The Thai National Shippers' Council says a complete closure of the Strait of Hormuz would boost oil prices. However, negotiations are expected to address this issue and the situation will be resolved soon.
Dhanakorn Kasetrsuwan, chairman of the Thai National Shippers' Council (TNSC), said although a full shutdown of the strait could increase oil prices, the government is currently managing energy costs and he believes this issue will be settled soon.
Initially, the TNSC anticipated that major ports such as Jabel Ali, Doha and Dammam were likely to close all routes and the regional network, which would disrupt all exports to the Middle East region.
Last year, Thailand's exports to the Middle East accounted for 3.5% of total exports and disruptions could hinder overall export growth this year.
He added that imports would be significantly impacted as Thailand relies on the Middle East for 9.27% of all imports, particularly crude oil and fertilisers.
In the first five months of this year, Thailand imported over 41% of its crude oil from the United Arab Emirates, over 12% from Saudi Arabia and 3.35% from Qatar, with these three countries supplying 56.4% of Thailand's total crude oil imports.
Moreover, Thailand imported 42.3% of its fertilisers from the Middle East, with 27.7% from Saudi Arabia, 3.67% from Qatar, 3.48% from Jordan, 3.41% from Oman and 2.3% from Bahrain.
He said this dependency would inevitably impact Thailand's agricultural sector, driving up farming costs and creating price pressures, as increasing sales prices to cover rising costs might be difficult.
Mr Dhanakorn suggested Thailand diversify supply sources and increase crude oil stockpiles to ensure energy security. Increasing energy imports from the US could be beneficial.
However, switching to other sources might create challenges, as purchases are typically pre-arranged, and each source's oil quality affects refined products differently.
He said the government should also support the installation of solar rooftops for households and industrial facilities to reduce dependence on oil and natural gas, which could mitigate risk in the long term.
When it comes to fertiliser imports, Thailand should consider alternative sources such as Russia, China, Malaysia, Laos and Brunei, he said.
Regarding transportation options, secondary ports such as Jeddah in Saudi Arabia and Salalah in Oman could be utilised, with subsequent land transport to final destinations.
The government should also consider protocols for returning goods if necessary, such as customs procedures and import duties, he said.