HK logistics chains cash in on rising consumer demand
Buoyed by rising consumer demand for imported products, Hong Kong logistics companies will leverage their operations on the Chinese mainland to increase import orders from overseas to the mainland.
Kerry EAS Logistics — the mainland subsidiary of Hong Kong-based Kerry Logistics Network — aims to link up with more mainland import business clients or foreign companies who need to export to the mainland through the ongoing China International Import Expo in Shanghai.
William Zhang Wei, director of Kerry EAS, told China Daily the company will strengthen its import sector, as the volume of exports is currently larger than that of imports.
The logistics company signed a memorandum of understanding at the expo on Thursday with the trading arm of Shanghai-based property developer Greenland Group on global supply chain logistics services.
Greenland Group is building a global commodity trading hub adjacent to the National Exhibition and Convention Center, where the expo is being held. Kerry EAS will provide a string of services covering air freight, shipping, storage and delivery to the hub.
In his keynote address at the expo’s opening ceremony on Monday, President Xi Jinping said China will expand the China (Shanghai) Pilot Free Trade Zone to include a new section, and will encourage and support bold and creative steps by Shanghai to advance investment and trade liberalization and facilitation.
Asked whether Hong Kong would lose its luster after Xi ordered the expansion of the Shanghai pilot FTZ, Zhang said Hong Kong still has its traditional advantage in trade as a free port and a window to the world.
“The city used to play the role of an entrepot, bringing goods from overseas to the mainland and vice-versa. It still has many trade and logistics talents and has continued to transform these years,” he said.
On the Sino-US trade standoff, Zhang noted that as Kerry EAS is focusing on connecting Asia with the US, the ongoing dispute is bound to have an impact on the company, especially in October and November.
He said they have seen a decline in the volume of goods exported to the US but, for their parent company Kerry Logistics Network, exporting goods from Southeast Asia to the US is becoming popular.
Danny Wong Kwok-keung, director of Hong Kong-based Cargo Freight Services, said, however, their recent air delivery orders from the Chinese mainland to the US had surged as US companies are trying to buy as much goods as they can before the 25-percent US tariffs go into effect early next year.
Kerry Logistics and Cargo Freight Services are among more than 160 business and professional groups from Hong Kong taking part in the expo.