By Jennifer Chang.    Photo：Jimmy Chan

The global trade tensions and the rise of trade protectionism policies have impacted Hong Kong Port's transshipment trade. Uncertainty and increased risks have led some businesses to reduce their usage of Hong Kong Port and seek more stable trade ports. The cost and efficiency issues of Hong Kong Port have also affected its competitiveness. As a developed region, Hong Kong faces relatively higher prices and labor costs, prompting shipping companies and logistics providers to prefer ports with lower costs and higher efficiency.

The current situation of Hong Kong Port losing its transshipment hub function and falling behind Shenzhen Port has raised concerns about the business environment in Hong Kong. According to the latest statistics, Hong Kong's port cargo throughput in the first seven months of this year dropped by nearly 16% annually, further declining its global ranking. This could have adverse effects on Hong Kong's economic development. Once ranked as the top port in the world for container throughput, Hong Kong has now been surpassed by Shenzhen's port. Hong Kong Port is facing intense competition from Shenzhen Port. As one of the primary cargo distribution hubs in the Pearl River Delta region, Shenzhen Port attracts numerous trade activities with its advantageous geographical location and efficient logistics network. In comparison, Hong Kong Port has limitations in terms of area and resources, making it unable to compete with Shenzhen Port on an equal footing.

Hong Kong Port's cargo throughput has been continuously declining in the global rankings over the past two years. The latest data released by the Hong Kong Maritime Department shows that in July this year, Hong Kong Port's container throughput decreased by 17.9% YoY to about 1.2 million TEUs. From January to July, container throughput dropped by 15.8% YoY to around 8.32 million TEUs. In contrast, data from China's Ministry of Transport indicates that Shenzhen Port, located in close proximity to Hong Kong in the Pearl River Delta, saw its container throughput increase by 7.6% YoY to 2.82 million TEUs in July. From January to July, Shenzhen Port's cumulative container throughput only decreased by 4% YoY to 16.35 million TEUs. According to publicly available information, after the full resumption of customs clearance between Hong Kong and China, the Hong Kong industry had hoped that customs clearance would drive Hong Kong's trade. However, the reality is that the throughput of Kwai Tsing Container Terminal in the first five months of this year not only showed no improvement but also dropped to 9th place in the global rankings, surpassed by several Chinese ports. In the context of the Pearl River Delta or South China region, terminals are engaged in a zero-sum game. When the overall cargo volume remains relatively constant and the source of goods is basically the same, if other mainland Chinese ports increase their cargo volume, Hong Kong will consequently experience a decrease. Overall, the declining container throughput of Hong Kong Port has raised concerns about its competitiveness and the impact on Hong Kong's trading activities.

For a long time, a significant portion of goods between Southeast Asia and mainland China have been transshipped through Hong Kong. As a result, Hong Kong Port has not been completely replaced by mainland ports like Shanghai and Shenzhen. However, the challenge lies in China signing "tariff-free agreements" with many Southeast Asian countries, posing competition for Hong Kong. The only hope for Hong Kong may be to join the Regional Comprehensive Economic Partnership (RCEP) to increase trade volume with Southeast Asia and stimulate its transshipment business.

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