DHL– Analysis of Transit / Trans-shipment Regulation in Thailand

The Deal

Efficient solutions and options that minimize transportation costs to the company

  • DHL Thailand’s Global Freight Forwarding division expressed concern that they are not allowed by Thai Customs to transport LTL shipments in transit under bond through Thailand.
  • Only FTL shipments can be allowed, under bond.
  • Regulations by Thai Customs significantly impact the efficiency of the division’s ability to manage shipments and it leads to increased shipment costs to the company.
  • With full compliance of all Thai government regulations, DHL management wanted to understand whether it was possible to transport multi-consignment transit shipments through Thailand to their multiple destinations, without having to clear the goods at the point of entry.
  • Tractus were asked to assist DHL management to better understand the source of these regulations and to determine whether there was any compliant method to operate more efficiently within the current regulations.

Tractus’ Solution

Support and investigate regulations with primary and secondary resources that we have in our network

  • Tractus determined whether the current operational impediments are a regulatory issue or only incorrect application of the existing regulation.
  • Thai local team tried to understand the status and how Thailand is planning on implementing the recent amendment to its Customs law to accommodate ASEAN agreement on goods in transit.
  • Tractus provided transit regulation research and analysis as well as mystery shopping on other competitors’ operation processes on goods in transit and trans-shipments.
  • Tractus summarized and concluded our findings to deliver recommendations to DHL for their next steps.

Result

Redirected launch from USA to Asia and Europe

    • Tractus found out that the best solution and cost efficient method for DHL to solve their transit/ trans-shipment issues was to utilize the airport Free Zone-Zone 3 as their hub.
    • DHL should immediately begin to advocate for inclusion into the pilot program and engage Airport of Thailand (AOT) to formally launch Zone 3
    • DHL should consult with ADB on how to accelerate the ratification and implementation of ASEAN agreements that will favor DHL to operate cross boarder activities.

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