Thai SMEs Navigate Shipping Hurdles, Explore New Export Markets

Thai SMEs Face Mounting Shipping Pressure—Market Diversification Becomes Imperative

Thai small and medium enterprises are confronting a critical juncture in their export strategies. Shipping constraints—encompassing elevated freight costs, capacity bottlenecks, and unreliable vessel schedules—are increasingly eroding the profitability and competitiveness of traditional export models that have long depended on efficient, affordable ocean freight to reach global customers. In response, industry advocates and government bodies are encouraging Thai SMEs to look beyond conventional trade lanes and pursue opportunities in emerging or underutilized markets. This shift signals that supply chain challenges in Southeast Asia are no longer temporary friction points but structural headwinds requiring strategic repositioning.

The underlying dynamics reflect post-pandemic volatility in global shipping combined with structural imbalances in container logistics. Thai manufacturers, historically integrated into global supply chains focused on North American and European markets, relied on predictable maritime routes and competitive freight rates. Today, capacity constraints on key Asia-to-West shipping lanes, combined with demand surges from other regions, have inflated rates and extended transit windows. Simultaneously, Thai ports are experiencing periodic congestion, further delaying departures and compressing booking windows. For SMEs operating on thin margins—particularly in sectors like textiles, ceramics, food processing, and light engineering—these cost increases directly threaten profit viability.

Why Market Diversification Is the Pragmatic Response

Rather than waiting for shipping normalization—which industry analysts suggest may take 12–24 months or longer—Thai SMEs are being advised to diversify their customer and geographic footprint. This approach offers multiple advantages. First, it reduces exposure to any single shipping lane or port, spreading logistics risk across multiple routes and carriers. Second, emerging markets in South Asia, Southeast Asia, Africa, and the Middle East often feature shorter transit distances from Thailand, resulting in faster delivery times and lower freight expenses. Third, accessing these markets earlier positions Thai firms to build brand presence and customer loyalty as regional purchasing power expands.

Practically, this means Thai SMEs should conduct market research into regulatory requirements, tariff structures, and demand profiles in target regions. Government export promotion agencies can facilitate this through trade missions, market intelligence services, and financing programs. Private logistics providers can support entry by identifying cost-effective shipping consolidation opportunities, regional distribution hub arrangements, and multimodal transport solutions (e.g., combining truck, rail, and sea carriage) that optimize cost and speed.

Operational Implications for Supply Chain Teams

For companies supporting Thai manufacturers or integrating Thai components into their supply chains, the takeaway is clear: freight strategy and sourcing geography must be reassessed. Key actions include:

• Conduct a comprehensive freight audit: Benchmark current shipping costs and transit times by destination. Identify opportunities to shift to alternative ports (e.g., Laem Chabang alternatives or nearshore consolidation points).
• Evaluate inventory and forecasting buffers: Extended or unreliable lead times necessitate higher safety stock or improved demand sensing to avoid stockouts.
• Explore alternative sourcing: Consider whether components or finished goods can be sourced from other Southeast Asian suppliers with better port access or from regional competitors closer to emerging target markets.
• Negotiate contract flexibility: Build in freight escalation clauses and lead-time flexibility into supplier agreements to protect against future volatility.

The broader message is that supply chain resilience increasingly depends on geographic diversification and logistics optionality. Thai SMEs that successfully navigate this transition by building export presence in emerging markets and optimizing their freight strategies will emerge stronger. Those that remain passive or assume conditions will return to pre-pandemic norms risk losing market share to more agile competitors. For supply chain professionals, this is a call to action: reassess assumptions about stable shipping lanes and cost structures, and invest in scenario planning and alternative route development now.

Source: Bangkok Post (https://news.google.com/rss/articles/CBMirwFBVV95cUxPdDBzMXlhRHJxWm95SGsySHN5emNZazA4RGhWZlZCZUdHNzhPYUVhX0NDM2pJV0FRck11Q2JqZmw5S1d5Q3dhUm5qV3puRmc3OG0zVWlHVTk3RTkxR0RBX1NzYnhjUEJOVTBiMjJpUU9FU25LbEtKTktRazJoUGEzRFl1NWxlOXlPbzFjbkE4dzM1eHhIcG50eTVsR0JKUkZBeWJleW9wclBOYmNxWTBv?oc=5)