MAINTENANCE OF GUARANTEE IN THE MARITIME TRANSPORT BUSINESS AND POLICY SUGGESTIONS FOR ENHANCING THE SECURITY OF MARITIME LOGISTICS AND THE MARITIME INDUSTRY IN THAILAND

Abstract

While the global community is emphasizing efforts to drive countries toward achieving the Sustainable Development Goals (SDGs), particularly in relation to industry under SDG 9, which primarily aims to promote sustainable industrial development, Thailand faces challenges in the administration and regulation of the carriage of goods by sea. Specifically, the Carriage of Goods by Sea Act, B.E. 2534, which applies to port-to-port transport, does not contain provisions requiring maritime entrepreneurs to maintain a guarantee for liabilities under the contract of carriage, unlike the law on multimodal transport. Moreover, other relevant statutes, such as the Thai Vessel Act, B.E. 2481, and the Maritime Promotion Act, B.E. 2521, likewise do not require maritime carriers to maintain such guarantees. As a result, service users, who are exporters and importers, face the risk of being unable to receive remedies in cases of contractual breach when the carrier encounters financial default or enters bankruptcy proceedings, as seen in the case of Hanjin Shipping Co., Ltd. in 2016 or other cases where a liner company faces problems arising from changes in the economy. This research aims to study the legal issues concerning the maintenance of guarantees in the maritime transport business. It also aims to provide policy recommendations to promote integrated administrative operations and improve communication among stakeholders, whether policymakers, regulators, operators, or facilitators, in order to enhance the security of maritime logistics and the maritime industry in Thailand.