Thai Shippers' Council Flags US Transshipment Report Risk
The Thai National Shippers' Council (TNSC) voiced concern over Thailand's inclusion in a White House transshipment report. This may reduce US confidence in Thai exports, potentially leading to stricter inspections and higher costs for businesses.
Transshipment Concerns
The Thai National Shippers' Council (TNSC) expressed concern regarding Thailand's inclusion in a White House transshipment report. This report, titled "The Great Transshipment Scams", names over 40 countries globally. Thailand is classified as a Tier 2 country, alongside Vietnam, Malaysia, and Indonesia. Tier 2 status shows significant illegal transshipment volumes.
These countries also reveal deeper integration into China-linked supply chains, including input sourcing and manufacturing platforms. TNSC Chairman Dhakorn Kasetrsuwan called the report a major warning sign for Thailand's export sector.
Potential Business Impact
Tighter US inspections on Thai goods, particularly those with high Chinese content, could follow. Legitimate Thai exporters may face longer customs clearance times. They could also incur higher inspection and documentation costs. The US is developing an artificial intelligence (AI)-enabled "detective border" system.
This system will analyse shipping routes, product origins, components, and supply chains to identify transshipment. Future inspections may extend beyond standard documentation. They will trace supply chains in greater detail, demanding provable country of origin.
Government Response and Recommendations
Commerce Minister Supaporn Poompootum stated the ministry is not concerned. Thailand's trade negotiation team already provided explanations and supporting data to the US in May. This was part of Section 301 investigations into excess capacity. Mr Dhakorn, however, urged the government to clarify criteria with the US.
This includes country of origin and substantial transformation, plus acceptable processing levels. He also recommended a trusted trader system. This system would distinguish compliant businesses, enabling trade facilitation and fewer unnecessary inspections.
Next Steps for Businesses
Mr Dhakorn also suggested Thailand establish an early warning system. This would identify origin and supply chain risks before exporting to the US. The government should use this situation to accelerate local content development. It should also support domestic raw material and parts production.
This approach would attract genuine manufacturing investment, moving beyond minimal processing or repacking for re-export. For businesses, this means increased scrutiny on supply chain provenance and a need for robust traceability systems. Other Asian economies, like Vietnam and Malaysia, face similar challenges.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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