Trump tariff puts brakes on Port Authority’s 3-year revenue high

The Port Authority of Thailand (PAT) has reported record-breaking financial results for the third consecutive year, underscoring the resilience and growth of the country’s maritime trade sector. 

In fiscal year 2024, PAT achieved its highest-ever revenue at 17.224 billion baht, with net profit reaching an unprecedented 7.648 billion baht—the highest since the organisation’s founding.

In the first half of fiscal year 2025 (October 2024 – March 2025), PAT recorded a net profit of 3.5 billion baht. 

Vessel traffic at Bangkok Port and Laem Chabang Port totalled 7,371 ship calls, marking a 1.95% year-on-year increase. 

Cargo throughput rose 5.10% to 61.68 million tonnes, while container volumes climbed 5.35% to 5.56 million TEUs.

A key contributor to this growth has been the continued acceleration of export shipments. Laem Chabang Port, Thailand’s principal deep-sea facility, has seen monthly container volumes surge to 950,000 TEUs—up from a previous average of 600,000–700,000 TEUs—thanks to a rush in advance export orders placed by businesses anticipating tariff changes.

However, PAT is keeping a close watch on future trade flows following the announcement by US President Donald Trump of a new 36% tariff on Thai imports, set to take effect on August 1. 

The measure is expected to place pressure on Thailand’s export sector, which relies heavily on seaborne transport, and could potentially impact PAT’s revenues in the second half of the year—possibly ending its streak of record-breaking results.

Kriengkrai Chaisiriwongsuk, Director-General of PAT, noted that while the tariff announcement is a cause for concern, its immediate impact has yet to materialise. 

“So far, we’ve seen no negative signals from shipping lines. This is because international trade operations typically involve a 2–3 month lead time. The effects of the new tariff will likely become clearer by mid-August.”

He also explained that Thai exporters had anticipated the tariff change and front-loaded their orders accordingly. 

“Many companies have already secured orders through to the end of the year,” he said, helping maintain robust export volumes in the first half of 2025.

Kriengkrai further addressed speculation that logistics investors might shift their focus to ports in neighbouring countries with lower tariff exposure. He emphasised that this is unlikely due to the long-term and capital-intensive nature of port infrastructure development. 

“Port investments involve significant capital and long-term concessions. They are not easily moved.”

He also pointed out that other ASEAN countries face similar tariff regimes. “Indonesia, for example, is subject to a 32% US tariff, while Malaysia faces a 25% rate. These figures are comparable to Thailand’s, so we don’t see this as a major incentive for investors to relocate,” he said.

Despite the external headwinds, PAT remains cautiously optimistic and is working with relevant stakeholders to develop contingency plans and monitor export trends closely in the months ahead.