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Cross-border (overland) transport can provide customers with some advantages over seaborne transport, according to a top executive from a consulting company. In cross-border transport, for example, he said that shipments can reach destinations in shorter periods of time and avoid port congestion, although freight rates are higher. Atsushi Bando from ATTS Consulting, gave a presentation at an online logistics seminar held on Oct. 7 by Japan International Freight Forwarders Association (JIFFA), focusing on cross-border transport between Myanmar and Thailand as well as up-to-date logistics affairs in Myanmar. In his presentation, he unveiled findings from a trial transport project carried out in February.
When shipments are moved at sea between Myanmar and Thailand, they travel a long distance of some 3,500 kilometers, as they must take a roundabout route along the Malay Peninsula. On a door-to-door basis, it takes as many as 14 days to carry them from Yangon to Laem Chabang. When shipments are transported overland, on the other hand, they only travel 900 kilometers, consuming four to five days.
There are two types of cross-border transport between Myanmar and Thailand. In one, shipments are transshipped between Myanmar and Thai trucks, while in the other, they are not. There are, however, several rules for the latter. Drivers must, for example, make declarations for themselves and trucks whenever crossing the national boarder, although they do not have to when shipments are transshipped. In addition, drivers are required to have visas.
When shipments are traded without transshipment, however, they can only be moved on limited routes and to limited destinations. This way, as such, advantages of shorter transit times and lower freight rates can only be gained limitedly. Also, customers must know in advance that there are more strict regulations in Myanmar than in Thailand. In cross-border transport, freight rates are higher by some $700 per FEU than maritime transport, regardless of whether shipments are transshipped or not.
Bando said in his presentation that freight rate standards could change when there are more shipments handled between the economies in the future. He also pointed out that it is, therefore, necessary to work together with local logistics service providers to develop and improve services.
