THE Pearl River Delta (PRD) supply chain system saved shippers much agony during the April dock strike against Hutchison International Terminals
HK's 'Dockers Spring': Shippers Council chief says PRD saved the day
THE Pearl River Delta (PRD) supply chain system saved shippers much agony during the April dock strike against Hutchison International Terminals, says Hong Kong Shippers Council chairman Willy Lin.
"Although there were disruptions and delays, cargo flow did not come to a stop. We have demonstrated to overseas buyers an advantage of ordering from PRD is that shipping alternatives are readily available," he said.
Port strikes elsewhere make shippers suffer severely, he said, writing in the council's journal, Shippers Today. "Cargoes are taken hostage. Seldom have shippers any choice other than passively wait. This port strike was moderated as exporters could export through Shenzhen," said Mr Lin.
Mr Lin told a story about import cargo going to Shenzhen and other PRD ports, to be barged back to Hong Kong to avoid the strike-bound HIT terminal.
Mulling long-term impact on the Port of Hong Kong, he said: "The last thing we want to see is the demise of Hong Kong as a port. Hong Kong still commands advantages that continue to attract cargo.
"The primary consideration for shippers is cost. The cost gap of shipping through Hong Kong and Shenzhen has narrowed due to RMB appreciation. If, as a consequence of the strike, costs increase, then the competitiveness of Hong Kong will be eroded," he said.
Whether shippers that switched routing to Shenzhen will use Hong Kong again depends on confidence and cost, said Mr Lin, owner of Milos, a textile manufacturer with factories in Hong Kong, the mainland and Thailand.
It is estimated that more than 70 per cent of PRD exports now go through Shenzhen. But this has stabilised in the last few years, Mr Lin said.
"If terminals, their contractors, and the workers demonstrate they could establish long-term arrangement and hence reliable services, shippers would resume using Hong Kong. If we have strikes, or even the threats of strikes, then the demise of Hong Kong would be unavoidable," said Mr Lin.