Equity Analysis /

Thai: Transport & Logistics - Key takeaways from BLS Transport & Logistics Days

  • Freight remains strong, while transportation is recovering

  • The worst has passed. BEM is definitively in recovery mode.

  • Investment opportunities tied to new transport-related infrastructure are lining up and BTS is ready!

Bualuang Securities
20 April 2022

We hosted the BLS Transportation & Logistics Days in early Apr. Both air and ground transport are recovering from COVID-19 effects and should normalize by 2024. Shipping (both container and dry bulk) looks set to remain strong for years ahead. And high freight rates and the resumption of international flights will sustain hefty profit growth among freight forwarders during 2022.

Freight remains strong, while transportation is recovering

Inland transport: COVID-19 is gradually turning from a pandemic into an endemic—but not particularly dangerous—disease. Travel activity is resuming. Once international travel restrictions are lifted, road and rail traffic should resume levels close to the pre-COVID era. The electricity price surge will have only a negligible impact on the costs of BEM and BTS.