Thailand Logistics Industry

Thailand has established itself as a logistical hub, supplying all of ASEAN’s logistical services requirement. Thailand is strategically located. Thailand has made significant investments in the development of its infrastructure in the Greater Mekong Sub-region (GMS).

Thailand is fast becoming the key logistic center for all major multinational corporations with production bases and sales networks in the Indochina region. Because the ASEAN Economic Community (AEC) is expected to be well-established, it will contribute to more efficient liberalization of trading and services.

  • Definition / Scope
  • Market Overview
  • Market Risks
  • Top Market Opportunities
  • Market Drivers
  • Market Restraints
  • Industry Challenges
  • Technology Trends
  • Pricing Trends
  • Regulatory Trends
  • Other Key Market Trends
  • Impact of COVID-19
  • Market Size and Forecast
  • Market Outlook
  • Technology Roadmap
  • Competitive Landscape
  • Competitive Factors
  • Key Market Players
  • Strategic Conclusion
  • References

Definition / Scope

In Thailand, logistics service refers to a collection of operations that include both the production and distribution of raw materials and finished goods. Freight forwarding, warehousing, and other value-added services like customs brokerage, inventory management, order fulfillment, and product repair are among these services. According to World Bank data from 2020, Thailand had a total of 9,800 logistic operators, with the bulk of them being small businesses. The majority of Thailand’s local logistics companies are trucking fleet operators who pick up goods from one location and deliver them to another. Thailand is one of six countries in the Greater Mekong Sub-region working to boost cross-border transportation connectivity by strengthening its transportation links with other member countries. In 2020, the market for logistics increased from 2,500 THB billion (US$ 80 Billion) to 4,600 THB billion (US$ 146.2 Billion).

Road transport has traditionally been the main mode of transport for Thailand’s exports and imports. The nation is located in the heart of Southeast Asia, sharing borders with Myanmar, Laos, Malaysia, and Cambodia, making cross-border trade easier. Because of the country’s extensive road network, roadways are currently the most favored mode of freight transportation. During the review era, the logistics sector picked up the pace, with a CAGR of 9% (2020-2027). Thailand is expected to attract long-term foreign direct investment (FDI) into technology-driven manufacturing segments such as electronics and automobiles, putting pressure on existing logistics companies to upgrade their capabilities in the near future.

Thailand serves as a major ASEAN transportation hub as well as a logistical hub. Thailand is found in Indochina and Southeast Asia’s Mainland. Myanmar, Laos, Cambodia, and Malaysia are its immediate neighbors. Many manufacturing enterprises from around the world want to establish a presence in the Greater Mekong Sub-region (GMS). To minimize product costs for Asian countries, they are focusing on Vietnam and Myanmar as manufacturing locations. It is due to rising product costs in ASEAN nations such as China.

Thailand’s logistic industry, which is growing in popularity as a regional supply chain management hub, is providing prospects for enterprises based abroad.

Market Overview

During the forecasted period, the Thailand freight and logistics market is expected to grow at a CAGR of 9%. (2020-2027). The Thai logistics market is expected to develop over the forecast period, owing to the country’s constantly expanding economy, government spending, and possibly expanding exports.

Thailand, after Indonesia, has the second-largest economy in ASEAN. It is a middle-income nation with an open economy. Since the COVID-19 pandemic and lockout have had a major impact on the years 2019 and 2020, resulting in a loss of consumption and employment. The GDP growth rate dropped to 2.4% in 2019 and is forecast to fall further to (6.5)% in 2020.

This drop is predicted to rebound by 3.5% in 2021. In 2018, overall expenditure and private consumption both increased by 4.6 and 3.8%, respectively. The value of exports increased by 7.7%, while inflation averaged 1.1% and the current account surplus stood at 37.7% of GDP. A newly elected government, continued global economic growth, increased government spending, and increased public investment in key infrastructure projects are all factors that contribute to growth.

As Thailand’s economy becomes more interconnected as a result of rapid growth in foreign trade services, express services are likely to become more essential in the near future. Because of the growing demand for this service in the B2C business sector, the express delivery market will be driven by the E-commerce industry’s growth.

Market Risks

Fragmented Market

The Logistics Industry in Thailand is fragmented. There exists a large number of local players in the market and they offer products to the local markets at a much lower price when compared to the organized international players. The factors leading to the fragmentation of the Logistics Industry in Thailand are lower entry barrier, no economies of scale and strong competition in the market. A fragmented market will offer businesses with lower margins and expensive costs. They also have no advantage of scale when dealing with customers.

Financial Risks

The logistics Industry has very low gross margins and profit margins at the bottom line. As a result, businesses in this sector must run as effectively as possible. This includes successfully managing capital equipment such as trucks, ensuring that they are used 95% of the time or more, are well maintained, and use the most efficient routes to convey product from point of origin to point of destination. The business also necessitates a high level of micromanagement; if these aspects fail, the industry’s businesses may fail and eventually suffer financial losses.

Top Market Opportunities

Thailand’s Emerging Automotive Industry Provides Opportunities for Contract Logistics

Thailand, as a leading automotive production base in the ASEAN region, a rapidly developing region for the automotive manufacturing industry, offers excellent investment potential. Over the last 50 years, the country has evolved from an auto parts and component assembler to a leading automotive manufacturing and export center. Thailand is the world’s 13th largest automobile parts exporter and sixth largest commercial vehicle producer, with exports to more than 100 countries, and the largest in the ASEAN region. Thailand plans to produce over 3,500,000 vehicles by 2020, making it one of the top countries in the global automotive industry.

Almost all of the world’s leading automakers, assemblers, and component manufacturers have a presence in the region. Toyota, Isuzu, Honda, Mitsubishi, Nissan, and BMW are among the companies that manufacture the majority of the country’s approximately two million vehicles per year. The existence of multiple companies indicates a growing opportunity for supply chain management, and as a result, logistics service providers profit from the country’s thriving automotive industry.

Automotive logistics has quickly become one of Thailand’s most significant industries, and it is still expanding today. Recognizing the significance, ANJI-NYK logistics (Thailand), a leading automotive logistics provider, provides end-to-end automotive logistics to Thai automobile manufacturers, focusing on the delivery of finished vehicles and automotive spare parts.

Cold-chain Logistics Services in High Demand

Thailand is a major exporter of agricultural and marine products, so climate control transportation and cold chain logistics are in high demand. Thailand’s agricultural exports have increased dramatically in recent years. During the period 2015-2020, Thai exports of fruit, meat, and fishery products increased by more than 8% annually on average. Meanwhile, the rise of the middle class, the growth of the expatriate population, and increased tourism have all boosted demand for imported foods and pharmaceuticals. Over the last decade, Thai imports of these goods have more than doubled.

Perishable foods require careful packaging, temperature control, and monitoring during transportation and storage to ensure food safety and quality. In Thailand, however, only about 30% to 40% of fruit and vegetables are shipped through cold chain logistics, compared to about 80% in developed countries. In this regard, cold chain logistics and related facilities, such as temperature-controlled warehouses and fulfillment centers, have a lot of room for development. Konoike Transport, based in Japan, is one of several foreign investors who have set up cold storage and temperature-controlled warehouses in Thailand, with the company now covering more than 20,000 square meters in central Thailand. Temperature-controlled freight forwarding is also offered by several logistics multinationals, including DHL and UPS.

Emergence of last mile deliveries coupled with logistics automation

Last mile logistics refers to the final step of the delivery process from a distribution center or facility to the end-user. The provision of efficient last mile deliveries is experiencing a significant upswing in the logistics sector, thanks to the ever-increasing proliferation of e-commerce companies. Furthermore, receiving a package the same day it is delivered is becoming increasingly popular, resulting in the growth of last-mile delivery services. Furthermore, as the pharmaceutical and food and beverage e-commerce industries grow, the logistics industry is putting a greater focus on last-mile delivery options. In addition, logistics companies’ ongoing efforts to provide efficient last-mile deliveries are another opportunity that is expected to accelerate the logistics market’s development in the near future.

Furthermore, automation is gaining popularity in the logistics industry. One of the main logistics developments providing lucrative opportunities in the logistics industry is the emergence of logistics 4.0.

Market Drivers

Exponential Growth in e-commerce industry

With an advanced e-commerce environment and increased spending by citizens in those countries, demand for consumer products is generated as incomes in the ASEAN countries steadily grow. Thailand, ASEAN’s second-largest economy, has one of the region’s highest internet user populations. In the world, there are approximately 57 million internet users who are well-versed in the use of digital technology, mobile, and e-commerce. Thailand has become an ideal growth area for e-commerce businesses due to its growing internet user base.

The continued growth of the e-commerce industry has increased the demand for logistics space, resulting in major changes in Thailand’s supply chain and logistics operations. Many courier companies have set up shop in the region, offering low-cost, high-quality logistics services and bringing domestic end-to-end delivery to the market. In order to meet the increased demand, several other companies have built central warehouses as well as smaller drop-off and pickup points throughout the country. For small and medium businesses (SMEs), this means more convenience and a faster delivery method to their customers at a lower cost. Some of the country’s major e-commerce and logistics companies include Central Group, Aden, DHL Express Thailand, Kerry Express, Lazada, Pomelo, and Shopee. Furthermore, due to the ongoing demand generated by e-commerce, the amount of air freight handled at Thai airports is significantly growing.

Strong growth in app downloads from traditional retailers in Thailand, such as Charoen Pokphand Group Co. Ltd. and The Central Group’s Big C hypermarkets and Tops supermarkets, suggests that the services are now becoming more well-known outside of the Bangkok metropolitan area, where they had largely focused until the pandemic, increasing the scope for freight and logistical expansion.

Supportive Government Policies

The Thailand Government aims to position the country as an ASEAN gateway, and has announced that it will support the logistics sector by improving infrastructure and enacting trade-friendly policies.

The cabinet-approved Infrastructure Development Plan (2015-2022) of the Ministry of Transport calls for an investment of at least THB 1.8 trillion (USD 51 billion) in 20 mega-projects spanning all modes of transportation in Thailand, including roads, rail, air transport, and ports.

Thailand has signed numerous free trade agreements (FTAs) with major economies such as China, the United States, India, and others, and as a WTO member since 1995, it has been open to foreign firms operating and manufacturing in Thailand, resulting in a trade surplus over time. The government’s increasing investments in logistics infrastructure and the improving economy have created a highly favorable environment for freight forwarding and warehousing in the country. For example, Thailand’s ASEAN agreements have resulted in an increase in cross-border freight transportation via roads and ports with no major restrictions. It has also evolved into a manufacturing hub for a variety of industries, including automotive, retail, pharmaceuticals, and agriculture which is significantly driving the growth of the Logistics Industry in Thailand

Growth of Express Services

As Thailand’s economy becomes more integrated as a result of rapid growth in international trade services, express services are likely to become more important in the near future. Because of the rising demand for this service in the B2C business segment, the express delivery market will be driven by the E-commerce industry’s growth. Furthermore, given the advantages of shorter delivery times, the growing preference for a just-in-time inventory approach to lower inventory costs, the need to avoid lost sales opportunities, and the rising end-consumer demand for high-quality logistics services, express delivery services are increasingly becoming the preferred mode of logistics for a large number of users in the industry.

Market Restraints

Lack of uniform governance standard

The lack of governance is one of the main impediments to widespread adoption of digital logistics. The logistics industry’s high levels of fragmentation necessitate the development of a logistics IoT standard. To maintain profitability and viability, transportation and logistics companies around the world are focusing on increasing supply chain productivity. It is essential to keep governance as uniform as possible, as having one authority per sector will cause confusion. A high level of efficiency, on the other hand, would result in end-to-end advancements in connected devices and integrated platforms. A common standardization in the logistics and supply chain framework will make it simple and convenient for any service provider to deliver a wide range of solutions in a single bundle.

Lack of control of manufacturers on logistics service

A manufacturing or retailing business that uses logistics services must depend on the efficiency, competence, and integrity of logistics service providers. Manufacturers or retailers must rely on a logistics service provider in this case, which results in a lack of direct control. Furthermore, the retailer is unable to track warehouse activities, posing a significant threat to product quality.

Furthermore, outsourcing to a third-party logistics (3PL) could result in a violation of confidentiality, exposing personal details about customers or disclosing commercially sensitive information. As a result, the logistics market’s growth is expected to be hampered by manufacturers’ lack of control over logistics market in Thailand.

Industry Challenges

Slow adoption of digital logistics solution due to high capital investment

The digitalization of logistics operations necessitates significant capital expenditures, including the installation of automation equipment, software, and solutions, all of which are costly. Current processes are very expensive to replace. Another factor impeding the growth of the digital logistics market is the sluggish adoption of multiple IoT platforms, various protocols, and a large number of APIs due to integration complexities. Due to organizations’ unwillingness to move from manual practices to a digitalized process requiring high capital re-investment, the adoption of modern logistics solutions is lagging. Most businesses have a laid-back attitude toward emerging digital technology and depend on their intuition to make business decisions rather than embracing digital technologies. As a result, businesses with limited financial resources are unable to invest in automation systems, limiting the development of the digital logistics industry.

Technology Trends

Trend #1 Automation Will Change the Logistics Industry

The use of autorotation and robotic delivery systems in logistics is becoming increasingly popular. For flawless and effective loading, unloading, and distribution of materials or finished goods, robots are preferred. The use of robots has resulted in improved performance. Companies are investing in such industrial robots because they are aware of the truth. Amazon, for example, has launched Kiva robots. Aside from material and goods handling, robots assist businesses in processing and transportation of goods, as well as automating processes and improving company operations.

About 80% of warehouses are still run by hand in today’s economy. In the not-too-distant future, warehouse robotic automation is expected to open up a lot of doors. As a result, the global logistics industry is projected to see substantial revenue growth in the not-too-distant future.

Trend #2 Elastic Logistics

Companies can perform supply chain operations more efficiently with elastic logistics during times of fluctuating demand. It enables supply chain operations to be scaled up or down as required, depending on market demand. Elastic logistics addresses the issues that supply chain companies face, such as vessel underutilization, warehousing restrictions, and overstocking.

Trend #3 Autonomous Vehicles

By removing human errors when driving, autonomous vehicles boost vehicle safety and transport products safely. They improve first- and last-mile delivery quality because they are built to operate 24 hours a day, 7 days a week. Furthermore, autonomous vehicles increase fuel efficiency for long-haul routes by using platooning strategies, reduce traffic delays, and optimize travel routes by using AI-enhanced technology.

Pricing Trends

Because the business model is heavily dependent on cargo commerce, carrier costs, and revenue management, freight forwarders operate at a low margin of 1–4% and are highly vulnerable to profit declines.

A transistor impact in profitability will result from a disproportionate shift in revenue and carrier costs; therefore, freight forwarders should have matured revenue management strategies that include suitable cost-cutting initiatives with an eye to operating costs.

Factors Impacting Customs Brokerage Services Cost

  • Customs brokerage fees are heavily influenced by hidden cost components. The primary hidden cost component that adds to the cost of customs clearance and customs visit costs is discovered to be corruption.
  • When there is a greater range of items, a single declaration is insufficient. Every additional declaration filed for customs clearance incurs additional fees. This raises the total cost of customs clearance even more.

Regulatory Trends

Domestic transportation and other service businesses are among the practices prohibited in Thailand under the Foreign Business Act B.E. 2542 (1999) (FBA), which states that international shareholding cannot exceed 49% of an entity’s total shareholding. The logistics industry is one of the services in which ASEAN countries’ equity participation is likely to change as a result of the AEC. The AEC Blueprint currently provides for 51% equity participation, which will rise to 70% in the future.

Given the wide range of logistics services available in Thailand, including maritime cargo handling, warehousing, customs clearance, and more, the growth of competitive logistics businesses would necessitate not only financial resources but also technical know-how. Local players will need to build their capacity to compete effectively as other ASEAN member states increase their equity participation in Thai companies to up to 70%.

Other Key Market Trends

The Growth of 4PL (Fourth-Party Logistics)

Fourth-Party Logistics (4PL) is the next move forward, able to handle capital, infrastructure, technology, and even external third-party logistics and provide a comprehensive supply chain solution. In addition to logistics activities, 4PL companies have extensive consultancy services. Logistics policy, inbound and outbound logistics, inventory planning and management, market planning, and analytics are all included in the service. Some of the companies that provide 4PL services include Deloitte, Accenture plc, BDP International, and DB Schenker Logistics. While 4PL is a recent concept, it is expected to gain traction in the coming years as medium and large businesses pursue a full logistics solution.

Impact of COVID-19

The worldwide supply chain has been damaged by the Coronavirus epidemic. The crisis put a burden on transportation and logistics resources that had never been seen before. Due to the enforced shutdown in certain nations, shippers are experiencing uncertainty in the transportation of products. Due to a supply/demand imbalance and a shortage of capacity for long-haul and last-mile fulfilment services, logistics networks are being disrupted. The logistical efforts are further hampered by a lack of personnel and restricted working hours.

The emergence of COVID-19 has a cascading effect on the DTM service (Domestic Transportation Management). In the afflicted areas, there has been an imbalance between arriving and exiting freight, which is lengthening the lead time. Service providers face a slew of issues, including transportation disruptions caused by the border closure and increased demand for warehouse space to keep current goods that can’t be sold due to the lockdown. To address this issue, 3PL firms have begun offering short-term storage identification services. DB Schenker Logistics is launching a service that locates vacant warehouse space. Customers should be able to discover additional warehouse space near their production site using this service, which will be available in 794 sites across 60 nations.

The current health issue has a significant impact on vehicle transportation. The volume of truckloads has decreased significantly, limiting the movement of heavy-duty and medium-duty trucks. With restricted capacity and a minor decline in trade volume, ocean freight operations are under control. Due to delays in customs clearance and an increase in blank voyages, shipping containers are piling up in ports, preventing goods from being delivered. Given the continued restrictions on international passenger flights, many airlines have begun to employ passenger planes as freight carriers. As a result, the carrier prices for air transportation have risen dramatically.

Market Size and Forecast

The Logistics Industry in Thailand is valued at US$ 80 Billion (THB 2.5 Trillion) in 2020 and is poised to grow at a CAGR of 9% in the Forecast period from 2020 – 2027 to reach a Market Size of US$ 146.2 Billion (THB 4.6 Trillion) in 2027.

Total logistics costs were 2,258.4 billion baht or US$ 72 Billion in 2019, or 13.4% of nominal GDP, representing a 3.1% annual growth rate, in line with the national economic downturn due to global economic instability caused by the US-China trade war.

Owing to the national economic downturn primarily caused by the coronavirus pandemic (COVID-19), which has severely impacted many countries worldwide, logistics cost estimates for 2020 are expected to be reduced to 12.9% to 13.4% of GDP.

Market Size Based on Mode of Transport

With a market value of over US$ 60 billion in 2020 and is estimated to grow at a CAGR of 5.2% to reach a Market Size of US$ 85.6 Billion, the roadways segment led the Logistics Market in Thailand. Over the projected period, the rising public-private partnership model and increased emphasis on logistics infrastructure are likely to promote the growth of highways. Moreover, the growth of the road transportation industry is aided by a number of government initiatives.

Over the projected period, the airways segment is expected to grow at the fastest rate. The recent coronavirus pandemic has hampered worldwide air freight commerce, leading in a significant reduction in air uplift capacity and, as a result, higher carrier charges. The Airways segment accounted for 8% of the Market Share and attained Market Value of US$ 6.4 Billion in 2020 and is projected to grow at a CAGR of 6.8% to reach a Market Size of US$ 10.14 Billion in 2027

Railways segment reached a Market Size of US$ 9.6 Billion in 2020 and is expected to reach a Market Size of US$ 14 Billion in 2027 growing at a CAGR of 5.6% in the forecast period (2020 – 2027).

Waterways segment attained a Market Value of US$ 4 Billion in 2020 and is projected to reach a Market Size of US$ 6 Billion in 2027 growing at 6% in the forecast period (2020 – 2027)

Market Size Based on End-Use

In 2020, manufacturing had the highest revenue share of 32%. Manufacturing and logistics are inextricably linked due to the industry’s complicated supply chain. The manufacturing sector entails obtaining raw materials and other components from a variety of sources located throughout the world. Logistics is a time-consuming task due to the participation of numerous suppliers and distributors. As a result of the benefits offered in terms of lower transportation costs, supply chain visibility, inventory and vendor management, business process improvement, and improved customer service, the industrial industry is outsourcing logistical activities. Outsourced logistics activities have increased in Thailand’s thriving manufacturing industry.

Manufacturing segment attained a Market Size of US$ 25.6 Billion in 2020 and is projected to grow at a CAGR of 5.9% to reach a Market Size of US$ 38.2 Billion in 2027.

Over the forecast period, the retail sector is predicted to increase at the fastest rate. The current retail industry’s backbone is logistics, which plays a critical role in same-day delivery and fulfilment capabilities. E-commerce and dedicated logistics services have cleared the path for small and medium-sized businesses to enter the third-party logistics sector, allowing retailers to expand their operations and offerings into semi-urban areas. Retail sector accounted for 22% of the Market Share and is estimated to attain a Market Size of US$ 17.6 Billion, growing at a CAGR of 6.6% to reach a Market Size of US$ 27.5 Billion in 2027.

Automotive sector constitutes 18% of the Market Share and is valued at US$ 14.4 Billion in 2020 and is poised to grow at a CAGR of 5.6% to reach a Market Size of US$ 21 Billion in 2027.

Healthcare sector accounted for 8% of the Market Share and attained a Market Size of US$ 6.4 Billion in 2020 and is projected to grow at a CAGR of 5.8% to reach a Market Valuation of US$ 9.5 Billion in 2027.

The Other sectors constituted 20% of the Market Share and reached a Market Valuation of US$ 16 Billion growing at a CAGR of 5.5% to attain a Market Size of US$ 23.3 Billion in 2027.

Market Outlook

Thailand’s logistics market is currently in its early stages of growth and is expected to change dramatically over the next five years, with a single-digit CAGR in terms of value expected from 2020 to 2027. Due to the extensive road network and the development of a mass transit rapid railway network, freight will continue to dominate the market in the coming years, supporting a diverse range of industries. The expanding E-commerce industry has provided chances for logistics companies to extend their operations across the country, and the need for logistics will continue to rise in the future years.

The expansion of the rail network does not negate the need for road transportation. On the contrary, due of the region’s growing population and commercial connection, there will be an even greater demand for road haulage. “Thailand will continue to develop as an industrial nation, with more manufacturing plants springing up in provinces outside of Bangkok.

The Office of Transport and Traffic Policy Planning’s (OTP) 2016 Transportation Action Plan will include three highway projects, five dual track rail system projects (meter gauge), five dual track rail system development projects (standard gauge), expansion of mass rapid transit networks, and increased capacity for air and maritime transport at Suvarnabhumi Airport and Lam Chaba Port.

Over the next three years, the general-purpose logistics sector will remain stable. Despite the fact that demand for warehouse space is expected to rise as a result of increased investment in industry and expansion in the domestic commercial and service sectors, particularly for e-commerce enterprises, continuous investment in new warehouse space in some locations may feed an oversupply to the market, making it harder for operators to boost rental rates.

Technology Roadmap

The Future of the Logistics Industry in Thailand is Digital supply chains and digitization

Digital supply networks are required for digital business. Digitization (processing documents) is a necessary, as is changing the game (even if there is still a lot to do).

In various domains, profound digital transformation is taking place, challenging the status quo. Existing players are being disrupted by innovative uses of technology in areas like as data analytics, the Internet of Things, and the cloud. Changing expectations and evolutions in the digital transformation economy (or fourth industrial revolution, or Industry 4.0) simply make digitalization a must across the logistics, transport, and manufacturing industries, where digital and always-on supply chains are becoming the new norm. 

Distribution Chain Analysis

The Distribution Chain of Logistics Industry in Thailand is as in the below image

Competitive Landscape

Thailand’s logistics market is fragmented, with a mix of international and domestic businesses. DHL enjoys a major position in the Thai logistics business, according to industry sources, with a presence in air and sea freight and experience in 3PL services. Other Global players with a substantial presence in specialized segments include CEVA, DB Schenker, Nippon Express, Expeditors, Yusen, and FedEx. In addition, as trade and industrial operations grow, Japanese logistics companies seek to increase their services in the market. Global firms dominate Thailand’s manufacturing industry, and these worldwide players prefer global equivalents for their logistical operations. Japanese and Korean firms, for example, bring their local logistics partners to Thailand or prefer to work with service providers from the same country.

Thailand’s position as a transportation hub for the Greater Mekong Sub-region (GMS) has been strengthened as the Asian Economic Community (AEC) has evolved. This program has improved the country’s cross-border trade and import-export potential. Road transportation is the most common means of transportation. Professional international logistics companies owned by foreigners are expected to leverage their competitive edge to capture major market shares and fight with local logistics providers, resulting in fierce competition. Domestic logistics enterprises must recognize the risks associated with their services in neighboring countries in order to compete and avert risks with globalization.

Competitive Factors

To provide expanded service capabilities to their consumers, market participants are focused on strategic partnerships such as collaborations and mergers and acquisitions. CJ Logistics purchased DSC Logistics in June 2018 to extend its footprint in the Asian market, particularly in Vietnam, Thailand, and China. Following its takeover, the company had a 44% increase in market share.

Production expansion, new product launch, acquisition, collaboration and other strategies enhance the company market share with increased coverage and presence. It also provides the benefit for organisation to improve their offering for third party logistics platform or services.

Key Market Players

Some of the Key Market Players in the Logistics Market in Thailand include

Deutsche Post AG is a postal service provider established in Germany. Post – eCommerce – Parcel, Express, Global Forwarding, Freight, and Supply Chain are the company’s four operating segments. The Post – eCommerce – Parcel section is responsible for both domestic and international mail, as well as dialogue marketing, nationwide press distribution, and all electronic mail delivery services. The Express category provides commercial and private consumers with courier and express services. The rail, road, air, and sea transportation of commodities is included in the Global Forwarding and Freight category.

CEVA Logistics is a $7 billion Global logistics and supply chain corporation that specializes in freight management and contract logistics. It was created in 2007 as a merger of TNT Logistics and EGL Eagle Global Logistics, with its headquarters in Marseille, France. CEVA has about 60,000 employees in 2021, spread across six regions and 160 countries.

DB Schenker is a logistics division of Deutsche Bahn AG, a German rail operator. In 2002, Deutsche Bahn bought the company and renamed it Schenker-Stinnes. It is divided into sections for air, land, sea, and contract logistics. Schenker AG and its various subsidiaries, which are part of the DB Schenker organization, handle global logistics activities such as Land Transport, Air and Ocean Freight, as well as Contract Logistics/SCM. The DB Schenker Rail brand has not been used in the rail freight business since 2016. Instead, it functions as a separate business unit inside the Deutsche Bahn Group under the name DB Cargo.

Nippon Express Co., Ltd. is a global logistics services company based in Japan. Its headquarters are in Tokyo, and it is traded on the Tokyo Stock Exchange. Nippon Express had yearly revenues of more than US$16 billion in 2017, placing it among the top five worldwide logistics service companies. Nippon Express operates a global network of over 40 countries, including company-owned businesses in 33 of them. Nippon Express Co Ltd purchased 67% of Panasonic Logistics, which is controlled by Japanese electronics giant Panasonic Corp, at the end of 2013.

Expeditors (Expeditors International of Washington) is a Seattle, Washington-based international logistics and freight forwarding company. In 1984, Expeditors became a publicly traded corporation when its shares were listed on NASDAQ under the ticker symbol EXPD (Nasdaq: EXPD), and in 2002, they were named to the NASDAQ-100. On the Fortune 500, Expeditors is presently ranked #374. In 2020, total revenues will have surpassed $10 billion ($ 10.116 billion).

FedEx Corporation, formerly Federal Express Corporation and then FDX Corporation, is an international delivery services firm based in Memphis, Tennessee. The moniker “FedEx” is a syllabic abbreviation of Federal Express, the company’s first air division, which was utilized from 1973 until 2000. FedEx Express, one of the first major shipping firms to provide overnight delivery as a trademark service, is the company’s most well-known service today. FedEx has now launched FedEx Ground, FedEx Office (formerly known as Kinko’s), FedEx Supply Chain, FedEx Freight, and a number of additional services through its various subsidiaries.

Strategic Conclusion

Due to huge investments in transportation infrastructure and essential legal reforms, Thailand’s logistics performance improved dramatically in 2020. Thailand climbed to 32nd place in the World Bank’s Logistics Performance Index 2018 from 45th place in 2016. Thailand ranked second only to Singapore in ASEAN, surpassing Malaysia, and seventh overall in Asia.

Thailand has made significant investments in transportation infrastructure as part of the 12th National Economic and Social Development Plan, which seeks to reduce logistics costs to 12% of GDP by 2021, down from 14% in 2016, when the 11th Plan (2012-16) came to a conclusion. Not only will the 12th Plan (2017-2021) demand for the improvement of transportation infrastructure in major cities and border towns, but it will also ask for improved connectivity with neighboring nations.

Thailand 4.0 envisions a new economic model for the country in order to propel it to the forefront of the global digital economy, which is projected to bode well for the expansion of Thailand’s logistics industry as a result of the implementation of digital transformation.



  • ASEAN – Association of South East Asian Countries
  • SMEs – Small & Medium Enterprises
  • B2C – Business to Customer
  • 4PL – Fourth Party Logistics
  • IoT – Internet of Things

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