LOGISTICS COSTS IN TRANSPORTING GOODS FROM THAILAND TO SHANGHAI, DURING THE COVID-19 EPIDEMIC

Abstract

The objectives of this research were to analyses and compare the logistics costs limitations of exporting goods from Thailand to Shanghai, during the COVID-19 epidemic. This research examined the transportation of goods, including Full Container Load (FCL) and Less than Container Load (LCL), from international freight forwarding. under various international shipping agreements in transporting goods. This research examined a triangular aspect of information from academic experts, business sector and the executive director of the International Freight Forwarders Association.

The study results revealed that the average logistics costs of transporting goods from Bangkok Port to Shanghai with FCL was 56,840.70 Baht per 1x20 GP container comprising 78.88% transportation costs, 3.12% warehouse costs, 5.29% storage costs, and 12.71% administrative cost, while LCL incurred average logistics costs of 15,613.40 Baht for 5.4 CBM broken down to 48.55% transportation costs, 6.81 % warehouse costs, 6.81% storage costs, and 37.82% were administrative costs. Additionally, it was found that the COVID-19 epidemic created an opportunity to export goods from Thailand to Shanghai due to increased demand for Thai products as a result of the decline in Thai export activities; but offset by the threat that freight forwarders are now burdened with higher costs due to increased logistics costs. It was also found that two of the 2010 International Commercial Terms, namely FOB and CIF terms, were appropriate. Moreover, exporters and importers must also take into account the cost of local charges that they have to pay as well.