Introduction
The ongoing conflict in the Middle East has been the source of much upheaval in the shipping and export sectors, and the impact has been felt in the Thailand market as well.
The conflict is expected to affect Thailand mainly through indirect channels, as Thailand’s direct trade exposure to the affected region remains limited. Key risks include rising freight rates, higher marine insurance premiums, longer transit times, tighter container availability, and volatile energy prices.
These pressures may increase production and transportation costs for Thai exporters, particularly on routes affected by vessel rerouting and schedule disruptions. The Ministry of Commerce has therefore noted that logistics disruptions and price transmission risks should be closely monitored.
This Update highlights the key areas in which the ongoing conflict is impacting Thailand’s shipping and export sectors.
Government Measures to Mitigate Trade and Logistics Risks
To mitigate the risks, the Ministry of Commerce has introduced six proactive measures, particularly relevant to international trade and logistics:
1. Price management and anti-profiteering controls
Close monitoring of consumer goods prices to prevent hoarding and unjustified price increases, while tracking the pass-through of higher energy costs.
2. Diversification of raw material sources
Coordination with importers to assess inventory levels and reduce supply chain risks by sourcing from alternative regions and promoting the use of domestic inputs.
3. Exporter support and logistics management
Engagement with the private sector to assess rising freight and insurance costs, alongside providing advisory support on cost management, delivery terms, and market diversification.
4. Coordination with shipping lines and logistics providers
Ongoing monitoring of shipping routes, port congestion, and supply chain continuity to assess impacts on export cost structures.
5. Enhanced role of commercial attachés
Overseas trade offices have been tasked with reporting on trade conditions, importer confidence, and regulatory developments, and advising Thai exporters on risk management.
6. Monitoring inflation and price stability
Assessment of the impact of rising energy and logistics costs on inflation and export value, to support timely policy responses.
Transport-Sector Monitoring Measures
In parallel, the government has established a logistics “war room” to closely monitor developments and coordinate responses across agencies.
The Ministry of Transport has also instructed relevant authorities, particularly the Marine Department, to:
- supervise water transport operators;
- ensure that freight charges remain within legally permissible limits; and
- closely track developments in international freight rates.
Following the escalation of the Hormuz situation on 22 June 2026, the Thai National Shippers’ Council urged the government to maintain export-support measures, building on earlier initiatives announced by the Ministry of Commerce on 9 March 2026 and by the Ministry of Transport on 18 March 2026. These measures include reducing energy and logistics costs, improving trade facilitation, accelerating free trade agreement negotiations with key partners, and supporting Thai businesses accessing new markets.
Concluding Words
Overall, while the Middle East conflict is unlikely to affect Thailand through direct trade exposure, its indirect effects on freight costs, insurance premiums, energy prices, and shipping schedules are becoming increasingly significant.
Thai exporters should therefore review logistics costs, delivery timelines, insurance coverage, contractual allocation of cost increases, and alternative sourcing or routing options to mitigate potential disruption.
If you have any queries on the above, please reach out to our team set out on this page.
For regional corporate & commercial or shipping related matters, please see Rajah & Tann Asia’s Regional Shipping Practice and Regional Corporate & Commercial Practice for more information.
Contribution Note
This Legal Update is contributed by the Contact Partners listed on this page, with the assistance of Counsel Rawi Meckvichai, Senior Associate Toon Thanakam and Associate Kwanchanok Inkam.
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