Terminal Throughput Dropped For 5 Months Hong Kong Container Throughput May Drop 10% This Year?

- Jul 04, 2019-

Affected by trade between China and the United States, Hong Kong's exports continued to decline. As of May, Hong Kong's exports fell for seven months. At the same time, the throughput of container terminals in Hong Kong has also fallen for five months. In this regard, the relevant person in charge in Hong Kong said that the throughput of Hong Kong container terminals may have dropped 10% this year! With the drop in container terminal throughput, the days of Hong Kong logistics companies are getting more and more uncomfortable...

On July 1, Yahoo Finance quoted data released by the Hong Kong Maritime and Port Authority as showing that the throughput of container terminals in Hong Kong has fallen for five months.

 

In this regard, the Executive Director of the Hong Kong Shippers' Committee, Mr. He Liji, estimated that in the second half of the year, container throughput in Hong Kong also fell, and the annual throughput fell sharply. The better forecast was to maintain 18 million TEUs, which fell more than year-on-year. 8%, and if it is a little worse, the container throughput of the Hong Kong container terminal is likely to fall by more than 10% year-on-year.

 

The Chairman of the Hong Kong Productivity Council, Mr Lam said that the decline in throughput at the container terminals in Hong Kong is not the first day. In particular, the global supply chain has changed due to trade wars and e-commerce.

 

 

In addition, Lin Xuanwu also said that the downward trend of Hong Kong's exports will continue in the future, and the products are not manufactured in China and can be manufactured in Southeast Asian countries such as Vietnam and Cambodia.

 

The main reason: the goods shipped to the United States have been greatly reduced!

 

Then the question comes: Why is the throughput of container terminals in Hong Kong falling continuously and falling for five months? In this regard, analysts said that this is mainly due to the impact of trade between China and the United States, especially the reduction of goods shipped to the United States from the Chinese mainland.

 

 

According to specific data, from January to May, Hong Kong handled a total of 7.553 million TEUs, down 7.7% year-on-year. In the past year, Hong Kong's container throughput was 19.59 million TEUs.

 

In this regard, He Liji said that the main reason is that the volume of goods exported from South China to the United States has dropped significantly, while the price of raw materials for grocery goods has also declined recently, reflecting the downward trend in freight volume.

 

It is worth mentioning that in May, Hong Kong's exports fell for seven months. Since then, the value of Hong Kong's total exports and imports have fallen by 2.5% and 3.8% respectively in the first five months of this year. The visible trade deficit was 188.8 billion yuan, equivalent to 10.6% of the value of goods imported.

 

However, he also said that the human resources of other countries may not be as rich as China, and it is difficult for the United States to find a country that can completely replace Chinese production.

 

 

30% of logistics companies are on the verge of bankruptcy?

 

As mentioned above, Hong Kong's exports have continued to decline, and the terminal throughput has also fallen for five months. This is a “bad news” for logistics companies!

 

In this regard, Hu Baizhen, chairman of the Hong Kong Freight Forwarding Association, said that affected by the Sino-US trade war, it is estimated that 20 to 30% of logistics companies are on the verge of bankruptcy.

 

Hu Baizhen said that logistics companies are currently operating hard, but they have been operating for many years. There are still reserves to deal with the crisis and will not close down in real time. However, there are still some large-scale companies that have closed their branches in Hong Kong.

 

In addition, some analysts said that in the short term, Hong Kong's export prospects are quite uncertain, and it is necessary to look at the latest developments in Sino-US trade in the future.