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Thailand floods continue to disrupt express operations and supply chains

Floods disrupt deliveries in Thailand

Express operators are continuing to face pick-up and delivery restrictions and suspensions inBangkok and parts of central and northern Thailand, as severe flooding continued and in some places

worsened over the last few days, resulting in disruptions to the supply chains of a number ofglobal companies.

Several key industrial estates in Ayutthaya, Nonthaburi and Pathumthani provinces borderingBangkok have become inaccessible, contributing to global supply chain disruptions to severalautomotive and hi-tech manufacturers, including Toyota, Honda, Fujitsu, Canon and Lenova.

A spokesman for FedEx told CEP-Research: “The floods in Thailand have resulted in the closure ofmany roads, making a number of locations inaccessible. As a result, we have suspended services toand from affected areas in Prathumthani, Nontaburi, Ayutthaya and Nakornpathom provinces, andcertain locations in Bangkok. Services remain available in other locations, although customers mayexpect service delays.”

He said that until normal operations resume, the company had contingency plans in place tominimise the service impact on customers. 

“It’s important to point out that on any given day around the world there can be weather eventsthat require us to implement contingency plans, so we have become, and are considered, experts incontingency planning to mitigate the effects of weather events on service to our customers.”

A UPS spokeswoman said: “We have some postal codes where pickup and delivery services arecurrently suspended and others where delays are expected due to traffic conditions caused by theflooding.” Provinces with suspensions for some postal codes include Bangkok, Ayuttaya, Lopburi,Nakornsawan, Nontaburi, Pathumthanee, Saraburi, Uthaithanee.

“Suvarnabhumi International Airport and sea ports are still operating as normal,” she added. “The shutdown of service at Don Muang Airport – with its domestic flight network – does not have anyimpact to UPS Thailand.”

She said it was difficult to pinpoint any specific effects on customers’ supply chains. “Abenefit of the UPS global network is the flexibility for us to work with them to shift moves fromother sourcing, manufacturing and assembly locations, both within Asia and around the world,” shesaid.

TNT said it had booking restrictions and suspensions in a number of flooded areas in and aroundBangkok, and it was closely monitoring the situation around Bangkok’s main airport, SuvarnabhumiInternational. Service had been suspended, for instance, around Ayutthaya, while some otherrestrictions apply to time-definite delivery services, such as its 9, 10 or 12 Expressproducts.

A TNT spokesman said: “Flood waters are now estimated to cover about 35-40% of the total Bangkokarea, and the governor has put the entire city on alert. The Bangkok International Airportcontinues to operate as normal, but water levels limit access roads and staff shortages are achallenge.”

He said TNT was still operating two depots in Bangkok, as well as its International Gatewayfacility, although the situation remained fluid. “We have put the depots on alert – we will closethem if required to protect the safety of our employees,” he added. “The main highway to the northand north-east of Thailand remains closed. We have informed our customers of booking restrictions,especially regarding time-definite services.”

DHL said delays were to be expected north and east of Bangkok, in Pathumthani, Thonburi andAyutthaya provinces. A spokeswoman added: “DHL has put in place business contingency plans and isworking closely with our customers and relevant government agencies to minimise any service impacton our customers due to the floods in and around Bangkok.”

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