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Logistics industry in Thailand - statistics & facts

The logistics industry in Thailand started booming when the country accepted free trade agreements with foreign countries. Since then, numerous international companies from various industries have established their operations in Thailand, co-invested with Thai corporations. This called for wider logistics activities in the country to fully satisfy supply chain operations. The contribution of the logistics industry to the GDP has shown growth for the past decade, up until 2020 when it was interrupted by the COVID-19 pandemic.

The state of the logistics industry in Thailand

During the COVID-19 pandemic, the volume of parcels delivered through road, air, and water transportation was reduced due to restrictions imposed to counter the pandemic. For road transportation, restrictions such as curfews and limited border entrance were the main reasons for lowered delivery volume. Meanwhile, deliveries via water transportation suffered from the decreasing quantity of shipping containers. And as experienced by many other countries, Thailand’s air transportation was heavily scaled-down, resulting in declining air freight volume. However, the pandemic encouraged Thai consumers to purchase online more often than ever. The expansion of the e-commerce market has certainly benefited last-mile delivery in the country as its revenue climbed drastically.

The competitive landscape of logistics industry

Thailand’s geographical location gives it several advantages to become regional air, water, and multi-modal transport center. Therefore, the Thai logistics industry is highly competitive, not only among local operators but also among international ones. A Thai sea freight operator, Prima Marine Public Company Limited or PRM, yielded the highest net profit in the logistics industry in 2020. In terms of the courier industry, state-owned Thailand Post held the largest share for delivery volume in that year, followed by Kerry Express with its headquarter in Hong Kong.

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