Hong Kong's air freight volumes soften due to US-China trade row
THE latest DHL Hong Kong Air Trade Leading Index shows that the trade war between the US and China is having a negative effect on Hong Kong's air imports and exports
THE latest DHL Hong Kong Air Trade Leading Index shows that the trade war between the US and China is having a negative effect on Hong Kong's air imports and exports.
Commissioned by DHL Express (Hong Kong), the quarterly report is prepared by the Hong Kong Productivity Council. It surveys 600 Hong Kong companies engaged in inbound or outbound trading via air freight.
The current survey was held before the G20 summit in Osaka, and after the US introduced 25 per cent tariffs on US$200 billion worth of mainland China goods. Against this backdrop, the report describes the overall air trade outlook for the third quarter of 2019 as 'muted', reported London's Air Cargo News.
It sums up: 'The market is taking a cautious, conservative approach as traders wait for the outcome of negotiations between the US and China.'
Of the 36 per cent of respondents who believe extra tariffs will impact their business, 51 per cent said the cost would be shared between sellers and buyers, while 46 per cent said buyers would bear the entire burden.
Demand is slackening across all markets and both imports and exports have slowed, although import demand from other Asia Pacific nations, including Japan, is more resilient.
The biggest drop occurred in the watches, clocks and jewellery segment. On the other hand, respondents 'remain optimistic' about prospects for the gifts, toys and houseware segment.
Exports of electronic products and parts fell slightly on the back of softening demand in the Americas and Asia Pacific.