The Thai National Shippers' Council (TNSC) says the country must shift its focus to rely more on Asean markets, China and India, where growth opportunities and purchase demand are promising and logistics costs are low.

"Thailand is expected to face weaker export competitiveness in the long run," said president Nopporn Thepsithar.

"The only lifeline is to increase shipments to markets such as Asean, China and particularly India, which has been ramping up its port and transportation development."

The TNSC believes Thailand will struggle to achieve export growth of up to 3% this year.

It has projected a figure of only 1-2% due to the volatile global market after the unwinding of the US Federal Reserve's quantitative easing scheme, escalating international political conflicts and the El Nino weather phenomenon.

"Exports, which contracted for the third consecutive month in May, bringing down the value of the first five months by 1.22%, have well and clearly reflected Thailand's lowered competitiveness and the impact of the world's fragile economy on Thai shipments," said Mr Nopporn.

Thailand's exports fell by 2.14% year-on-year in May to US$19.4 billion, bringing down the value of the first five months by 1.22% to $92.9 billion.
The decline was attributable largely to weak global farm prices, particularly rubber, tapioca products and rice as well as falling shrimp supply due to the lingering effects of early mortality syndrome.

Imports, meanwhile, plunged 9.32% year-on-year to $20.2 billion in May and 14% to $94.4 billion in the first five months of the year, bringing the trade deficit to $1.55 billion.

Although the US State Department’s downgrading of Thailand to Tier 3 in its 2014 "Trafficking in Persons" report has yet to affect purchase orders for Thai products such as garments and textiles, seafood and sugar, the impact will be felt from next year, Mr Nopporn said.

He said shipments to the EU were expected to remain in good shape despite the grouping’s recent decision to scale back political ties with Thailand following the May 22 military coup.

Nonetheless, the TNSC warned that shipments to the EU, mainly of seafood, processed food, sugar and processed fruits and vegetables, might be hit by the possible termination of the Generalised System of Preferences (GSP) agreement in European countries later this year.

If the GSP is cut, Thai goods exported to the EU would be subject to a 12% import tariff next year, up from 9.6% now, making Thai shipments less competitive in the EU market, particularly against Vietnamese products.

"In the short term, the government sector is desperately needed to give full support on marketing for the private sector such as ways to help lower export costs and accelerate cutting logistics costs," Mr Nopporn said.

"In the medium and long term, the government must tackle the labour shortage and labour development, regulations to facilitate trade and border trade and preparations for free trade area talks."

http://www.bangkokpost.com/business/news/418198/shippers-ask-for-greater-asian-focus