Thai Exports Slow as Shipping Costs Surge 30%

Thai Exports Slow as Shipping Costs Surge 30%

BANGKOK, April 12, 2026 – Thailand’s export sector is coming under pressure as global freight costs surge, raising concerns over trade volumes and consumer prices, industry officials said.

Shipping costs have risen by about 30% amid ongoing geopolitical tensions, contributing to a slowdown in exports. Food export volumes fell 10.5% in the first two months of 2026, reflecting the impact of higher logistics expenses on competitiveness.

The disruption is linked to instability along key global shipping routes, including the Strait of Hormuz and the Bab el-Mandeb, despite a temporary ceasefire between the United States and Iran. Around 30% of global cargo passes through the Suez Canal and nearby routes, making the region critical for international trade.

Robin Loh, chairman of the Singapore-Thai Chamber of Commerce and country director of Dawn Shipping, said Thailand faces mounting risks from elevated freight costs, route disruptions and volatile energy prices.

“Logistics costs will continue to rise and trade flows will slow, with consumers ultimately bearing the burden,” he said.

He added that complex regulations at ports, customs and permit systems are further weakening Thailand’s regional competitiveness, calling for reforms and greater adoption of digital technologies to streamline trade processes.

Analysts warn that further disruptions could force vessels to reroute via the Cape of Good Hope, adding up to two weeks to shipping times and significantly increasing costs.

While freight rates have shown some recent easing, including declines on routes from Shanghai to Europe, the outlook remains uncertain as tensions in the Middle East persist.

Businesses and policymakers are expected to closely monitor developments and consider measures to strengthen Thailand’s export resilience amid continued global supply chain risks.