Major carriers had begun reshuffling their routes ahead of the US-China tariff war, and while the full impact has yet to emerge, the transition may cloud the outlook for Hong Kong’s shipping industry, says Stephen Ng Tin-hoi, chairman and managing director of Wharf (0004).
Besides broader economic headwinds, Hong Kong’s shipping industry suffers from inherent disadvantages, with local ports losing ground to nearby Shenzhen and Nansha due to distance and cost, Ng said. The city has long leaned on its free port status, efficiency and zero tariffs to stay competitive, he added.
"While the US-China trade talks have progressed faster than expected, the tariff war has no clear winners," Ng said.
Although Hong Kong mainly handles short-haul intra-Asia routes and has limited direct exposure to US-bound shipments, a sharp decline in overall exports from the Greater Bay Area could still dilute cargo volumes and intensify competition, which would inevitably weigh on the city’s port operations, Ng said.
Turning to the local property market, Ng said sentiment in the ultra-luxury segment has improved alongside a rebound in shares and a pickup in initial public offerings activity.
As for mid-sized flats, he said performance would depend on location, supply and pricing.
STAFF REPORTER
