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Opinion | Time for Hong Kong logistics to shine amid supply chain woes
- As the neutral Hong Kong shipping flag becomes an increasingly attractive option amid Red Sea attacks, the city should grow its own logistics brand
- This would involve seamlessly linking up its maritime and air cargo sectors, and cultivating connections with belt and road countries such as Djibouti
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The geopolitics of the oceans has returned after decades of calm, with recent attacks in the Red Sea raising concerns about the safety of trade routes regionally and globally. As fractures grow in the global governance landscape and amid China’s economic transition, Hong Kong must capitalise on the opportunities presented, including in growing its logistics brand and services.
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This can help to ensure sustainable growth and development and boost Hong Kong’s role as a global facilitator.
The Red Sea attacks by Yemen’s Iran-backed Houthi militants, who support the Palestinian cause, have forced major shipping companies to divert or cancel their routes, affecting global supply chains.
Last month, the Houthis announced a “ban” on ships linked to Israel, the US and the UK in the Red Sea, Gulf of Aden and the Arabian Sea. The Financial Times has warned of potentially serious disruptions to the supply of cocoa, coffee and tea to the United Kingdom as shipping interruptions add to climate change pressures.
Against such a backdrop, Hong Kong’s Marine Department could promote the city’s shipping registry as an attractive option for vessels looking to sail under a neutral flag.
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US-led coalition strikes Iran-backed Houthi fighters in Yemen
US-led coalition strikes Iran-backed Houthi fighters in Yemen
Hong Kong has a mature maritime and ports industry, and aims to become a leading international maritime centre with a focus on sustainable development. According to UN data, Hong Kong is the world’s fifth largest ship-owning market with more than 2,500 vessels flying its flag, accounting for 2.4 per cent of the world fleet in number and 6.3 per cent in value.
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