Embattled Hong Kong cuts charges
Having lost its premier position as the worlds leading container terminal to Singapore, Hong Kong now finds its position as Chinas number one port also under threat from domestic rivals. As a result, plans have been announced to cut vessel charges by 5.3% to US$7.33 for every 100 tons of goods carried. Vessels at anchor will also be paying less in future.
According to a local survey, Hong Kong’s share of traffic emanating from southern China fell continuously from 1996 to 2003. This decline may well be halted if the reduced charges can persuade some shippers to tranship containers at Hong Kong which would have previously been placed on direct services out of other southern Chinese ports.
Hong Kong reported throughput of 10.75m TEUs for the first two quarters of 2005, which was just 1.3% up on the corresponding 2004 period when the rate of growth was also much faster.
In contrast, Singapore reported first-half growth of 11.5% to 11.37m TEUs.
In order for the charges to be effective Hong Kong may well have to find ways of reducing road haulage costs in China which currently make it US$333 cheaper to ship a container via Shenzhen than via Hong Kong.
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