Since 2016, HAFFA has
engaged in extensive negotiations with the government and successfully secured
the continuation of the CFS mechanism under Civil Aviation Department (CAD) for
an additional eight (8) years. Following our annual report last year, we have
consistently expressed our objections to the proposed liberalization of the
CFS.
Despite our exhaustive
efforts, including multiple negotiation rounds and written submissions, we are
deeply disappointed by the government’s announcement on 23 May 2024, which
confirmed the liberalization of the CFS effective 01 January 2025 — originally
set for 01 July 2024. We successfully fought for members and managed to secure
another six-month extension. HAFFA was the only trade association invited by
the government to provide expertise for this transition. To enhance transparency, CAD requires airlines
to publicly disclose their maximum CFS levels. CAD has collaborated with the
Airport Authority Hong Kong (AAHK) to launch the “Hong Kong International Airport Cargo Data
Platform” for this purpose.
However, sharing this information is currently not mandatory for airlines.
In subsequent regular meetings with the
government, HAFFA has strongly urged CAD to create a centralized master table
of airlines’ CFS levels for comparison. As a result, HAFFA has taken the
initiative to compile and publish the table under the association’s name. HAFFA
will provide all CFS updated information from CAD in a centralized master table
monthly and post it on the HAFFA website for members’ exclusive reference by the
end of each month.
Key Milestones and
Achievements
HAFFA had an impactful year marked by
strategic engagements and collaborations with international high-level organizations
that aim to strengthen ties between Hong Kong and the world.
(2) HAFFA becomes First
Hong Kong Association to Sign MoUs with the Ministry of Transport of the
Republic of Kazakhstan and KAZLOGISTICS, the Union of Transport and Logistics
Organizations and Associations. The partnerships aim to promote and enhance
the freight and logistics sector between Kazakhstan and Hong Kong. I signed
agreements with Mr. Maksat Kaliakparov, Vice Minister of Transport of
Kazakhstan, and Mr. Talgat Lessov, Acting General Director of KAZLOGISTICS,
during the HKTDC Hong Kong Logistics Services Mission to Kazakhstan from 5-11
August 2024. HAFFA is committed to improving logistics and transportation
coordination to boost cargo flow and develop multimodal transport corridors
between Europe and Asia. We look forward to exchanging information and
collaborating closely to achieve our shared goals of trade promotion,
problem-solving, consulting services, and organizing seminars and training
programs.
(3) In the 2024-2027 term, HAFFA had the
distinct honor to become the First Cargo Logistics Association from Hong Kong
appointed to the World Customs Organization (WCO) Regional Private Sector Group
– Asia Pacific (RPSG-AP), joining an esteemed group of 30 members. On 24
July 2024, I received the appointment certificate from the Commissioner of
Customs and Excise. The RPSG-AP acts as a bridge between customs authorities
and the private sector, promoting collaboration. It provides a platform for
members to consult, share best practices, address challenges, and develop
solutions for complex global issues. The group includes six working groups
focused on E-Commerce, Digitalization, Authorized Economic Operators (AEO)
& Mutual Recognition Agreements (MRA), Rules of Origin & Operational
Certification Procedures, Supply Chain Resilience, and the Harmonized System,
with HAFFA actively involved in the E-Commerce working group.
(4) HAFFA
has received the Elite Enterprise Partnership Award from the Hong Kong Customs
& Excise Department for the second consecutive year. I
am deeply honored to accept this award on behalf of HAFFA and its Members from
the Commissioner for Customs and Excise, Ms. Louise Ho in October 2024. This
recognition underscores our commitment to fostering cooperation and support in
Customs enforcement. We are dedicated to further enhancing our collaboration
with the Customs and Excise Department to elevate the logistics industry in
Hong Kong. First introduced in 2022, this award commends stakeholders in the
logistics and intellectual property sectors for their proactive contributions
to Customs. This year, HAFFA was recognized alongside 17 other organizations from
various sectors, including logistics, container and terminal companies, express
couriers, and trademark representatives.
(5) Building
on the success of our inaugural pavilion at ALMAC 2023, HAFFA again hosted a
pavilion at Hong Kong’s largest airfreight and maritime conference on November 18-19, 2024, at the Hong Kong Convention
& Exhibition Centre. The event featured approximately 80 prominent speakers
and over 2,000 participants from 30 countries and regions, showcasing 20
exhibition booths that highlighted our industry’s strengths. HAFFA secured a
10% discount for pavilion exhibitors through HKTDC, in collaboration with the
SME Export Marketing Fund, easing financial pressures for participants. With
SMEs representing over 60% of our exhibitors, this support was particularly beneficial.
HAFFA’s continued presence at ALMAC reinforces its position as a leading trade
association in the cargo industry.
(6) At the domestic
level, we had a highly productive logistics delegation to Chengdu, which
provided invaluable insights into the evolving logistics landscape in Mainland
China. From October 21 to 24, 2024, Vice Chairman Mr. Ryan Hsu and I led a
23-member delegation to Chengdu, supported by the Hong Kong Trade
Development Council (HKTDC). The visit provided first-hand insights into
one of the region's dynamic logistics hubs. Delegates toured key facilities,
including ChengDu International Railway Port成都國際鐵路港,
and observed the latest industry advancements, gaining valuable perspectives on
current trends in Mainland logistics. We also engaged in discussions with
senior government officials and leading freight logistics organizations in
Chengdu, laying the groundwork for potential cooperation and business
opportunities beneficial to both regions.
(7) HAFFA has announced the launch of the First Hong Kong Air Cargo
& Logistics Football Tournament 2024-2025, the largest sporting competition
ever organized amongst the HKSAR’s airport and logistics community and held in
celebration of the historic opening of the HKIA’s three-runway system. The
initiative has received strong support, with 6 government bodies joining hands,
3 big sponsors along with the air cargo and logistics community to stage the
industry-unifying event. The exciting tournament will take place over five
months, from November 2024 to April 2025.
HAFFA remains committed to
promoting business interests for its Members in a professional manner. By
maintaining close communications with carriers, shippers, terminal operators
and staying updated on market trends, HAFFA aims to support its Members in
navigating the evolving logistics landscape. We encourage Members to leverage
HAFFA News, Members’ login areas in our website and other resources for the
latest industry insights.
HAFFA will, as always,
continue to foster strong relationships with the Legislative Council, TLB, CAD,
AAHK, HKTDC, Customs, Police, AVSECO, HKPC, HKSC, WCO, IATA, FIATA, and FAPAA.
Through unity and collaboration, we strive to prevent, mitigate, and resolve
industry challenges, contributing to the sustained development of international
freight forwarding in Hong Kong, the Asia Pacific, and beyond.
We extend our heartfelt
appreciation to HAFFA Members, Committee Members, secretariat staff, and our
government and industry partners for their unwavering support. Together, we
continue to earnestly offer views on cargo policies/measures for the government
to proceed with enhancing our logistics system with a view to elevating Hong
Kong’s position as a competitive business and regional logistics hub.
Yours sincerely,
Gary Lau
Chairman