Summary
A well attended webinar which attracted more than 70 live connections, with a continuous flow of excellent questions, comments & feedback from participants.
The key focus was on what is Hong Kong doing to stay relevant in the changing logistics landscape in Hong Kong & around the South China Provinces – also know as the Greater Bay Area (GBA).
Benjamin Wong – key highlights are summarised as follows:-
Opening message – “we do have some challenges to overcome, but we consider these are temporary”
1. The Challenges for Hong Kong
– There are some concerns at how soon demand will pick-up after the pandemic?
– Some temporary challenges to overcome
– 3rd run-way expansion, connectivity & infrastructure, customs clearance/documentation, type of cargo
– Full activation of Asean-HK FTA
– Collaboration programs & timings with all partners in GBA
– Time to ramp-up use of new technologies.
2. The Future for HK & Greater Bay Area partners
– Leverage on strong HK knowledge & hub legacy/experience.
– Good collaboration between GBA partners & technology sharing.
– Improve road transportation & connectivity across GBA network.
– HK strategic positioning by type of cargo, by logistics players & high standard of fulfilment performance.
– Deployment of digital technology with advanced applications.
Closing message – “we are very confident of Hong Kong’s future role as a continued regional Hub”
Michael Zankel & Alex Koo – key highlights are summarised as follows:-
Opening messages – “the pandemic is not over yet & we need to see how things shape up after re-opening”.
1. The Challenges for Chevalier freight express – Alex Koo
– US-China Trade conflict has greatly reduced channel demand.
– Shippers seem to have moved to other Asia countries.
– HK social unrest has caused a big disruption in flows.
– Adjusting to big growth in e-commerce – PPE, test kits – pandemic impact.
– Financial stress to pay for higherb freight costs.
2.The Challenges for Gebruder Weiss – Michael Zankel
– Market created vulnerabilities by stretching limits – maybe not necessary.
– The high urgency expectations seems to have disappeared – was everything so urgent ?
– Capacity re-adjustment – demand down >20%
– High level of idle capacity – need to re-balance demand vs supply.
– Cost & pricing structures will be a major concern to re-adjust.
3. The Outlook from Logistics Service Providers
- Digitalisation is now firmly top of our list of actions
- Diversions from China to other Asia countries is likely to continue.
- Pricing strategies will need to be assessed with added value benefits.
- A fresh look at what is necessary & important to do.
- HK needs to address a new approach to agility & flexibility in business processes.
- There is room for experienced, specialist & high performing service providers to HK a key Hub.
Closing message –
– Michael “HK is in no danger past, present or future – China needs HK to thrive- don’t worry !”
– Alex “ Very confident in the facilities, trust & accumulated competence in HK as an air freight Hub”