CNI News
4 August, 2022
According to Myanmar highway cargo operators, highway freight operations have hit a snag due to scarcity of goods and low productivity.
“The rainy season is a time when goods are scarce, but this year has made it worse,” said the Chairman of the Association of Myanmar Highway Fright Transport Service Entrepreneurs, U Kyin Thein, to CNI news agency.
U Kyin Thein said, “Last year was a period of goods scarcity but this year’s record is even less than last year’s. Indeed, the goods are in short supply during the rainy season but it is in a shorter supply than the last year. Productivity decreased. Productivity decreases due to scarcity of raw materials. Merchants also have less business. We also face a business decline in transportation since merchant trade and productivity of goods decrease.
Moreover, the business owners said that the goods are becoming scarce due to changes in the export/import policy in the export/import industry.
A freight car carrying watermelons (AFP)
Due to the scarcity of these goods, the current highway freight businesses are at a standstill of up to 70 percent, said a highway goods entrepreneur.
He said, "Goods are scarce, both Export and Import are low. The scarcity of goods means less export and import. Another thing is that construction materials are also in a stagnant state, for example, cement pulling, stone pulling, and sand pulling. All those things are at a standstill. That is why car-related jobs are falling into a decline and about 70 percent are now facing a complete stagnation.”
At present, highway freight transport companies are facing a shortage of goods during the rainy season. However, when the in-season time comes, the abundance of crops certainly revives the productivity of businesses.
“However, there has been no relaxation of export/import policy restrictions and if the situation continues, the goods may continue to be scarce in the next open season” said
a freight forwarder to CNI news agency.
While loading cargo at a Thai-Myanmar border trade station (GETTY IMAGES)
He said, "Even if the open season comes, it will depend on the export and import situation. The business usually picks up in the open season.”
“Despite this year’s open season, the low supply of export and import will undoubtedly entail a scarcity of goods. I figured it would continue this way,” he said.
Highway freight operations currently include kitchen appliances, and fruits
We are only exporting goods that are parcel items. Goods such as beans, corn, sesame and rice which are not only crops but also exported goods are now reportedly in low supply.
In addition, a policy in some areas which stipulates electronic devices, wire chords, and oil must be transported only with a certificated of approval by the respective Minister of Lands, subsequently leads to a short supply goods and an economic decline due to this difficulty in transportation.
