The decline of Hong Kong as a major port in the shipping industry has been evident over the past decade. Several shipping alliances, including Gemini Cooperation, THE Alliance, and Ocean Alliance, have removed Hong Kong from their routes due to factors such as China-U.S. tensions, Beijing’s erosion of Hong Kong’s special status, and the pursuit of economic efficiencies by shipping companies.
In particular, the new alliance between Maersk and Hapag-Lloyd, known as Gemini, does not include Hong Kong as a direct port. This shift in the shipping industry is seen as a sign of network consolidation, especially regarding transshipment hubs. The impact of this change is expected to have serious consequences for Hong Kong’s economy, given that the city’s trade and logistics industry is a significant contributor to its GDP and employment.
Data from the U.N. Conference on Trade and Development shows that Hong Kong’s shipping ports have been gradually declining compared to neighboring Chinese ports, with significantly lower connectivity than Singapore. This decline is reflected in the port throughput numbers, with Hong Kong falling to tenth place in 2023 after being surpassed by ports in Singapore and Shanghai.
The rise of other ports in the region, such as Shenzhen and Guangzhou, has further intensified the competition for Hong Kong’s shipping industry. Factors such as high port fees and the impact of U.S. tariffs on Chinese goods have also contributed to the challenges faced by Hong Kong’s port.
Overall, the restructuring of shipping alliances and the changing dynamics of the global shipping industry pose significant challenges for Hong Kong’s position as a major port in the region.
Irrespective of the outcome of the upcoming election, the prospects for Hong Kong’s trade industry appear bleak.
