Dear HAFFA Members,
Despite Hong Kong’s
return to economic growth, it still has some distance to go in reaching
pre-pandemic levels due to its external orientation and changing geopolitical
tensions. Goods exports remain subdued, indicating the economy is yet to fully
recover. Businesses face significant
challenges in their recovery efforts, including drastic turnover declines,
depleted reserves, high interest rates and manpower shortages. The road to a
fast comeback is daunting, and Hong Kong has a long way to go before fully
recovering. The Government, after consultations with HAFFA and other
stakeholders, announced the “Action Plan on Modern Logistics Development”
in last October, which aims to boost the city’s position as an international
premier logistics hub for aviation. “Action Plan on Maritime and Port
Development Strategy" in December 2023, which focuses on the
development of high-end maritime services. We welcome the Government's great
efforts made to consolidate the policies and measures so that Hong Kong can
continue to maintain its position as a leading international trade and
logistics hub.
In the 2024-25 Budget
recently delivered by the Financial Secretary Mr Paul Chan, the Association
also expressed its gratitude to the Government for adjustments made to
optimization of the scheme (we successfully fought for Members) “Pilot
Subsidy Scheme for Third-party Logistics Service Providers". In
line with HAFFA's recommendations, the government has increased the maximum
funding amount from one to two million dollars per enterprise, which will help
further support and promote development and competitiveness within the industry.
The Association has actively represented Members’ interests in government-level
consultations including the above consultations, as evidenced by our efforts in
this annual report, and sub-committee reports.
(1) Road to restore the
transhipment of cargo (land-air and sea-air) on re-exporting the e-cigarettes
products via Hong Kong – WE FOUGHT FOR MEMBERS SUCCESSFULLY!!
The Import and Export (Amendment) Bill 2023 was
successfully passed by the Legislative Council on 21 June 2023, marking a
milestone victory for HAFFA and underscoring its pivotal role in safeguarding
one of Hong Kong’s four pillar industries.
HAFFA showed unwavering commitment in protecting the Hong Kong industry.
We advocated for amendments to the Ordinance, communicated implications, and
provided viable solutions. HAFFA has been firmly in the driving seat on this
issue on behalf of the industry, and has taken a proactive stance to engage
with numerous government officials and Legislative Councillors since late 2021. After the publication of the Import and Export
(Amendment) Ordinance 2023 in the Gazette, e-cigarette products resumed
intermodal transshipment through Hong Kong on 30 June 2023. This was made
possible by the implementation of the “Alternative Smoking Product Transhipment
Control Scheme (ATCS)”. HAFFA played a key role in ensuring the successful
rollout of the scheme by providing technical guidance, supporting system
testing, and conducting real cargo trial runs in collaboration with the
Government. The ATCS, overseen by the Customs and Excise Department, enforces
strict regulations to prevent e-cigarette products from entering the local
market during transshipment. Subsequently, a briefing session on the ATCS was
organized by the Customs on 5 July 2023 with high participation rate from Members.
Considering the importance of preparing Members for the scheme, HAFFA
consolidated those questions raised at the briefing session, and compiled a
list of questions on ATCS to the Customs. The Customs provided official written
answers to these 40 FAQ questions, which were posted onto the HAFFA website
under dedicated webpage [Members’ Area] and disseminated to all Members via HAFFA News.
The successful execution of the first sea-air and
land-air ASP transshipments on 14 July and 15 August 2023, respectively, was a
significant breakthrough. In efforts to promote the ATCS, the Customs released
a promotional
video on
12 September, and later released a Putonghua version on 30 September 2023 in response to
HAFFA’s suggestion. These adaptations facilitate Mainland customers’
understanding of the scheme and enhance promotion to the shipping community of
the cargo source in Mainland.HAFFA’s remarkable contributions to the successful
rollout of the ATCS were acknowledged and celebrated. In recognition of our
role, HAFFA was awarded the “Elite Enterprise Partnership Distinguished
Award 2023” by the Commissioner for Customs and Excise, Ms. Louise Ho. This
prestigious award was presented to HAFFA during a ceremony held on 26 October
2023. It is worth noting that HAFFA is the first cargo logistics association
to be honored with this esteemed accolade by the Customs and Excise Department.
The Association deeply appreciates this recognition and considers it a great
honor!
The successful resumption of intermodal transshipment
of e-cigarette products, which HAFFA fought for on behalf of our Members, marks
a significant milestone and is a positive development. It is anticipated that
this achievement will pave the way for increased shipments being transhipped
through Hong Kong. (2) First-ever HAFFA
Pavilion at Asian Logistics, Maritime and Aviation Conference (ALMAC)[SUCCESSFULLY FOUGHT FOR MEMBERS] 10% discount
off the exhibition fee and to receive more Government subsidies
HAFFA hosted its inaugural pavilion at the
ALMAC, a prominent industry event held on 21-22 November 2023 at the Hong Kong
Convention & Exhibition Centre. We deeply appreciate the support of our Members
in making this milestone event possible.
Under the HAFFA Pavilion, 21 esteemed
corporations showcased their expertise, highlighting our growing influence as
an industry body. Thanks to HKTDC (Hong Kong Trade
Development Council), participating companies enjoyed an exclusive first-ever
10% discount on exhibition space and benefited from other Government subsidies.
This support attracted a significant number of SMEs, comprising 60% of the
participating companies, to exhibit with us. ALMAC provided a valuable platform
for local and overseas participants to witness the collective strength and
innovation of HAFFA Members in the logistics, maritime, and aviation sectors.
The event facilitated exploration of the latest trends and facilitated
networking opportunities with industry leaders.
(3) Striving to Continue the Cargo Fuel Surcharge Mechanism Regulated by the CAD HAFFA advocated on behalf of its Members, particularly on the issue of cargo fuel surcharges, which is a significant concern for Members and the whole industry. HAFFA has consistently communicated to the Government the necessity of extending CAD’s regulated cargo fuel surcharge. Failing to do so would lead to increased costs and significantly undermine Hong Kong’s competitiveness. Unfortunately, the recent response from the Government indicated a tendency to withdraw the mechanism. We are deeply regret and are disappointed by this stance! Nevertheless, HAFFA remains resolute and committed to relentlessly pursuing the interests of our Members.
(4) Strengthening Safe Carriage of Lithium Battery Shipments Together
Thanks to the enthusiastic support of Members, the subject seminar co-organized by HAFFA and airlines (Carrier Liaison Group/ CLG) was successfully held on 22 January 2024. The seminar saw a high attendance rate, with nearly 200 participants, including representatives from CAD (Civil Aviation Department), AAHK (Airport Authority Hong Kong), and 3 Cargo Terminal Operators.
During the seminar, industry experts emphasized the critical issue of lithium battery fire risks and the importance of prevention, detection, and enhanced screening protocols. Mr. Ryan Leung, HAFFA Executive Committee Member, shared practical insights on the implementation of enhanced screening and the potential use of AI technologies to ensure the safe transport of lithium batteries. The event concluded with my closing remarks to encourage industry experts, stakeholders, and authorities to comprehensively address these risks, to stay updated on regulations, guidelines, and best practices for safe lithium batteries transportation, and to uphold Hong Kong's position as the international premier logistics hub. For ease of reference, all presentation materials from the speakers have been uploaded onto the HAFFA Event Page and HAFFA Topical Webpage on Lithium Battery by Air.
Taking this opportunity, we would like
to highlight several other important events:
(I) HKIA Logistics Park
(HKIALP) in Dongguan
At the invitation of the AAHK, I led a large
delegation consisting of 70 Members to visit the HKIALP in Dongguan on 23
June 2023, thank you Members for your support! The study tour included a visit
to the Bestar Logistics Centre, where the pilot scheme of HKIALP is
operational. This visit provided a good opportunity for us to gain insights
into the latest developments of the intermodal cargo transshipment initiative.
(II) Forged ever closer relationship with Beijing,
Shanghai and GBA cities
Beijing: On 13 September
2023, HAFFA met with China International Freight Forwarders Association CIFA中國國際貨運代理協會(from
Beijing representing China)
at the 19th Sino Int’l Freight Forwarders Conference being held at Asia World
Expo. During the meeting, we engaged in discussions regarding the development
of the freight industry in Mainland China, Hong Kong and ASEAN countries so as to
enhance collaboration between HAFFA and CIFA, aiming to strengthen ties and
promote commercial opportunities.
Shanghai: HKTDC invited HAFFA
to deliver a keynote speech on “Megatrends on Trade and Supply Chains” at the “ALMAC
Satellite Conference - A New Chapter of Hong Kong-Shanghai Collaboration” in
Shanghai on 7 July, 2023. The Financial Secretary Mr. Paul Chan, also spoke at
the opening ceremony, emphasizing the potential for cooperation between Hong
Kong and Shanghai to enhance cargo delivery efficiency.
GBA
cities:
President Xi stressed that Hong Kong has a key role to play in the success of
the GBA. Under the 14th Five-Year Plan,
our pillar sectors, especially as international aviation hub and maritime
centre, will help create new areas of development. The revival of the Mainland’s economy will
give a strong boost to Hong Kong as our borders are fully opened and businesses
are keen to grasp opportunities from the Mainland’s “internal circulation”
strategy. As such, HAFFA was invited to the “Building A New Economic-Trade
Corridor via the Hong Kong-Zhuhai-Macao Bridge Together Conference 共建港珠澳大橋經貿新通道大會”
in Zhuhai 27-28 June 2023. The conference brought together government and
private sector delegates from various regions, including Hong Kong, the GBA,
and other provinces. The focus was on maximizing the utilization of the Hong
Kong-Zhuhai-Macao Bridge (HZMB) and enhancing logistics collaboration among the
cities. Moreover, HAFFA was invited
by the Transport Department to visit the HZMB Macao Cross-Border Cargo Transfer
Terminal (港珠澳大橋澳門跨境貨物轉運站) on 7 August 2023. The terminal,
located at HZMB Macao Port, commenced operations on 8 August, 2023. It
facilitates cross-boundary logistics transfer, allowing Hong Kong trucks to
transport goods to the terminal and vice versa. Additionally, Macao trucks can
transport goods to logistics facilities at Hong Kong airport using the HZMB.
Notably, Hong Kong trucks using the HZMB to reach the terminal are exempt from
Macao business tax registration and vehicle circulation taxes, while Hong Kong
drivers do not require a Macao driving license. HAFFA shared its
observations and insights on the facility with Members via HAFFA News on 8 August
2023.
We trust that our Members will maintain close
communications with carriers and shippers, staying updated on the market
through HAFFA News and other sources. By supporting one another and sharing
insights, we can protect businesses and jobs. Let’s work together to innovate,
strive, and unite in our goal to strengthen the economy and regain Hong Kong’s
position as a competitive business and logistics hub.
Last but not least, HAFFA has presented its views to
authorities and fostered closer relationships with Legislative Council, TLB,
CAD, AAHK, HKTDC, the Customs, Police, AVSECO, HKPC, HKSC, IATA, FIATA, and
FAPAA. We aim to continue working together in UNITY to prevent, mitigate, and
resolve issues, maintaining trust with the government, shippers, carriers,
CTOs, and all stakeholders. Together, we can contribute to the sustained
development of the international freight forwarding industry in Hong Kong, the
Asia Pacific region, and beyond. We express our pride and appreciation for the
strong support received from HAFFA Members, Committee Members, secretariat
staff, and our Government and industry partners.
Yours truly,
Gary Lau
Chairman
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