Thailand Freight & Logistics Market


Firms like Mahindra Logistics and TVS Supply Chain Solutions have converted their logistics business units into third-party logistics firms and reaped the benefits. Mahindra Logistics raised about $129 million in its IPO, while TVS SCS has been raising private capital at attractive valuations over a period of time (raising about $114 million). We believe this trend may continue, considering the value it has generated for proprietors of large businesses. Furthermore, a focused strategy, aggressive talent, and capital infusion are likely to shorten the cycle of carve-out-to-value capture to a few years.

They can revisit the scale and relevance of their logistics assets and explore opportunities to partner with external parties to scale their adjacent businesses or divest to capture immediate value. Given the fast-changing, competitive business landscape in Asia, the window for harnessing growth and building a leading and sustained market position is quickly narrowing. The different stakeholders in the logistics ecosystem have a variety of strategies at their disposal to help them capture this opportunity. As with most other industries, the COVID-19 pandemic has transformed global logistics in profound ways. But unlike most other industries, the decline in economic activity during the pandemic has not affected global logistics too negatively. The consumption of goods—and thus the corresponding logistics needs—has been left relatively unaffected.

In this respect, it is essential for the Thai government to consider whether these laws will require amendment so that local logistics operators will be able to compete with investors from other ASEAN member states. Italian-Thai Development Plc, a major Thai construction company, has been making headlines in the region due to its major investment in building the Dawei Deep-Sea Port and Infrastructure Project in Myanmar. The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors. Kerry Logistics Network Ltd.-The company offers integrated logistics such as warehousing and distribution, value-added services and logistics facilities. The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

This acquisition will help Yusen logistics to strengthen its presence in Thailand. With the evolution of Asian Economic Community, Thailand’s position as a 안전놀이터 hub for the Greater Mekong Sub-region has been strengthened. This initiative has increased the country’s opportunities for cross-border trades and import-export shipments. Fierce competition is expected to occur, as professional multinational logistics companies owned by foreigners are expected to use their competitive advantage to gain significant market shares and compete with local logistics providers. To withstand the competition, domestic logistics firms have to identify the risks for their services among the neighboring countries and find avenues to manage the risks.

For instance, Japanese and Korean manufacturers in Thailand bring their domestic logistics partners or prefer to tie up with service providers of the same origin. Additionally, Japanese logistics companies are planning to expand their services in the market due to the rising trade and industrial activities. Global players dominate the Thai manufacturing industry, and these global players prefer global counterparts for their logistics operations. For instance, Japanese and Korean manufacturers in Thailand bring their domestic logistics partners or prefer to tie-up with service providers of the same origin.

Holding company FedEx hopes its package of subsidiaries will keep delivering significant market share. Its FedEx Express unit is the world’s #1 express transportation provider, delivering about 3.5 million packages daily to more than 220 countries and territories from about 2,000 FedEx Office shops. It maintains a fleet of about 690 aircraft and more than 50,000 motor vehicles and trailers. To complement the express delivery business, FedEx Ground provides small-package ground delivery in North America, and less-than-truckload carrier FedEx Freight hauls larger shipments. FedEx Office stores offer a variety of document-related and other business services and serve as retail hubs for other FedEx units.

Thailand’s geographical location gives it several advantages to become regional air, water, and multi-modal transport center. Therefore, the Thai logistics industry is highly competitive, not only among local operators but also among international ones. A Thai sea freight operator, Prima Marine Public Company Limited or PRM, yielded the highest net profit in the logistics industry in 2020. In terms of the courier industry, state-owned Thailand Post held the largest share for delivery volume in that year, followed by Kerry Express with its headquarters in Hong Kong. Thailand offers excellent investment potential as a leading automotive production base in the ASEAN region, a fast-developing region for the automotive manufacturing industry. Over 50 years, the country has developed from an assembler of auto parts and components into a top automotive manufacturing and export hub.

Get comprehensive shipping and visibility services with customized solutions for your unique business needs. We can also support logistics operations with our network based around local subsidiaries in North and Central America, China, and Southeast Asia. We can handle a wide range of goods from chilled/frozen foods to equipment and machinery. Dhorn Corporation— Trading Commodity 2 years Division1 Minerals and resources The division? S business strategy is to create a future earnings base for sustained growth the division will continue to expand sales driven by both distribution operations and investment in upstream resources… The number of logistics businesses in Thailand grew by 39.6 percent in January with room for greater growth following the implementation of the Regional Comprehensive Economic Partnership, the Trade Policy and Strategy Office said on Monday.

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