Industry Report: Trucks in Thailand

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Report Overview: Trucks - Commercial Logistics Industry

Salient Features

• Trucking is the leading mode of transportation in Thailand's freight industry due to Bangkok's role as a central industrial hub and the inefficiencies in the rail transportation system.
• Fuel stands out as a primary cost for logistics companies, with older fleet age, which leads to increased maintenance costs.
• The dominance of freight transport by road hinders the transition towards water and rail transportation. Apart from the areas surrounding Bangkok, the railway system mainly consists of single rail tracks.
• Logistics costs are on an uptrend with e-commerce trends significantly driving the industry during the pandemic.
• The industry is fragmented with lower barriers to entry, intensifying the competition level.

Value Chain/Business Model

• The industry is segmented broadly into individual truck operators and third-party logistics (3PL) companies.
• Individual truck operators led the industry with 3PL companies becoming gradually popular.

Other Points

• Cross-border truck logistics are supported by the establishment of ASEAN Economic Community (AEC) and Greater Mekong Sub-region (GMS) zones.

Commercial Logistics Industry Value Chain

Report Index

Industry Overview

• Trucking Dominates Thai Freight Transportation Industry Driven by Bangkok Being a Major Industrial Hub and Inefficiencies in Rail Transportation
• Individual Truck Operators Dominate the Industry; 3PL Logistic Companies Gradually Becoming Popular
• Fuel the Main Cost for Logistic Companies; Old Truck Fleets Result in Higher Maintenance Costs

Market Trends

• Dominance of Freight Transport Via Road Weakens with the Intended Shift to Water and Rail
• Logistics Costs on an Uptrend; Rising Trends in E-Commerce Drive the Logistics Industry During the Pandemic
• Establishment of AEC and GMS Zones Supported the Cross Border Truck Logistics

Competitive Trends

• Fragmented Industry with Low Barriers to Entry Intensifying Competition 
• SCG Logistics Management: Thai-Owned Third-Party Logistics Service Provider with Transports Covering Inland/ Multimodal Focus on Both Domestic and Cross Border
• DHL Distribution (Thailand): Subsidiary of World’s Leading Logistics Company
• Kiattana Transport: Logistics Player with Specialisation in Transports of Chemicals and Dangerous Goods