Joint committee addresses shipping container shortage

[webfact]

 

By Tanakorn Sangiam

   

BANGKOK (NNT) - The Joint Public and Private Sector Consultative Committee on Commerce, has addressed the issue of a shipping container shortage affecting the export sector at its latest meeting, and is also set to present the issue of a worker shortage to a Cabinet meeting.

 

The Joint Public and Private Sector Consultative Committee on Commerce, has convened in a meeting chaired by Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit, in which they addressed the latest development on a shipping container shortage affecting Thailand’s export sector; an increase in ocean freight charges, and the shortage of migrant workers.

 

After the meeting, the Minister of Commerce revealed the meeting had acknowledged that the shortage and supply of shipping containers has started to stabilize, with some 200,000 containers now available for export shipments.

 

The committee has agreed to expedite clearance procedures and unloading of cargo from containers, which are at present processes that cause a container shortage in some periods.

 

The committee has urged related agencies to address the market-driven increase in ocean freight charges in order to help exporters reduce costs and encourage large cargo vessels to call at Laem Chabang Port. The Minister of Commerce has directed the Ministry of Commerce’s Permanent Secretary to hold discussions with the Ministry of Transport on this matter.

 

A soft loan offer with a maximum total credit of 2.5 billion baht was proposed at the meeting by the private sector, with a request to allow private firms that have maxed out on their credit limits, to use their products in-stock as collateral.

 

The committee also acknowledged the issue of shortage of migrant workers in the sector, and is set to present this issue at an upcoming Cabinet meeting.

 

The Ministry of Commerce is now expected to propose a framework for an ASEAN-Canada Free Trae Agreement (FTA) to the Cabinet in late August, and a Thailand-EU FTA framework in this quarter.

 

-- © Copyright NNT 2021-07-17

 

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[RichardColeman]

3 minutes ago, webfact said:

A soft loan offer with a maximum total credit of 2.5 billion baht was proposed at the meeting by the private sector, with a request to allow private firms that have maxed out on their credit limits, to use their products in-stock as collateral.

But, wouldn't the loans on products in stock either prevent them being exported or the bank lose any collateral once they shipped them ? 

[sammieuk1]

Sure all the container's will magickly reappear to block off scores of Bangkok roads when there is a lull in covid 

[ThailandRyan]

Soon to be coming to a provincial morgue near you to be fitted with a refrigeration unit and then filled with bodies awaiting cremation and in cold storage 

 

Cases over 10k and over 100 deaths today it appears....stay safe

[mtls2005]

Seems like they're all being used for "exports"?

 

 

[MrJ2U]

8 hours ago, RichardColeman said:

But, wouldn't the loans on products in stock either prevent them being exported or the bank lose any collateral once they shipped them ? 

Good point.

[Scott Tracy]

13 hours ago, sammieuk1 said:

Sure all the container's will magickly reappear to block off scores of Bangkok roads when there is a lull in covid 

Ah, that's where they went to. Check all the cop shops and army bases. You'll probably find a few there.

[JupiterRising]

There is currently a worldwide shortage of containers, as most of them are in Europe and America ... Empty. 
no shipping company will return empty containers? As a container can be from 1,300 dollars to 6,000 dollars per container, and a ship carrying over 4,000 will always make a profit. 
most scontainer ships have costs (financial and administrative), of about 150k dollars per day.

therefore taking empty containers back to Asia is not economically viable.

so, how do you solve this problem ?

the west needs to open up, stop being locked down and START PRODUCING GOODS AND RAW MATERIALS TO SEND BACK TO CHINA. It is simple

Source:

https://www.freightwaves.com/news/no-relief-global-container-shortage-likely-to-last-until-2022/amp

[pegman]

9 hours ago, JupiterRising said:

There is currently a worldwide shortage of containers, as most of them are in Europe and America ... Empty. 
no shipping company will return empty containers? As a container can be from 1,300 dollars to 6,000 dollars per container, and a ship carrying over 4,000 will always make a profit. 
most scontainer ships have costs (financial and administrative), of about 150k dollars per day.

therefore taking empty containers back to Asia is not economically viable.

so, how do you solve this problem ?

the west needs to open up, stop being locked down and START PRODUCING GOODS AND RAW MATERIALS TO SEND BACK TO CHINA. It is simple

Source:

https://www.freightwaves.com/news/no-relief-global-container-shortage-likely-to-last-until-2022/amp

It's the service sector that has been shut down not manufacturing or commodity producers. What manufactured goods does China buy from North America? Pay for the shipping and there would be plenty of containers sent back

Edited July 18, 2021 by pegman

[JupiterRising]

On 7/18/2021 at 6:48 AM, pegman said:

It's the service sector that has been shut down not manufacturing or commodity producers. What manufactured goods does China buy from North America? Pay for the shipping and there would be plenty of containers sent back

Thanks for the reply.

But I think you are somewhat misinformed or non realistic to the reealization on containers and how they work. Most shipping companies always have full containers East 2 West and vice versa. Most raw materials to fuel the mass production in China comes from around the world. Including Europe North and South America. Plus Australia and SE Asia. China is a production powerhouse. It does not have the natural resources and materials underground !! They need to import to produce and export !

please take a look into the global production windmill a bit further.

thanks.

[pegman]

2 hours ago, JupiterRising said:

Thanks for the reply.

But I think you are somewhat misinformed or non realistic to the reealization on containers and how they work. Most shipping companies always have full containers East 2 West and vice versa. Most raw materials to fuel the mass production in China comes from around the world. Including Europe North and South America. Plus Australia and SE Asia. China is a production powerhouse. It does not have the natural resources and materials underground !! They need to import to produce and export !

please take a look into the global production windmill a bit further.

thanks.

Well, l slugged it out for 37.5 years in the North American railway industry, including a 1/2 decade stint at a intermodal terminal, and can tell you that bulk  commodities are not by in large shipped by container. They are transported in gondola, bulkhead flat and hopper freight cars to port.