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TNSC wants container shortage fixed, bemoans freight fee increases by other countries

TNSC wants container shortage fixed, bemoans freight fee increases by other countries

The Thai National Shippers’ Council (TNSC) is planning to submit a motion to the Joint Public and Private Sector Consultative Committee demanding it solve the shipping-container shortage problem faced by exporters.

“We would like the government to allow the use of containers seized by the Customs Department for export, as well as reduce freight fees to encourage businesses to import empty containers,” TNSC president Kanyapak Tantipipattanapong said.

“Furthermore, aid should be provided to exporters of agricultural and industrial products who are yet to ship their products overseas due to a lack of containers.”

The TNSC reported that exporters have been hit by the inadequate supply of containers, as more than 1,000 containers are still stuck overseas due to Covid-19 restrictions.

“The outbreak has also resulted in rising freight fees in many destinations. As of December 2020, Europe’s fees increased by 160-220 per cent compared to the previous year, while fees in Asia rose by 17-100 per cent. Meanwhile, Australian fees increased by 112-197 per cent and in the United States it went up by 73-196 per cent,” she said.

“To make matters worse, China is now 'front-load shipping' their products before the long break for Chinese New Year [starting on February 12], which has resulted in a further hike in freight fees,” Kanyapak said.

The TNSC estimates that total exports in 2021 will expand by 3-4 per cent due to the global economic recovery and before the impact of the new wave of Covid-19 is felt.

“We expect to see the highest growth in the food sector as well as products that are related to working from home,” she added.

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