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Logistics Industry
According to Hong Kong Airport
Authority's March 2003 figures, while passenger traffic dropped 14.4 per cent
year on year to 2.51 million, cargo volume surged 11.8 per cent to 237,000 tonnes.
As of end May 2003, the logistic industry has not seen major signs of negative
effects from the SARS crisis yet. In March, the industry was handling orders placed
in December last year and January this year, hence there was no impact on the
shipments. However, for April and May, the huge reduction in passenger flights
reduced cargo capacity for regional destinations and put cargo space at a premium,
and freighter services were unavailable to most cities especially in the mainland.
According to industry forecast business for the second half of the year would
start to show the lagging negative impact of SARS on the logistic industry as
traders and manufacturers suffered a huge lost of orders from March to May 2003.
SARS' Impact on Logistic Industry
- Since more than 50 per cent of export cargo is transported via the belly
of passenger flights out of Hong Kong, the cancellation of more than 30 per cent
of all passenger flights is affecting the normal operation of the industry. Some
international shipments were being delayed by a day at the Hong Kong International
Airport before being forwarded to mainland destinations and freight rates have
increase by more than 10 per cent on some routes.
- The original forecasted growth for this year was at least 12 per cent with
airfreight up 20 per cent and sea-freight increase 7 per cent, due to SARS, the
overall growth forecast was adjusted to 3-4 per cent.
- Additional costs in warehousing, insurance and hygiene compliance are incurred
due to the SARS outbreak. It could shave 5 to 10 per cent off the profit of freight
forwarders.
Positive Outcome of the SARS Crisis
- General awareness of cleanliness and hygiene factors has been raised.
- The operation of Hong Kong's logistic industry has demonstrated superiority
over competition in China, the overall forecast is optimistic and SARS' impact
is estimated a short term one.
Actions
- The industry's awareness on safety and health policies, cleanliness of warehouses
and trucks are raised and will continue to be maintained at a high level.
Last Modified Date : Tuesday, January 27, 2004 5:09:34 PM
Sources of information:
- Interview with Mr. Stephen Ip, Secretary General, Hong
Kong Logistics Association. 14 May 2003.
- South China Morning Post
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