Today, global logistics industry is increasingly playing an important role to international trade and investment. Effective logistics systems enhance firm’s competitive advantage by reducing total costs and also increase service levels, so products can sell at competitive prices in global markets. Logistics services involve a complex web of activities designed to ensure the efficient flow of physical and information among players in global supply chain. The objective of this study is to explore current capacities of Thai logistics service providers (LSPs), including assessing their adaptability and responsiveness to global environment. In the literature review for this study, a problematic issue was discovered. The paper examines logistics sector in seven activities: 1.transportation; 2.storage and warehousing services; 3.express mails/parcels; 4.packaging; 5.custom [broker] clearances; 6.information technology for logistics, and; 7.freight forwarding companies. To achieve the objectives, survey research and in-depth interviews were conducted via 238 and 75 samplings respectively. Research processes were designed to ensure that validity and reliability were carefully maintained. Data collected was systematically edited and coded before processing and analysis by SPSS version 14. The result shows that within Thai LSPs have a degree of readiness and adaptability to service liberalization and dynamic global environment. Most of them lack understanding of logistics service liberalisation and its effects. Within each logistics activity, competitive capabilities were found to be at medium to low levels. Outdated national laws and regulations, as well as unstable political and economic situations, were found to be impeding the growth of the national logistics service industry. It also assesses the benefits and costs of liberalisation, and shows that LSPs have the most potential for adverse effects. On the other hand, liberalisation can offer logistics users (importers and exporters) greater capabilities for achieving better market responsiveness and cost reductions. The study points out problematic issues to growth within Thai logistics sectors, issues that are impeding international trade flow. It also provides recommendations on how to facilitate Thai LSPs to adapt and respond to the rapid changes of global environment.