The Trade Policy and Strategy Office (TPSO) has reported that the ongoing conflict between Israel and the Hamas group remains tense and likely prolonged.
According to the TPSO, Thai exports to Israel in the first quarter of 2024 significantly decreased, while markets in other Middle Eastern countries like the United Arab Emirates and Qatar continue to perform well, reflecting the varying impacts on Thailand’s exports depending on each country’s situation.
The conflict has affected shipping through the Red Sea, increasing transportation costs and delaying delivery times. The escalating tensions between Israel and Iran continue to create uncertainty in trade, although the situation seemed to ease by the end of April.
Thai imports and exports in the first quarter of 2024 showed a decline in certain products such as automobiles & equipment, rice, and rubber products. However, other items like canned seafood and computers continue to expand. The import of crude oil and natural gas from the Middle East remains high in demand and value.
The Ministry of Commerce has negotiated with shipping companies to adjust freight charges based on increased costs and implement stepwise increases to help exporters manage costs better. Additionally, negotiations about ‘Free Time’ at ports aim to balance container management.
Despite the potential prolongation of conflicts between Israel, Hamas, and Iran, it is expected not to severely impact the global economy in the long term. The International Monetary Fund projects a 3.2% global economic growth for 2024, indicating a stable recovery. Monitoring the situation and preparedness in management remain critical ongoing tasks. (NNT)
