Logistic operators to reduce service charge by 5-10% next month

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BANGKOK – Logistic operators have agreed to reduce their service charge by 5-10% starting next month.

The agreement came after talks between the Department of Internal Trade and local logistic operators regarding the recent reduction of diesel price. Director-General of the department Wiboonlak Ruamraksa said that 30% of the operators had already decreased their operation charges, adding that, after the meeting, the remaining 70% of the operators will follow suit in January 2016. 

According to President of the Land Transportation Association of Thailand Yu Jiayuenyongpong, transportation fare has a tendency to fall further in the foreseeable future, due to the facts that the number of logistic operators exceeds the market’s demand and most of the clients are agriculturalists facing diminishing produce because of drought.

Meanwhile, Thai Federation on Logistics Secretary General Thongyu Kongkan admitted that transportation expense is one of the flexible expenses, but argued that logistic operators may be discouraged to follow safety regulations if they are forced to reduce their service charge excessively. He reminded the public that operators still have expenses other than fuel in running their business.