BANGKOK, 6 February 2013 Kasikorn Research Center is confident that shipping business will expand this year due to export growth, although operators are warned of fierce competition and natural disasters.
According to the research center, given the improving global economy, many industries across the board begin to expand. Cargo ships are likely to carry more products as several industries, such as auto-makers, have turned to manufacturing for export rather than catering to local consumers since the first car policy has expired.
The shipping volume is collectively expected to rise by 8-10% to around 100 billion baht worth this year with approximately 88 million more tons of commodities being shipped overseas through both the Bangkok Port and Laem Chabang Sea Port.
However, Kasikorn Research Center is warning cargo operators to mind several risk factors that may harm their businesses. They include rival competitions, natural disasters, labor shortages, minimum wage rise and the stronger Baht. Thailand is ranked the world’s 56th most equipped sea port, according the World Economic Forum’s 2012-2013 ranking.
Thailand still remains behind other ASEAN members like Singapore and Malaysia, in terms of shipping infrastructure.