space, particularly during the Chinese New Year period."
He said in light of this situation, the International Trade Promotion Department and Internal Trade Department have been tasked over the coming week with organising a meeting with various shipping lines and the TNSC to gather information on shipping costs and assess how they might increase. The TNSC will present proposals to prevent shipping lines from taking advantage of the situation and to ensure fairness in freight pricing, he said, adding that the Commerce Ministry will implement cooperative measures before resorting to regulatory action.
Mr Keerati said since delayed shipments might negatively affect certain small-scale exporters, leading them to encounter financial liquidity, the Export-Import Bank of Thailand has vowed to address such liquidity issues.
"If the situation persists and leads to a shortage of containers, it will impact costs, and we need to wait to see the clear effects on exports in January 2024. However, we believe it will not affect Thailand's overall exports this year," he said.
Chaichan Chareonsuk, chairman of the TNSC, said the council is closely monitoring the events at present and is preparing to engage in discussions with shipping lines to obtain information on additional expenses for containers that have already departed Thailand as well as those that are about to be dispatched.