How US-China trade war can inspire Hong Kong shipping to chart a new course
Most significantly, freight traffic on the transpacific route between Asia and the west coast of North America – in which Hong Kong is the most important entrepôt – is likely to suffer, as a result of falling demand for shipping services. Since the trade war began, shipping alliances such as 2M and THE have announced a reduction in transpacific services.
As China and the US account for a majority of Hong Kong’s imports and exports, a reduced number of sailings will place further downward pressure on port cargo throughput.
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Crisis, however, can come with opportunities. To counteract the detrimental effects of the trade war, the Hong Kong government and the industry may be forced to develop long-term strategies and measures to develop high value-added shipping services, such as ship registration and management, maritime insurance, and shipping arbitration and legal services.
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Therefore, the Hong Kong government and the shipping sector should strengthen cooperation and formulate a comprehensive industry development strategy to clarify its development goals, establish its position and implement feasible measures to embark on a long-term voyage in the dynamic international scene.
Edward Liu, co-opted member, Maritime and Port Development Committee, Hong Kong Maritime and Port Board