Logistics firms are calling on the state to end quickly the escalating protest by rubber farmers in the South, saying 80% of transport in the region is frozen and Malaysia-bound shipments are in limbo.
Rubber farmers blockade a section of Highway No. 41 near the Surat Thani Cooperative in Phunphin district to demand the government arrest falling rubber prices on Monday. PATIPAT CHANTHONG
Losses are estimated at 300-400 million baht a day, with the cumulative total exceeding 1 billion baht as the protest enters its second week.
"Not only shipments bound for the South but products sent from the region to other parts of the country have been affected, plus international shipments to Malaysia," said Suwit Ratanachinda, an adviser to the Thai Logistics Service Providers Federation.
He said similar to elsewhere in Thailand, 80% of shipments in the South travel by road and rail transport, which has been blocked by the protesters since last week.
To cope, transport and logistics firms have been forced to use indirect routes, causing a delay of 10 hours on average and a 15-20% rise in operating costs such as fuel expenses.
If the protest lingers, marine transport will be an option, but limited routes are available, said Mr Suwit.
"We are asking the government to end it quickly, as we're shouldering increasing losses day by day," he said.
With deliveries of consumer goods facing delays, Mr Suwit warned that everyone will feel the pinch.
"Now the damage is going to expand, with protesters threatening to shut down Surat Thani airport. If so, not only logistics operators will be affected but also those in tourism and hotels," he said.
Surat Thani is a transit point for tourists travelling to nearby islands such as Koh Phangan and Koh Samui.
Thongyu Khongkan, an adviser to the Land Transport Federation of Thailand, said delivery of fuel such as liquefied petroleum gas and natural gas for vehicles will soon be affected.
"Now shelves in convenience stores are growing bare, as some consumer goods cannot be delivered to the southern region," he said.
With the main roads in Surat Thani blocked, goods bound for provinces along the Andaman shore are affected. Along the Gulf of Thailand, traffic has been slowed by the protest in Nakhon Si Thammarat.
"The government should quickly ease the situation by asking the protesters to clear some blockage to let traffic flow," said Mr Thongyu.
"I really feel sympathy for the protesters, but blocking the roads is not the right thing to do. It is illegal."
Pornsil Patcharintanakul, vice-chairman of the Thai Chamber of Commerce, said the blockade, if prolonged, would damage tourism and the overall economy.
However, Luckchai Kittipol, honorary president of the Thai Rubber Association and chief executive of exporter Thai Hua Rubber Plc, said the protests were unlikely to affect rubber exports, as shipments can still be made through the ports at Klong Toey, Laem Chabang and Padang Besar.