Good News! Reduction in Empty Container Import Fees & New Support Measures for Exporters
February, 16 2021
As Asia, including Thailand, resumed exporting goods to the US and Europe, exporters have started to recover financially. However, US exports to Asia have declined, leading to a severe container shortage and continuously rising freight rates.
Government Solutions to Address the Container Shortage
At the first 2021 Joint Public-Private Commerce Committee (JPPCC) meeting, chaired by Deputy Prime Minister & Minister of Commerce Jurin Laksanawisit, the following measures were introduced:
1. Alternative Shipping Solutions
- Exporters of non-containerized goods (e.g., agricultural products and rubberwood) should switch to bulk shipping.
- Dedicated vessels have been arranged, set to commence operations in the third week of February.
2. Reduction in Empty Container Import Fees
- The Port Authority of Thailand (PAT) has proposed this measure to the Cabinet for approval on February 9, 2021.
3. Streamlining Large Vessel Docking at Laem Chabang
- Six 400-meter-long vessels can now dock at Laem Chabang Port without requiring special permits.
- The approval process has been shortened to just 1 day, allowing these ships to operate for 2 years under the new regulation.
4. Shifting China-Bound Exports to Land Transport
- Exporters shipping goods to China are encouraged to use land routes via Thailand-Laos-Vietnam-China, reducing reliance on containerized sea freight.
- Border crossings remain partially closed, necessitating expanded land transport capacity.
Efforts to Reopen Additional Border Crossings
Currently, 40 out of 97 border checkpoints are open, with three more in progress:
- Pa Saeng Border Checkpoint (Ubon Ratchathani)
- Chiang Khan Border Checkpoint (Loei)
- Hai Sok Port (Nong Khai)
The government is negotiating further border openings to facilitate land-based logistics as an alternative to shipping.