Congestion at Laem Chabang to add B20 billion to Thai shippers’ costs

Exports from main deep-sea port surge as tariff deadline nears, trucking costs rise.

Congestion at Laem Chabang to add B20 billion to Thai shippers’ costs

Thai exporters and importers risk more than 20 billion baht ($616 million) in added annual logistics costs as congestion worsens at Laem Chabang, the country’s main deep-sea port, driven by a surge in shipments ahead of potential steep US tariffs.

The Thai National Shippers’ Council (TNSC) has urged the government to address the growing congestion at the port in Chon Buri province. The call comes after the Land Transport Federation of Thailand announced plans to raise trucking fees starting in July, according to a statement on Thursday from the council.

A sharp increase in shipment orders — spurred by a 90-day pause in high tariffs proposed by the Trump administration in April — led to a 14% rise in Thai exports during the first four months of the year. The export growth has provided a lift to an economy weakened by declining tourist arrivals and sluggish domestic consumption.

Truck waiting times at the port have risen to as much as 20 hours per trip during peak periods, up from about eight to 10 hours previously. The shipper group estimates logistics costs will rise by as much as 20 billion baht (about $616.5 million) annually once the higher trucking rates take effect.

“This level of economic damage is too significant for the government to ignore or leave entirely to the private sector to handle,” the council said in the statement.

“Not only would this situation hinder Thailand’s export competitiveness, but the increased logistics costs will ultimately be passed on to Thai consumers through rising prices of goods and services.”

The port congestion stems from a combination of factors, including a reduced number of vessels, overcapacity, inadequate rail and road infrastructure, lengthy regulatory procedures and poor truck queue management.

The TNSC called on the government to establish a task force to address the issue at the policy level and to invest in infrastructure improvements at the port.

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