Thailand Freight Transport & Shipping Report Q2 2016
BMI View: Thailand is set to see positive growth across freight modes in 2016, but largely at a slower pacethan seen in 2015. This is as a result of the renewed political uncertainty in the country and the generalslowdown in the wider Asia Pacific region, which will negatively affect Thailand's exports and act as a dragon trade and freight volumes. We have revised down a number of 2016 forecasts from last quarter, butexpect freight volumes and trade figures to rebound going into 2017 and beyond.
Key Forecasts And Latest Updates
We have downgraded our forecast for 2016 total real trade growth from 5.2% to 2.4%, on the back ofdowngrades to most fundamentals amid renewed political uncertainty in the country.
An even more significant shift has occurred in our forecasts for Thailand's imports and exports over2016. Last quarter, we had expected robust growth in both, of 5.25% and 5.15% respectively. On theback of recent political developments and our more sanguine outlook on the Thai economy, we nowexpect contractions on both fronts, forecasting imports to shrink by 1.4% and exports by 2.1%.
While we are less bullish on its prospects than last quarter, rail freight is still set to be the outperformer inthe Thai freight sector, expanding by 4.7% over 2016.
We expect positive growth in freight volumes transported via both the inland waterway network andmaritime facilities in 2016, despite congestion issues and an uncertain economic environment in thewider region.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook