Bangkok Shipowners and Agent Association

Bangkok Shipowners and Agents Association
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Home News Local Shipping News Thailand: Port congestion hits hard
Thailand: Port congestion hits hard PDF Print E-mail
Wednesday, 08 June 2011 08:01
 
Businesses are calling for a proper resolution within this month to the temporary closure of two wharves at the Bangkok Port because it is affecting Thailand's export sector.
Pornchai Euaweerawat, the vice-president of the Customs Broker and Transport Association of Thailand, said business operators would be hit harder should shipping companies continue to collect excessive service charges, especially when exporters are trying to lower their logistics costs.

The two wharves, out of a total of seven operating at the Klong Toey port, have been closed for maintenance since October last year, resulting in heavy congestion and inability of many ships to call at the port as scheduled.

Those that could find berths have asked for higher surcharges for unloading containers, with certain liners having asked for an additional US$50 to $100 per container, resulting in extra costs of up to 215 million baht a month to exporters.

Some operators had to switch to air transport for products that need immediate transport, while facing the burden of increased costs.

Suwat Asavathongkul, chairman of the Bangkok Shipowners and Agents Association, said 40% of all ships that used to operate at the Bangkok Port have switched to the Laem Chabang port which charges an additional $100 per container, the cost shipping companies have passed on to customers.

He urged the Port Authority of Thailand to adopt a fixed schedule for ships similar to airlines to replace the current "first-come, first-served" system that makes it difficult to schedule shipping deliveries.

"In the shipping business, uncertainty equals larger costs. If the Port Authority of Thailand is able to guarantee fixed berth windows, ships do not have to wait, and shipping operators will not have any excuse to collect more service charges for the fuel that is wasted. I think that is when everyone will come back [to the Bangkok Port]," he said.

Komol Sribangpleenoi, deputy director of the Bangkok Port's Ship and Cargo Operations Department, said that the port was almost deserted because of the switch to the Laem Chabang port. Since the beginning of May, the waiting time for ships at the Bangkok Port has not exceeded two days, he said.

To the suggestion of fixed berths, Mr Komol said that due to the various delay factors for ships, it would be difficult to fix schedules.

"They [shipping companies] are trying to create a new standard for us. Currently, ships have a waiting time of one day, which I think is already acceptable," he said.

The closure of the two wharves has lowered congestion by 40% from 200 container ships per day, he said.
Mr Komol said the two wharves were expected to open by the end of October this year.

Thanit Sorat, vice-chairman of the Federation of Thai Industries (FTI), estimated that 17% of goods destined for ship transport had faced delays in shipment, as there are products going to Europe and the United States that need to board parent ships in Singapore or Malaysia.

The FTI is inviting five political parties to discuss infrastructure issues next Friday, said Mr Thanit, who also heads the FTI's logistics department.