Nowadays, the global logistics service industry is playing an increasingly importantrole in international trade and investment. Effective logistics systems reduce totalcosts and also improve service levels, allowing products to be sold at competitiveprices on the global market. Many countries, such as Japan, Chile, and Australia, havenow requested the Thai government to liberalize logistics services, especially thefreight forwarding sector. However, a literature review reveals interesting issues relatedto logistics service liberalization in the freight forwarding sector. For example,countries have different ranges and definitions of logistics. Before the government canrespond to requests to liberalize logistics services, it needs to assess the capability level of Thai FFC, including examining readiness of Thai FFC for contributing tologistics liberalization.The objective of this research was to study the capability level of Thai LogisticsService Providers (LSP), including assessing their readiness and flexibility to trade inliberalized services between Thailand and her trading partners. To examine the aboveissues, survey research was conducted with 53, and in-depth interviews wereconducted with 19 respondents, respectively. Data collected was systematically editedand coded before processing and analyzing by SPSS version 11.05. The results showthat Thai FFCs have a low degree of readiness and flexibility to meet liberalization oflogistics service. Most of them still lack understanding of the potential effects ofopening logistics services liberalization talks. Their competitive capabilities are ratherat medium to low levels. Existing problems are, for example, out-of-date national lawsand regulations, and unstable political and economic situations which impede growthof the national logistics service industry.According to the assessment of potential benefits and their impact with theintroduction of liberalization, FFCs in the small and medium sectors would mostlyexperience potentially adverse effects. On the other hand, logistics users will receivethe highest benefits from higher responsiveness and decreased costs. This paper alsoprovides recommendations on how to facilitate Thai FFCs to adjust and make rapidresponse to changes in the event logistics are liberalized.