By Nick Lung.    Photo：Torsten Dettlaff

Thailand used to be a large export base for various industries, especially in the fields of automobiles, agriculture, chemicals, and electronic products. However, due to the relationship between the epidemic and the Ukrainian-Russian War, international demand has encountered supply chain adjustment problems, which has given the Thai market room to play , It is also an opportunity for the recovery of Thailand's manufacturing industry, thereby driving the market's demand for logistics services and warehouse space.

On the one hand, the epidemic has promoted the development of short-term contracts for e-commerce and warehousing and logistics. With the gradual expansion of the scope of e-commerce synergy, business expansion has created demand, which has significantly boosted Thailand's supply chain and logistics industries. In view of Central Group, Big The steady growth in APP downloads of traditional retailers such as C and CP Group has brought more attention to Thailand's logistics market expansion.

On the other hand, due to the promotion of consumption-related policies, research data from Knight Frank (Thailand) showed that logistics demand began to pick up in the second half of last year. Major e-commerce and logistics companies in Thailand, including Central Group, Lazada, Shopee, Pomelo, DHL Express, Kerry Express and Aden have all established central warehouses and smaller pick-up points in different regions to cope with the growing market demand.

As the impact of the epidemic gradually subsides, the market performance of Thailand's logistics and warehousing industry continues to grow, mainly due to the market changes brought about by e-commerce and the strong market demand of the electronics and automotive industries after the country reopens, Thanapol Sirithanachai (National CEO of Frasers Property Thailand) believes that the market recovery in the post-epidemic era is driving domestic demand and exports in the electronics and automotive industries, thereby increasing the need for companies to expand factory space. FPT currently manages a plant area of approximately 1.17 million square meters (117 hectares) and a storage area of approximately 1.92 million square meters (192 hectares). The lease rates are 79% and 89% respectively, higher than the 76% and 86% in the same period last year.

The expansion of online retail business has also increased the demand for express delivery services for storage space. Storage space needs to be expanded to avoid the impact of supply chain disruptions. The rental demand for warehousing and logistics has also returned to the level of demand before the epidemic. The area of storage utilization soared to more than 186,000 square meters (18.6 hectares) in the second half of 2021, reaching the highest level before the outbreak, while the occupancy rate reached 85%, which is also a new high in ten years.

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