The Infrastructural Process Has Amplified Paved Roads In Thailand Enabling Forwarding Services To Become More Time Efficient And Reach Un-Accessible Regions

1. Air transportation is used more prominently for international cargo movement than domestic movement, as land transportation is the preferred mode for domestic movement of goods

Thailand Cold Chain Market


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Thailand’s air freight began to recover gradually in 2021-2023, from contractions of 68% for local and 38% for international transportation in 2020 compared to 2019. Thai government’s investment in upgrading aviation capacity at Suvarnabhumi, Don Mueang and U-Tapao international airports as well as in developing the Eastern Aviation City will support Thailand’s position as an important investment and logistics hub.

2. Due to preparation requirements for Songkran festival and the New year, quarter one and four are the busiest season in cold chain industry in Thailand

Thailand Cold Chain Market 1


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Even during peak season, there is no significant change in prices for cold chain services. Also, contracts are usually for one year with a fixed negotiated price. The usual occupancy of 80-85% increases to almost full capacity for larger companies with still unmet demand usually served by outsourcing it to smaller players or renting warehouses from captive companies that have their own built large warehouses. It becomes difficult to find storage space for large consignments during peak time.

3. Companies are favoring more to enter in a joint venture to face the increasing competition

Thailand Cold Chain Market 2


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SCG Logistics Management Company Limited (“SCGL”) and JWD Info Logistics Public Company Limited (“JWD”), the two leading logistics and supply chain service providers at the   ASEAN level finalised a crucial merger deal to form a “partnership” under the name “SCG JWD Logistics Public Company Limited (SCGJWD). Thaimax cold storage, although has low pallets capacity, has strategic third party on demand partnership with other logistics companies like Mol logistics and operate at 95% capacity.

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Thailand Cold Chain Market 

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