Bangkok: SINO sees Thailand gaining an export advantage after the clarity in retaliatory tariffs with the United States, though the strong baht may present challenges.
According to Thai News Agency, SINO has assessed trends in the international freight industry, noting sustained demand. Despite the potential setback of a strengthening baht impacting competitiveness, SINO remains optimistic about the new Thai government’s potential to drive the economy forward by supporting local content. The corporation is poised to expand its air freight and warehouse operations amid the aviation industry’s recovery.
Mr. Nanmanat Wittayasakphan, CEO of Sino Logistics Corporation Public Company Limited (SINO), highlighted the mixed impacts on sea freight along the Thailand-US route in the first half of 2025 due to the uncertainty of US reciprocal tariff hikes. With the US imposing a 10% base tariff increase on surplus trading countries, imports surged initially, only to slow down as concerns grew over further tariff hikes effective from August. Nonetheless, the demand for sea freight is expected to remain robust for the rest of the year, partly due to Thailand’s lower tariff rate compared to Vietnam. Additionally, Thailand’s reliance on local raw materials provides a competitive edge.
The strengthening baht poses challenges for exports without forward exchange rate contracts, leading to financial losses. The currency’s appreciation places Thailand at a disadvantage compared to regional competitors like Vietnam. This situation might affect US confidence in Thai imports, necessitating a detailed product-by-product impact analysis. Despite these challenges, export figures remain strong.
The private sector expresses confidence in the new government’s economic policies, especially measures favoring local content, which could boost export capabilities due to Thailand’s rich raw material resources. While FTAs support exporters, there is a call for increased government support for SMEs to enhance export expansion.
Mr. Nanmanat also outlined SINO’s investment strategy for the latter half of the year, aiming to establish itself as a regional leader in integrated international freight services. This includes restructuring its revenue portfolio to increase the share of air freight and logistics support services.
SINO’s board has approved the acquisition of a 100% stake in A.S. Logistics Co., Ltd. by its subsidiary, SNC Cargo Services Co., Ltd. This 35 million baht investment is expected to enhance business potential and reduce air freight costs. SINO aims for significant revenue contributions from this acquisition, targeting over 200 million baht in revenue by 2026.
The company anticipates continued growth in the air cargo sector in 2025-2026, driven by the aviation industry’s recovery and increased international flights, which will enhance cargo capacity.