USA is Thailand’s second-largest trading partner and its top export destination. Given this strong global partnership, efficient shipping between these two regions is crucial for logistics and supply chain professionals. This article explores the key factors that influence shipping efficiency. By understanding these elements, businesses can enhance their shipping strategies and ensure smooth, cost-effective trade between Thailand and the USA.
Trade Partnership
USA continues to be Thailand’s second-largest trading partner, with trade volume of $68.4 billion by the end of 2023, marking a 4.72% rise from the previous year. USA stands as Thailand’s top export destination, contributing $48.8 billion, which represents 17.2% of Thailand’s total exports. The major exports from Thailand to USA are manufactured products.
Considerations when Shipping from Thailand to USA
Navigating shipping from Thailand to USA requires careful consideration:
Location
Thailand is a kingdom consisting of 77 provinces, making port proximity a crucial consideration when shipping from Thailand. The key seaports and airports are strategically located across the country, ensuring efficient connectivity for both domestic and international logistics. Major seaports include Laem Chabang and the Port of Bangkok. For airports, Suvarnabhumi Airport in Bangkok is the main international gateway, handling a significant volume of cargo and passenger traffic.
Commodity
Consider the nature of your cargo – it heavily influences your choice between air and ocean freight when shipping to from Thailand to USA. High-value items are more likely to require air freight services, while lower-value goods are better suited for ocean freight. When shipping from Thailand to USA, air freight is commonly used for electronics and electrical appliances. For ocean freight, automotive parts, rubber products, and textiles are the common commodities being shipped.
Time
The time sensitivity of your cargo is a crucial factor in choosing the appropriate mode of transportation. Air freight ensures rapid delivery, usually within 3 to 4 days under normal conditions. Conversely, if your shipment is not urgent ocean freight provides a more cost-effective option, with transit times between 28 and 51 days, depending on the carrier and schedule. However, factors such as port congestion, manpower shortages, and equipment availability can also impact the transit time of your shipment.
Cost
Understanding the cost differences between air and ocean freight is crucial when shipping to Thailand. The cost of freight is influenced by both the nature of your cargo and the urgency of delivery. Air freight, while more expensive, is ideal for urgent or high-value shipments. In contrast, ocean freight provides a more cost-effective option for less time-sensitive cargo. 
Although shipping via air is typically 12-15 times more expensive than shipping via ocean, this can fluctuate with market conditions. For example, in the second quarter of 2024, the air-to-ocean cost gap narrowed to just six times higher due to port congestion in Asia and the ripple effects of the Red Sea crisis. Staying informed about market trends and consulting with your freight forwarder is essential for understanding the current situation. Learn more on how to reduce air freight costs from our eBook: How to Reduce International Air Freight Costs
Supply Chain Risk
Security and efficiency are paramount in global supply chains. Certifications like the Authorized Economic Operator (AEO) in Thailand ensure safe and secure global trade by confirming that a business’s supply chain practices and customs control procedures meet high standards. In the US, the equivalent certification is the Customs-Trade Partnership Against Terrorism (C-TPAT), developed by U.S. Customs and Border Protection (CB P). This certification aims to strengthen border security and supply chain flow. C-TPAT-certified businesses benefit from smoother customs procedures due to their cooperative relationship with Customs.
For successful shipments from Thailand to the US, partner with a freight forwarder like Dimerco, which holds both AEO certification in Thailand and C-TPAT certification in the US.
US Customs and Border Protection Filing
For shipments entering the US, your freight forwarder must help you prepare two important filings:
| FOR AIR AND OCEAN FREIGHT: Automated Manifest System (AMS) |
FOR OCEAN FREIGHT ONLY: Import Security Filing (ISF) |
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Monsoon Season
The monsoon season in Thailand, which brings heavy rainfall, lasts from the end of May to October. During this time, it’s important to strengthen the packaging of your cargo when shipping from Thailand to USA, especially for high-value and sensitive items. Good packaging can protect your shipments from water damage, ensuring they arrive in great condition. Consider using waterproof wrapping, sturdy outer layers, and secure sealing to keep your goods safe during transit. Taking these precautions is essential for maintaining the integrity and safety of your cargo in the challenging weather conditions of the monsoon season. This is one of the key points covered in our eBook: Streamlining Global Logistics for Electronics Products.
Overcoming Shipping Challenges
Thailand, like many developing nations, faces logistical hurdles when shipping goods to the US, particularly during peak seasons. Space constraints become a significant issue, leading to increased competition for the limited space.
Navigating these challenges requires flexibility in route planning. For example, when utilizing air freight, it is crucial to partner with a freight forwarder with a global presence that can secure space in various locations with more options for direct flights to USA, such as Singapore. Dimerco is a prime example of such a forwarder, with offices in both Thailand and Singapore. When securing space from Thailand to the US proves difficult, Dimerco Thailand can ship cargo to Singapore, where Dimerco’s Singapore team can arrange direct flights to USA. This strategy provides additional safety and agility for customers, ensuring reliable and efficient shipping solutions.
Shipping from Thailand to USA
As Thailand and USA maintain their pivotal roles in global trade, understanding the nuances of shipping between these regions is essential. By considering the key logistics factors summarized in this article, businesses can streamline their shipping processes, manage costs effectively, and ensure seamless transit.
Are you looking for a trusted partner to improve shipping services from Thailand to USA? Contact Dimerco today to start a discussion.