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Thai Trucking Industry Crisis: Leaders Urge Government to Lower Diesel Prices or Increase Cargo Fees

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Truckers in the Northeast are waving a red flag, urgently calling on the government to either lower the skyrocketing price of diesel or raise the cargo transport fees. Without these measures, they fear their trucks will soon become relics of the past, parked indefinitely. Wichai Sawangkhachon, the president of the Northern Transport Association (NTA), highlighted that nearly half of the over 10,000 trucks owned by the 700 member businesses of the NTA are currently gathering dust. A staggering 3,000 trucks have been repossessed by finance companies due to unpaid loans, a situation Wichai describes as dire.

The key culprits behind this trucking nightmare? Blame it on the soaring diesel prices and a noticeable dip in demand for truck transport services. Wichai emphasized that these twin factors are driving truckers out of business at an alarming rate. The impact of these hurdles isn’t just theoretical—it’s being felt on the ground, where operators are struggling to keep their wheels turning.

Adding more weight to Wichai’s concerns is Somphon Hirunyasut, president of the Northeastern Service Union Transport. He noted a distressing trend: increasing numbers of operators are throwing in the towel, unable to weather the storm of financial losses. This trend took root during the economic downturn triggered by the Covid-19 pandemic and has since been exacerbated by ongoing rising costs. It’s been a game of survival, and many are losing.

Somphon pointed out a rather disheartening comparison to neighboring countries. In Laos, truckers enjoy a diesel price that’s 3.7 baht per liter lower than in Thailand. And if that’s not enough to drive one to tears, truck head prices in Vietnam are roughly half of what Thai operators are paying. It’s a brutal global classroom where the lesson is clear: the grass truly is greener on the other side.

Adding another layer to this complex issue is a looming free trade agreement between Thailand and China. The agreement promises tax waivers to Chinese truck transport operators, a change that Somphon fears will be devastating for local truckers. As if the current competition wasn’t already tough, this deal could make it even harder for Thai truckers to keep their engines running. Chinese operators, who are already dominating in neighboring countries, will have an even easier time winning customers and operating freely between Thailand and these nations.

Both Wichai and Somphon’s voices echo a chorus of frustration and concern. They are pleading for urgent interventions to avoid a full-blown crisis in the trucking industry. Their demands are clear: either lower the diesel prices or increase cargo transport fees so that truckers can keep their businesses afloat. As it stands, without significant changes, many more trucks could soon be off the roads for good.

39 Comments

  1. Alex Johnson August 7, 2024

    The government should definitely lower diesel prices. How are truckers supposed to survive if fuel costs are draining their wallets?

    • econ_guru99 August 7, 2024

      Lowering diesel prices may seem like a good short-term fix, but it’s not sustainable. The market will adjust, and prices will rise again.

      • Alex Johnson August 7, 2024

        But if we don’t do something now, these truckers will go out of business before any ‘market adjustment’ happens!

      • Samantha L. August 7, 2024

        Agreed, these are people’s livelihoods we’re talking about. Immediate action is needed.

    • TruckNut2020 August 7, 2024

      Absolutely! Lower fuel costs and save our trucks!

  2. Mike Lee August 7, 2024

    Maybe raising the cargo transport fees is a better idea. It’s fairer and ensures that the costs are shared.

    • TraderJoe August 7, 2024

      But then the higher costs just get passed on to consumers. We’ll all end up paying more.

      • Mike Lee August 7, 2024

        True, but the burden has to fall somewhere. Better than letting an entire industry collapse.

      • John S. August 8, 2024

        It’s a delicate balance, but protecting jobs has to come first.

    • LogisticsJunkie August 7, 2024

      Raising fees makes sense. It would discourage over-reliance on trucking and make other transport methods more competitive.

  3. Nina P. August 7, 2024

    Why isn’t the government pushing for more fuel-efficient or electric trucks? We need long-term solutions, not band-aids.

    • greenearth_guy August 7, 2024

      Totally agree, an investment in green technology now will pay off big time in the future.

      • Nina P. August 7, 2024

        Exactly! And it would reduce dependency on volatile fuel prices.

      • Henry B. August 8, 2024

        Good point, but that takes time and money. These truckers need help now.

    • Tony L. August 8, 2024

      Electric trucks are great in theory, but can they handle long hauls like diesel trucks?

  4. truckers_united August 7, 2024

    It’s frustrating that we are being compared to Laos and Vietnam. Our conditions are completely different!

    • globalist_view August 7, 2024

      Yet, their truckers manage to survive with lower costs. Maybe Thailand’s trucking industry needs a reform.

      • truckers_united August 8, 2024

        Reform is fine, but we need immediate relief first! We’re drowning here.

      • Leah_M August 8, 2024

        Global competition is tough. Thai truckers need to adapt or get left behind.

    • Jeff K. August 8, 2024

      Different standards and costs in neighboring countries should not dictate our policies.

  5. Kylie D. August 8, 2024

    What about the free trade agreement with China? That sounds like a disaster waiting to happen.

    • Simon T. August 8, 2024

      The FTA could indeed undermine local truckers. Our government needs to negotiate better terms.

      • Kylie D. August 8, 2024

        Definitely. It’s like opening the gates for more competition when our own industry is already struggling.

      • FreeTrader007 August 8, 2024

        Free trade helps economies grow. Maybe this will force Thai truckers to become more competitive.

      • GovtWatch August 8, 2024

        It’s essential to protect local industries while engaging in international trade. Striking a balance is key.

    • BusinessGuru August 8, 2024

      An FTA with China is crucial for economic growth, but it should be phased to allow local adjustments.

  6. M. Patel August 8, 2024

    Diesel subsidies might help in the short term, but long-term solutions should focus on economic diversification.

  7. Sarah W. August 8, 2024

    I can’t believe we’re letting finance companies repossess these trucks. They should show more leniency during hard times.

  8. Rick O. August 8, 2024

    If operators can’t manage their finances, how is it the finance company’s fault? Business is business.

  9. Andrew L. August 8, 2024

    Operators need to diversify their income streams. All eggs in one basket is never a good strategy.

  10. transport_vet August 8, 2024

    I’ve been in this industry for 30 years, and I’ve never seen it this bad. The government needs to step in.

    • young_trucker92 August 8, 2024

      Totally agree! Our future in this industry looks bleak without intervention.

      • transport_vet August 8, 2024

        We need experienced voices to guide us. Hang in there, help has to come soon.

      • Angela R. August 8, 2024

        Exactly, we’re feeling it at all levels. The entire community is affected.

    • Hanna J. August 8, 2024

      Government intervention is a must, but they seem to be dragging their feet.

  11. Sai C. August 8, 2024

    Maybe the government should incentivize other forms of transport, like rail, to relieve some of the pressure on truckers.

  12. Eco_Bob August 8, 2024

    Our focus should be on sustainable solutions, not quick fixes. Electric and hybrid trucks are the future.

  13. Matty T. August 8, 2024

    Cutting diesel prices might solve the problem temporarily, but are we ignoring the bigger picture?

  14. Sophia L. August 8, 2024

    I feel for these truckers; fuel prices are insane. But how realistic is it for the government to intervene every time there’s a crisis?

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