Land Transport Federation has resolved to raise freight charges in stages, beginning with a 10% increase from April 1, saying operators can no longer absorb soaring fuel costs.
Thongyu Khongkhan, chairman of the Land Transport Federation of Thailand, said after a meeting with members to discuss measures for the transport sector following the fuel price increase that the federation had no choice but to adjust freight rates.
He said fuel accounts for 45–50% of total transport costs, making it the sector’s main cost burden. The increases will be introduced in steps across six to seven vehicle categories.
Thongyu said the first step would be a 10% increase in freight rates, followed by a second step of 15%, and a third step of 20–30%. He said every 1-baht rise in fuel prices increases logistics costs across the system by 3–5%.
The new freight rates will take effect across the transport system from April 1. However, he said the exact adjustments would depend on discussions between transport operators and clients under individual contracts.
He insisted the move was not intended to shift the burden onto the public, saying the step-by-step approach was designed to avoid imposing a sharp increase all at once. He added that the federation has its own cost-calculation system and would lower freight charges again if fuel prices fall.
