Mr. Kettivit Sittisoontornwong, Chief Executive Officer of LEO Global Logistics Public Company Limited (mai: LEO), informed Kaohoon that due to the closure of some checkpoints along the Thailand – Cambodia border, the company decided to immediately switch its main transportation route to shipping by ship and airplane.
Furthermore, LEO also added a new route that passes through Bavet checkpoint, located at the Cambodia – Vietnam border. The custom procedures there can be carried out conveniently like at the checkpoints along the Thailand – Cambodia border.
Mr. Kettivit stated that as a logistic service provider, LEO’s duty is to support the customer in transporting goods continually without the risk of property seizure or being affected by any situation. Furthermore, the company also used an opportunity from this dispute to develop and introduce new transportation routes to Thailand’s exporters.
In Cambodia, Logistics Intelligence (Cambodia) Co., Ltd. (LogiCam), LEO’s partner, is also assisting in documents matters and shipment in the destination country.
LEO also has proactive risk management, readying to inform customers immediately and providing alternative options if the checkpoint is closed. The customer can use air freight for urgent shipment, sea freight for non urgent shipment, or cross border transport through the Vietnam route for continuous operations with a slightly longer lead time.
Mr. Kettivit also adds that the shipment cost is getting higher due to the new routes. However, logistic cost only accounted for about 15% of product’s value, which is considered a small impact compared to unabling to sell goods. Therefore, most of the customers are welcoming this new burden to maintain the continuity in distribution. There may also be a negotiation with the consignee to help lessen the cost.
As for the current depreciation of Thai baht, the matter is considered to be in a normal cycle and would not post any material impact.
Finally, Mr. Kettivit stated that the current situation has a wide-range impact on every company. Still, LEO is capable of paying dividends continuously. Moreover, when the share price drops, the dividend yield increases. The long term investor would definitely see a value in this as prices of other major shares would drop as well. This is due to the overall global economic situation. When the economy recovers, so does the market.
