Business @ AsiaOne

Thai exporters hit by closure

They are struggling to find ways to get perishable goods and essential components to customers around the world. -Reuters

Fri, Nov 28, 2008
Reuters

BANGKOK - THAI exporters, taken completely by surprise this week by the closure of Bangkok's airports by protesters, are struggling to find ways to get perishable goods and essential components to customers around the world.

Mr Kasem Jariyawong, president of the Thai Air Freight Forwarders Association, said outbound air cargo through the main Suvarnabhumi airport was usually around 1,500 tonnes a day worth some 3 billion baht (S$127.3 million).

Of that, about 600-700 tonnes was perishable goods such as food, fruit, orchids and other flowers, and ornamental fish.

The rest was mostly electronics and computer parts, plus jewellery.

Suvarnabhumi was occupied late on Tuesday and the old Don Muang airport, still a major domestic hub, on Wednesday. All passenger and cargo flights have been cancelled.

A prolonged closure of the $4 billion Suvarnabhumi airport, a major Asian hub that can handle 3 million tonnes of cargo a year, would do serious damage to an export-driven economy already struggling to cope with a global slowdown.

The protesters see the airport disruption as a way of toppling the government, which they say is a front for former Prime Minister Thaksin Shinawatra, who was removed by the military in September 2006 and now lives in exile.

'The siege of the airport came totally unexpected,' Kasem told Reuters on Friday. 'Even though some of the perishables were refrigerated, they couldn't last that long and some have been returned to Thai owners as the quality of these products can deteriorate quickly.'

Some cargo owners had decided to move their goods out of Suvarnabhumi by container trucks and through the south to Malaysia, where they are airlifted from Kuala Lumpur, he said.

'Some of the outgoing electronic or computer parts couldn't be delayed as they have supply-chain deadlines to meet. They need to reach factories in China and other Asian countries on time.'

Some goods are also being sent by sea to Singapore, and then flown out from there.

'This process will add another one or two days to the shipping time, meaning it could take up to one week for goods using this 'sea-air' process to reach their final destinations,' Mr Kasem said.

Another 1,000 tonnes of inbound cargo and 600 tonnes of transit cargo also go through Suvarnabhumi each day.

No time to sue
The question of compensation may arise later, but for now, Mr Kasem said, exporters are fully focused on shipping their goods.

'We haven't had time to think about suing anybody, being occupied with how to cope with the immediate problem. What we and the shippers don't know is how long the siege will drag on.'

'I think both sides should take a step back and compromise for the national interest,' he said.

Prime Minister Somchai Wongsawat declared a state of emergency at the two airports late on Thursday, giving police authority to move in and remove the protesters, who have said they're going nowhere.

The government says commercial airlines can use U-Tapao, a Vietnam War-era air base 150 km east of Bangkok, as an alternative landing site, but Kasem said it was probably not much use for exporters.

'U-Tapao is not a viable alternative for air cargo because of the absence of cargo handling facility there. It's more convenient for passenger transfers or charter flights,' he said.

 
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