Logistic business hit by political turmoil

0
287

BANGKOK, 22 May 2014 — Thailand’s logistic industry has been severely hit by the current political turmoil and the trend will continue through the first half of 2014.

According to Tanit Sorat, the vice chairman of the National Economic and Social Advisory Council’s National economic and financial team, 180,000 trucks or 20% of the total 900,000 nationwide have been sitting idle for quite some time, while 30% of warehouses have been vacant. The two factors have dragged the whole logistical sector down.

The problem is attributed to the economic slowdown, and negative export growth. Tanit said the sluggishness especially for warehouse business would continue through the end of the second quarter of 2014.

According to Yoo Cheeryeunyongpong, the president of the Inland Transport Federation of Thailand, May is the beginning of the low season for transport business due to the arrival of the rainy season and the end of the harvesting season. The 30% unemployment rate among truck drivers is considerably higher than normal.