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27 Dec 2022
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Road transport services

Business/industry trends from 2022 to 2024: Road transport businesses

August 25th, 2022

By Piyanuch Sathapongpakdee

EXECUTIVE SUMMARY

The road transport industry is predicted to expand between 2022 and 2024 at an average annual rate of three to five percent, helped by increases in commerce, manufacturing, and investment in essential infrastructure.

The government sector is getting better, as is the volume of agricultural goods and trade that is trending. Additionally, the company continues to assist clients with border crossings and trade, which has grown steadily and now includes business transactions.

Trading online has grown in popularity.

Due to the growing number of enterprises with available space and the rising cost of transportation, price competition is expected to intensify. Forwarding, big business owners, big business owners with potential, and potential for big business owners from outside, there is a trend that will increase in accordance with the rise in Chue Phe Ling Li's value from the crisis (Russia-Ukraine) and labor expenses. As a result, there is a tendency to concentrate on raising technological investment.

The current period presents a significant degree of ambiguity when it comes to expanding network partnerships and improving transportation efficiency to satisfy the demands of integrated transportation. This is a stressful factor, in fact. Without the use of networks or chemicals, small business owners and operators facilitate commerce.

Krungsri Research's perspective

The demand for goods transport is predicted to rise both locally and globally between 2022 and 2024, which will lead to a gradual expansion of the road freight transport industry. However, there is fierce rivalry, and high labor expenses, costs associated with raw materials that give high yields, and other factors that might hinder business performance, particularly for small and startup enterprises.

Consequently, networks and chemistry between partnerships are lacking.

Grocery delivery services that carry groceries that are refrigerated or frozen: Although the demand for shipping agricultural products will increase proportionately, revenue growth is predicted to stay at an average level, comparable to 2021. Climate change is predicted to enhance production, which will sustain and revive the need for reservoirs from an initial expense. The participants' profit margins in terms of commerce may increase due to the slower pace and increased competition.

 

Petroleum product transportation service for liquids and gases: Because of the country's expected increase in domestic and international demand for gas, oil, and water in the transportation and household sectors, revenue is still growing nicely.

In the meantime, there is increasing rivalry among businesses, which presents an opportunity for entrepreneurs to keep turning a profit.

   

Shipping and delivery services for goods and containers: The growth of the export and manufacturing industries, cross-border trade, and e-commerce enterprises are all expected to contribute to the business's income growth. Sectors where the government has policies in place to facilitate international transportation, in the meanwhile (including regulations and diesel oil price subsidies, provided the space is within the proper range).

All industries and associated sectors have seen an increase in investment, including those that deal with opening port terminals, services, or goods to be supplied in Portsmouth, Laem Cha Bang, or Mapta Put in relation to the introduction of Pay products in the Special Economic Zones regions.

Basic merchandise delivery service: Because of the volume of goods sent and delivered, which may generate some revenue, the wealth of major business owners with chemical facilities and networks continues to expand. Additionally, all associated firms that offer management, guidance, packaging, wrapping, transportation arrangements, and other relevant services to small and medium-sized enterprises (SMEs) and entrepreneurs are the source of this increased investment.

Due to the abundance of enterprises, independent transportation is on the decline. As a result, for the group of entrepreneurs, growing their revenue base will be challenging in the upcoming future. For firms to become stronger, this might need to be pursued in addition to business collaborations.

   

General data

Including the carrier, the business activity of transportation of products is crucial to the distribution of goods to the market on a national and worldwide scale. The main purpose of moving products in the warehouse and providing transportation services is the delivery of commodities.

Charupru at every stage of the supply chain, including the production of basic commodities, intermediate goods, and final goods. Therefore, the number of items, which varies based on the business's economic circumstances, determines the state of the enterprise.

Nation (Figure 1)

The five forms of transportation in Thailand are as follows: (1) road transportation, which includes vans, pickup trucks, refrigerated trucks, and containers, among other kinds of trucks. (2) A train used for freight transportation is called a rail system or rail transport. Numerous varieties exist. Routes and modes of transportation come in a variety of forms, such as industrial commodities, bulk items, and containerized goods. State Railway of Thailand is the sole excellent service provider (SRT) (3) Pipeline transportation: This refers to the movement of liquid commodities like chemicals, water, oil, and natural gas. (4) The majority of the time, transportation by water involves the use of extremely heavy commodities. Bulk building supplies as well as grain and other materials are typically transported across the nation by rivers. (5) Air transport is frequently used to move goods. Coastal delivery uses a freighter, conveyor, or barge to transfer cargo (Feeder ship) from port or deep-sea ports to support export and import activities. Products such as gems and jewelry, parts and equipment, electronic devices, materials, etc., including fashion products, transportation of goods in Thailand is crucial. These include products that are highly valued, require special care, are waterproof, light, or must be sent immediately to avoid damage or wear and tear.

Road transport makes up as much as 79.7% (Figure 2) of the nation's overall volume of cargo transit (based on the most recent data available for 2020).  The government sector has placed a high value on infrastructure development as a result of the past. The overall road length in the nation covers 91.6% of all transportation routes due to increased road infrastructure, surface kinds, hole patterns, etc. (Table 1). Road transport is characterized by its ability to convey information straight from the sender (or origin) to the recipient (destination) [1] and link the names. Other forms of transportation, including rail transportation, are not readily available as an affordable means of moving products from the point of origin to the destination. Road transport is essential because commodities must always be transferred to their destination via air and water beneath the truck. The total transportation costs for road products, which have consistently been more expensive than other modes of transportation, are a reflection of the nation's whole freight forwarding industry (Figure 3).