Shippers wary of US scrutiny

Shippers wary of US scrutiny

Longer docking if ports fail quality check

Cargo containers sit stacked at an inland depot near the border with Malaysia, an export channel in the South. The slow global economy is withering Thailand's exports. PATIPAT JANTHONG
Cargo containers sit stacked at an inland depot near the border with Malaysia, an export channel in the South. The slow global economy is withering Thailand's exports. PATIPAT JANTHONG

Exporters are urging Thai authorities to monitor quality inspections by the US closely in Thai ports for fear the new inspection regime may put more pressure on beleaguered shipments.

Nopporn Thepsithar, chairman of the Thai National Shippers' Council, said the TNSC was concerned about local port inspections by US authorities to ensure Thai ports had come up with appropriate measures to guard against terrorism, smuggling and contraband imports.

"If our ports fail to meet their quality requirements and are put on the watch list, vessels from Thailand may be subject to 100% strict inspections instead of random inspection as of now," he said.

"Longer docking may result in higher transport costs, troubling Thai operators."

Mr Nopporn said if Thai port quality was downgraded, it would exacerbate Thailand's credibility, which was already tarnished by the International Civil Aviation Organization's checks and human trafficking allegations.

"Although we expect Thai shipments will recover next year, there is nothing to be happy about yet," he said. "Next year's growth will be mainly from a low base after exports contracted for three straight years."

The National Economic and Social Development Board recently forecast export value would grow by 3% next year compared with a 5% contraction this year. Last year's shipments dropped by 0.41% after a 0.3% contraction in 2013.

The TNSC is more pessimistic, predicting export growth of only 2% in 2016. Mr Nopporn cited key external risks that may affect the world's supply chains including a sluggish global economy, escalating international conflicts and natural disasters.

The government's strategies on trade, manufacturing, logistics and investment facilitation are also factors affecting exports, he said.

Last week the Commerce Ministry reported exports fell for a tenth straight month in October due to soft global demand, plunging oil prices and volatile foreign exchange.

Exports fell by 8.11% year-on-year in October to US$18.6 billion. For the first 10 months, shipments were down 5.32% year-on-year to $180 billion.

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