Editorial: Hong Kong’s Shipping Industry Must Boost Transformation – 20240422 – English – Daily Ming Pao

For a prolonged period of time, Hong Kong’s container terminals were ranked first in the world in terms of throughput. As Reform and Opening Up on the mainland has continued to deepen and its port logistics boomed, Hong Kong’s role as a shipping hub in the Pearl River Delta also changed. In 2004, Hong Kong became the world’s number one container port for the last time with a throughput of 21.98 million TEUs (twenty-foot equivalent units) of containers. Its ranking has gradually declined since then. Hong Kong fell to ninth place last year, behind Shenzhen and Guangzhou. The Census and Statistics Department announced last month that for 2023 as a whole, the port of Hong Kong handled 14.4 million TEUs of containers, representing a 13.7% decrease over a year earlier and a new low in recent years. According to the estimate of Lloyd’s List, an international media delivering shipping news, Hong Kong’s port container throughput was ranked tenth last year, meaning that it still managed to occupy a top-ten spot. However, according to the latest statistics published yesterday by Alphaliner, an international research organisation of the shipping industry, Hong Kong fell out of the world’s top ten for the first time since records began.

Shipping costs in Hong Kong are high, and its ports are much less automised than those on the mainland. People in the shipping industry say that many shippers now prefer to ship goods directly to the mainland rather than via Hong Kong. The three major global shipping alliances’ significant adjustment of their routes might also have a detrimental impact on Hong Kong’s shipping industry. According to the people in the industry, Maersk and Hapag-Lloyd, two major container shipping companies, have chosen Yantian, Shenzhen as one of the ports for export to Europe and the US. As a result, some of the throughput originally handled in Hong Kong might be transferred to Yantian. Orient Overseas has also disclosed recently that Ocean Alliance, of which it is a member, targets to improve on punctuality this year, therefore some shipping lines will skip Hong Kong. However, these adverse changes may indeed motivate Hong Kong’s shipping industry to accelerate upgrading and transformation.

China is now a major shipping and shipbuilding nation. As a new shipping ecological chain is taking shape, this is undoubtedly a golden opportunity for Hong Kong. The Action Plan on Maritime and Port Development Strategy released by the Transport and Logistics Bureau at the end of last year also mentioned the development of high value-added maritime services, as well as the enhancement of Hong Kong’s competitiveness through the construction of green and smart ports. Of course, no matter how ambitious the action plan is, it will simply be an empty talk if not put into practice. The government must strengthen the status and functions of the Hong Kong Maritime and Port Board. It must actively study specific measures, support the development of port business and promote the upgrading and transformation of terminal operators. At the same time, it must communicate more with other cities in the Greater Bay Area to promote complementary advantages and win-win cooperation among ports in the region.

Ming Pao Editorial 2024.04.19: Port container throughput falls out of the top ten shipping industries must accelerate upgrading and transformation

The latest statistics released by international shipping research institutions show that Hong Kong’s port container throughput last year fell out of the top ten in the world for the first time. Over the past decade or so, Hong Kong’s shipping industry has faced fierce competition, with cargo throughput declining. In recent years, the decline has been further exacerbated by factors such as the Sino-US trade war and geopolitics.

There was a time when Hong Kong’s container terminals ranked first in the world in terms of throughput. As the mainland’s reform and opening up continues to deepen and port logistics develops vigorously, Hong Kong’s role as a central shipping port in the Pearl River Delta has also changed. In 2004, Hong Kong became the world’s number one container port for the last time with a throughput of 21.98 million standard containers. Since then, its ranking has gradually declined, falling to ninth place last year, behind Shenzhen and Guangzhou. The Census and Statistics Department announced last month that port container throughput in 2023 would be 14.4 million TEUs, a 13.7% decrease from the previous year, setting a new low in recent years. According to the estimates of Lloyd’s list, an international shipping industry media, Hong Kong’s port container throughput ranked 10th last year, and it can still maintain the “top ten”. However, according to the latest statistics released by Alphaliner, an international shipping industry research organization yesterday, Hong Kong’s latest ranking has fallen. It is the first time since records began to appear in the top ten.

Shipping costs in Hong Kong are high, and the level of port automation is far less than that on the mainland. The industry pointed out that many shippers prefer to ship goods directly to the mainland rather than transship through Hong Kong. In addition, the three major global shipping alliances have previously significantly adjusted their routes, which may also have an adverse impact on the Hong Kong shipping industry. According to the industry, the two major container shipping companies Maersk and Hapag-Lloyd have chosen Shenzhen Yantian as one of the ports for export to Europe and the United States. Some of the throughput originally handled in Hong Kong may be transferred to salt fields. Orient Overseas also recently revealed that its Ocean Alliance has the primary goal of improving flight punctuality this year, and some routes will no longer call at Hong Kong. However, these adverse changes may actually be the driving force for Hong Kong’s shipping industry to accelerate its upgrading and transformation.

China is now a major shipping and shipbuilding country. A new shipping ecological chain is taking shape, which is undoubtedly a golden opportunity for Hong Kong. The “Marine Transport and Port Development Strategic Action Plan” released by the Transport and Logistics Bureau at the end of last year also mentioned the development of high value-added maritime services and the enhancement of competitiveness through the construction of green and smart ports. Of course, no matter how grand the content of the program is, if it is not put into practical action, it will be nothing more than words on paper. The government must strengthen the status and functions of the Maritime Port Bureau, actively study specific measures, support the development of port business, and promote the upgrading and transformation of terminal operators. At the same time, it must strengthen communication with other cities in the Greater Bay Area to promote complementary advantages and win-win cooperation among ports in the region. .

■ Glossary new words /

throughput : the amount of work that is done, or the number of people that are dealt with, in a particular period of time

detrimental : causing harm or damage

complementary : complementary things go well together, although they are usually different