Category: <span>Thailand & Asia</span>

Measures to upgradeThailand’s logistics industry

In recent years, the Thai government has realized the importance of the enhancement of the capacity, competency and efficiency of the country’s logistics service providers, especially those offering transport and warehouse-management services. The objective is to boost the sector to develop ; to enable contribution to national economic growth by lowering production and delivery costs, as well as to enhance the country’s competitiveness.

With these objectives in mind, public and private agencies have shown interest in the development of logistics services that are related to various activities in a bid to support trade and the conduct of international business.

Multimodal transport operators (MTOs) have different tasks and responsibilities to those of international freight forwarders. The main duty of an MTO is to provide transportation of goods under a single contract but arrange with at least two different modes of transport. An international freight forwarder, on the other hand, might perform its duty as an agent or a principal, but it will run the activities separately. Although freight forwarders nowadays also provide door-to-door services, they may separate their transport into different modes, such as transport by sea or by land. Importantly, there is currently no law that supports their carrier status, especially where it comes to liability for damaged goods. When there is a problem, the civil and commercial codes on carriage of goods and the law on carriage of goods by sea shall be applied as appropriate.

MTOs are contractual carriers who are able to fulfil their role in multimodal transport, whether that involves transport by land, sea or air. MTOs have the status of carriers with laws to support their operations.

The government is considering allowing foreign investors to take a greater role in freight forwarding and MTO services, especially under the framework of the ASEAN Economic Community. As more players come forward, Thai operators -from shipping lines to freight forwarders – will have to adjust and develop their potential to cope with both the change and fiercer competition.

Opportunities for Thai MTOs in the international arena

Thai freight forwarders are capable of providing transport-management services and international supply-chain support to exporters and importers. However, there are still limitations on capital and expansion of their services.

International freight forwarders and MTO service providers need to develop the quality of their services in order to create a competitive advantage. Therefore, the following proposals should be considered as a matter of priority:

• International freight forwarders and MTOs should develop an expertise in service provisioning that demonstrates superior service, punctuality and professionalism, in bid to gain the trust of their customers. Furthermore, they should be able to offer a complete range of transport services, and this variety should enable them to assist customers to deliver their goods on time, while saving them money. As well, they should provide consistent training for their staff, in bid to assure customer confidence from exporters, importers and other logistics users.
• International freight forwarders and MTOs should develop wide-ranging networks, both domestic and international, through which they can coordinate transport services to best cater for the requirements of their customers. They should be able to offer end-to-end services that can add value to the transactions of both importers and exporters.
• International freight forwarders and MTOs should have a substantial amount of working capital. Short- and long-term financial strength should be an operational standard, in order to build confidence among customers.
• International freight forwarders and MTOs should become “one-stop service providers”, able to offer advice on import and export activities as well as providing other internationally-accepted information from easily-accessible databases. Their main activities should be grouped^, such as customs procedures, transport. inventory management, data management and procurement, while supplementary activities such as cargo handling, packing^, customer relationship management and so on, should be grouped separately.
• International freight forwarders and MTOs should develop their technology capabilities, to align their services with those available internationally and to cater for the nature of their customers work. For example, tracking systems are not widely used by Thai enterprises, when compared to foreign firms, because of capital constraints and the need for such technologies to be mutually applied with distant operators. However, if Thai operators can develop advanced technologies on their home territory, this will help to improve customer satisfaction and enhance their competitiveness.
• International freight forwarders and MTOs should provide educational programs to disseminate their knowledge to both customers and business partners. They should organize seminars on topics that are beneficial to their customers and their partners, and can help to strengthen the industry

Adjusting and developing Thailand’s logistics service providers will help to enhance the competitiveness of the country’s exporters, who face increasing foreign competition. Local operators must strive to improve their business conduct; to gain more efficiency and reduce their costs, while maintaining the highest service quality in order to satisfy the needs of their customers. Hence, logistics and supply-chain management has to become a primary strategy for building the capacity of Thai operators. Those operators who can best respond to the needs of their customers will be the winners in the coming market competition.

According to the guidelines for international trade, freight forwarders hold responsibility for delivering goods to destination countries. This is especially important for small firms that have to use consolidation services from freight forwarders in the case of less-than-a-container-load (LCL) consignments. But, as mentioned earlier, while the Multimodal Transport Act B.E. 2548 supports the status of MT0s, there is no law to clearly define the status of international freight forwarders. Due to this lack of legal status, freight forwarders receive no tax privileges and find difficulty in competing with other kinds of transporters. To help overcome this hurdle, the Thai International Freight Forwarders Association (TIFFA) has submitted a letter to the Ministry of Finance and the Revenue Department asking them to consider waiving the 7 per cent value-added tax on international freight forwarders’ services.

Thailand badly needs a law to clearly define the role of international freight forwarders in various capacities, such as agents or Non-Vessel Operating Common Carriers. Furthermore, the law should recognize the status of the Thai International Freight Forwarders Association and its role in supervising the ethics and service standards of international freight forwarders.

The Multimodal Transport Act applies to MTOs and shipping lines that provide international cargo services involving two or more modes of transport, obliging them to register their MTO licenses with the Merchant Marine Supervision Division of the Marine Department. The law has an objective to provide protection for shippers or transport service users.

Enforcement of the law should be improved to ensure that various parties strictly abide by its provisions. Exporters or shippers should be encouraged to familiarize themselves with the law, which exists to protect their interests.

Shipping from and to Phuket

All Inclusive Rates for shipping from and to Phuket

Our door-to-door rates include:

• Land transport costs (considering the departure from warehouse/factory to the port/airport of origin and from the port/airport of arrival to the warehouse/factory)
• Local handling and transport costs at ports of origin and destination
• Shipping & Exchanges
• Delivery of management and documentation
• Customs duties, without taxes charged on the international purchase of your stock.

Door to door incoterm

We work with incoterm DAP (delivered to the site) for our door-to-door service. There is delivery of goods at the point agreed by the customer. All costs and insurances associated with the main transportation are included in our door-to-door rates, while import costs are not included.

Sending FCL or LCL door to door

In sea freight, you can choose 2 ways to ship your products. Usually it depends of the volume of the shipment, but it also relies on others factors such fragility or timing. Those two options are simply the FCL which is the Full container (20 feet or 40 feet) and LCL which is a shared container.

Road freight from Phuket:

The choice of road freight (or trucking) with Docshipper represents a reliable alternative to sea and air. Indeed, although this mode of transport allows you to get longer, it offers real security to your merchandise at much more attractive prices.

We offer a trucking service on an international platform. We accompany you to any destination for any destination. We also offer parallel services such as packaging or customs formalities.

Whether it is a standard or door-to-door shipping, our platform-form stands out for its high level of security and modernity, which is perfectly combined with national or international logistics operations. We consider every need of our customers, and we adapt our process according to your project to find the best solution for you, your time and your budget.

The trucking service of Siam Expedition is distinguished by its quality. Thus, you can be certain that your merchandise will arrive intact and in time, at the best price.

Information on road freight

To ensure the best success and the best development of your company, a good organization of logistics is essential. At Docshipper, we are aware. That is why we use all our network and our know-how to offer you a complete range of services that will perfectly meet your requirements in terms of quality and cost.

Network management

Our supply management services are a range of services that help you manage and consolidate all your transportation needs (multimodal, road, maritime, air or rail), as well as the needs of your supply chain. Supply. Our offer enables you to obtain the creation, management and realization of your logistics, guaranteeing you a wider and more complex transport network.

Transportation management

For medium and large sized shipments, our supply chain solutions, we can establish a transportation management that will improve the performance of your business, with competitive freight rates. Thus, your logistics needs will become simpler, more efficient and more profitable. We use an automated tool to manage the online order price, contact with the various service providers and contract management, shipment visibility and management reports.

The full LTL (Less-than-Truckload)

Trucking Docshipper offers logistics at regional, national or international level. We also offer optional options such as insurance or urgent mention. Our offer is distinguished with its personalized services, its listening salespersons and your qualified employees.

Complete truck loading services

If you need an immediate quantity of goods or relocate your premises, we have a fleet of trucks that are dedicated to your company’s expectations. For more information, do not hesitate to contact us, we will return you in the highest delay.

What does our door-to-door service include?

Complete delivery

Our door-to-door service includes all the necessary steps to ship the cargo, from its origin to the destination:

• The collection of goods from the consignor’s warehouse or from the address indicated by the consignor. On the other hand, the management of the cargo remains your responsibility.
• Sea, air or land freight.
• Import and export taxes, but VAT and other taxes are not included.
• The delivery of the goods, once unloaded, to the destination that you indicated to us.

Domestic and transborder rail freight forwarder

We are a freight forwarder and we also offer our services in all Asia. We can provide intermodal freight for all companies throughout ASEAN, our core business. This will allow companies to reduce costs and this offers an alternative to road transport.

The intermodal rail is also a long-term transport solution, it can be a real door-to-door service solution. It is also a more economical means of transport for companies, which will respond more rapidly to the growing need of the consumer.

Safety is also more important in this type of transport. Indeed, intermodal rail transport greatly reduces the risk of delay and / or theft of merchandise in the cargo. It is also considered a more environmentally friendly means of transport since it requires less fuel.

Intermodal transportation

Intermodal transport is a means of transport of goods that uses at least 2 modes of transport (trucking, rail or boats) without handling the freight. Thanks to these different means of transport one allows oneself to have the best characteristics of each transport used, this also brings savings for the sender. This brings a real scalable capacity for shippers, so if you need a door-to-door service, contact us to know more about our intermodal solutions.

Customs regulations on international move from/to Phuket

Household goods & personal effects

Some products can be imported into Thailand without any tax for the foreigner who imports them, but these personal effects are subject to specific conditions. If the person importing the goods has diplomatic status, holds a valid one-year Thai work permit, his goods enter within six months of his arrival in Thailand. If the above conditions are verified, only one ship or air can be authorized, and the shipper can bring his domestic appliances only free of duty. The rule is similar if it is a Thai national who wants to return his property and personal effects to Thailand. He must, however, prove that he has resided for more than a year in a foreign country and on a continuous basis. It is only by air and sea that goods can circulate, and each of the electrical appliances is exempt from duty.

Anyone not complying with the above rules will have to pay fines. This is the case for all returning Thailand or foreigners who import household appliances and personal property in Thailand. The amount varies according to the objects and is negotiable with the customs service. Siam Relocation will do everything possible to limit the price of these tax obligations to the maximum.

The sender is not obliged to be present in person during customs clearance at the port or airport, but we must despite all present his original passport and a work permit, also original, one year to the Thai authorities During clearance. The shipper must therefore already be in Thailand for the dispatch to be cleared from the customs. A returning Thai national must present his old and current passport.

 

Prohibited & restricted goods

Some goods are prohibited at the time of entry into Thailand. This includes firearms, ammunition, pornographic material and short wave radios.

Vehicles and move

Foreign diplomats may import a vehicle into Thailand free of duty. Indeed, the Ministry of Foreign Affairs of Thailand must send a letter verifying its status and request that the Thailand Customs authorize the duty-free importation. For other foreigners and Thai nationals importing a vehicle is a very difficult thing in Thailand. The procedures are very complex and very long to import his vehicle. The right to evaluate can reach up to 300% of the purchase value of the vehicle.

Pets on international move

There are special regulations for domestic animals in Thailand. Dogs, cats and birds can be imported without a quarantine period. For this you will need a health certificate dated less than 7 days and a vaccination card in progress.

Pets can be sent as cargo and the fee will be around US $ 4000 per animal. Prices vary depending on the type and size of the animal. No fee is charged if the animals are brought in excess baggage.

Phuket is one of the southern provinces (Changwat) of Thailand. Neighboring provinces are Phang Nga and Krabi, although Phuket is an island and its borders are not terrestrial. North of the island is Phuket International Airport.

Geography of Phuket

Phuket is the largest mainland province of Thailand located in the Andaman Sea, west of the Malay Peninsula. It is very mountainous, with a mountain range west side which aligned north to south. The mountains of southern Phuket extend 440 kilometers from the Kra Isthmus. The highest point of the mountain chain is the Khao Phra Phuket Mi, with an altitude of 1138 m; while the highest point on the island itself is Mai Tha Sip Song (Twelve Canes), at 529 m.s.n.m. About 70% of the island is covered with forests. The western coast has several sandy beaches, but the east coast is generally swampy. The southern end of the island is Laem Promthep, a place very appreciated to watch the sunsets.

The main tourist region of the island is the beach of Patong, which also concentrates most of the nightlife of Phuket, besides being the largest shopping center of the island. Other popular beaches are Karon, Kata and Nai Harn to Bang Tao.

The island was affected by the tsunami of December 26, 2004 that devastated much of the coasts of the Indian Ocean

Economy of Phuket

The exploitation of tin mines was an important source of income for the island since the sixteenth century. Many Chinese workers were employed in the mines, and their influence on Phuket culture can be felt even today. With the falling price of tin exploitation definitively ended. Currently, Phuket’s economy rests on two pillars: rubber plantations (Thailand is the world’s largest rubber Producer), and tourism. Since the 1980s Phuket is one of the major tourist attractions of Thailand. Most of the sandy beaches of the island were transformed into tourist centers, with Patong, Karon and Kata are the most popular.

History of Phuket

The most significant fact in the history of Phuket was the attack by the Burmese in 1785. It is said that Sir Francis Light, a captain of the East India Company, sent a message to the local administration, warning that he had observed that Burmese forces were preparing for an attack. Kunying Jan, the governor’s wife, who had recently died, and her sister Mook, organized the defense of the island. After a month of siege, the Burmese were removed, the March 13, 1785 and the two women became national heroines, receiving the King Rama I, the honorary names Thao Thep and Thao Sri Sunthon Kasatri.

During the reign of King Chulalongkorn (Rama V), Phuket became the administrative center of tin production in the southern provinces. In 1933, the Monthon Phuket was dissolved and Phuket became a province.

The old names of the island include Ko Thalang and Junk Ceylan, an English Malay Tanjung Salang distortion (Cape Salang).

Religion in Phuket

Like most of Thailand, the vast majority of the population is Buddhist, but there is also a significant number of Muslims (17%).

Thai airport infrastructure

An increase of international passenger numbers, combined with a strong domestic traffic, led Thailand to accelerate its program of investment in airport infrastructure.
Thailand is facing a slower growing number of traveler in the last 20 months, due to the recent political events. The figures show that while domestic traffic rose 16.1%, the increase was offset by a 5.6% decrease in international passengers. Overall, the six airports run by Airports of Thailand (AOT) experienced an increase of 37.8% in passenger numbers (each year) and a 25% increase in number of flights.

The pressure is felt on many provincial airports that have launched major modernization programs. This program should greatly open up certain cities, increase tourism and air freight and reduce the crowds on the Bangkok airport.

Suvarnabhumi should increase its capacity as Don Meuang – second air hub of the capital – with the construction of a new terminal that will be ready in December 2016. The airport primarily serves low cost airline flights, and this increase in air freight relieve Suvarnabhumi.

To know more about Bangkok main airport, check their website : Suvarnabhumi Airport

Regional focus

While the two largest airports in Bangkok are the main focus of these investments, the government also target secondary airports in order to strengthen regional networks, with facilities in Chiang Mai, Phuket, Hat Yai and Chiang Rai.
AOT also seeks to enlarge Mae Sot airport, on the Burmese border, in anticipation of expected growth through special economic zone in the region. The Department of Transportation has announced an investment plan of 298 million baht for the project, which includes the acquisition of additional land for the expansion of the airport, with completion expected in 2018.

Thai airways, official national airline company of Thailand.