Hong Kong Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Hong Kong Freight and Logistics Market is segmented by Function (Freight Transport Type [Air, Shipping and Inland Water, Road, and Rail], Freight Forwarding, Warehousing, Value-added Services, and Other Functions) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade [Wholesale and Retail], and Other End Users). The report offers the market size and forecasts in values (USD billion) for all the above segments.

Market Snapshot

Hong Kong Freight Logistics Market Size
Study Period: 2017-2027
Base Year: 2021
CAGR: 5 %

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Market Overview

The Hong Kong freight and logistics market is anticipated to register a CAGR of about 5% during the forecast period (2022-2027).

The outbreak of COVID-19 has severely impacted the logistics services between the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) and neighboring Shenzen on the mainland as a large number of drivers fell sick or are in quarantine. This has greatly affected the business as companies are not able to dispatch drivers even though the trucks are available. It is hard to hire drivers in Hong Kong despite offering a good salary. Most drivers are between 50 to 60 years old. Young people are not interested in this work.

There is an emergence of new technologies, companies, customers, and new business models in the industry. Freight companies are increasingly focusing on digitization to improve efficiency, which is reshaping the marketplace. Increasing preference for third-party logistics by various industries may promote the growth of the industry in the near to medium-term future.

The limited presence of an integrated IT system, fragmented warehousing, infrastructure handling capacity, and multiple regulations are challenging the growth of the freight sector in Hong Kong. Improving digitization and increasing adoption of the Internet of Things by various industries are driving the freight transportation market. The freight transportation sector contributes a significant portion of the overall employment in the country, and with growing government support for the sector, employment in the sector is forecast to rise exponentially.

Scope of the Report

The Hong Kong frieght and logistics market is segmented by function and end user. By function, the market is segmented into freight transportation (road, shipping, rail, and air), freight forwarding, warehousing, and value-added services. By end user, the market is segmented into manufacturing and automotive, oil and gas, mining and quarrying, agriculture, fishing and forestry, construction, distributive trade (wholesale and retail), healthcare and pharmaceutical,s and other end users. The report offers the market size and forecasts for the Hong Kong freight and logistics market in value (USD billion) for all the above segments.

Function
Freight Transportation
Road
Shipping
Rail
Air
Freight Forwarding
Warehousing
Value-added Services
End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail)
Healthcare and Pharmaceuticals
Other End users

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Key Market Trends

Trade is Driving the Growth of the Market

Trade is a major growth driver for the logistics industry; for instance, air transport is used as an important mode of transport for Hong Kong’s trade. Hong Kong is a major international trading hub, and the country’s economy is heavily reliant on trade. The total value of Hong Kong’s trade in 2021 was USD 1310.20 billion. Imports totaled USD 677.17 billion. Exports totaled USD 632.90 billion.

Mainland China is the most important export and import market for items transported by air. With the growing trade, the government is investing in the logistics infrastructure of the country. In 2021, Mainland of China was Hong Kong’s largest export market, accounting for 59.50% of the total exports (USD 376.55 billion).

The construction of the Third Runway System (3RS) began in 2016, and it is expected to be completed by 2024. According to IATA, the 3RS project will enable Hong Kong International Airport (HKIA) to handle future traffic demand of up to 8.9 million ton of cargo and 607,000 aircraft movements per year by 2030. Government initiatives like simple customs clearance procedures and HKIA’s 24-hour operation make it easy for goods destined for China to transit through Hong Kong.

Hong Kong Freight Logistics Market Trends

Sea Freight is Dominating the Market

Hong Kong has established itself as a premier International Maritime Centre, with one of the world’s largest shipping communities and a vibrant maritime cluster offering a full range of high-quality maritime services. It benefits from a well-established and strategically located port infrastructure. It is a major international trading hub with a large amount of logistics-related transportation. Hong Kong Shipping Register (HKSR) is a separate ship registration system from Mainland China. As of December 2020, there were approximately 2,600 vessels on HKSR, totaling 130 million GT. Furthermore, as of the end of 2019, Hong Kong was the world’s fourth-largest ship registry, trailing only Panama, Liberia, and the Marshall Islands. According to the Baltic Exchange and Chinese news agency Xinhua’s International Shipping Centre Development (ISCD) Index 2020, Hong Kong ranks fourth as an international maritime center, trailing Singapore, London, and Shanghai.

The government’s initiatives are helping the logistics companies in the maritime industry; for instance, the Hong Kong government has entered double taxation agreements (DTAs) with many countries, including the United States, the United Kingdom, the Netherlands, Denmark, Norway, and Germany. Hong Kong is seen as a preferred choice for foreign vessel owners due to its low tax regime and strong institutional environment, as well as a maritime services cluster.

Hong Kong Freight Logistics Market Report

Competitive Landscape

The freight and logistics market in Hong Kong is fairly fragmented in nature, with the top five to ten players accounting for a significant market share. The logistics sector in the country is made up of both domestic and international enterprises. The international companies initially struggled against local companies; however, the situation is changing. Some of the prominent players in the market include DHL, DB Schenker, Kerry Logistics, OOCL Logistics, and SF Express. The demand for integrated and specialized logistics solutions is rising. The logistics companies in the country are expected to adopt transport and warehouse management systems, big data, and analytics to remain competitive.

Recent Developments

  • In November 2021, Kerry Logistics Network entered a partnership with Malaysian cargo airline My Jet Express Airlines to offer customized air freight options within Asia. This will be done by operating a new solution with the Macau International Airport as the transit hub. The transit hub was established in Macau for three reasons: its proximity to one of KLN's customers' distribution center, its capability to allow carriage of products with batteries, and the efficiency of its customs clearance process.
  • In December 2021, DHL Global Forwarding, the leading international freight specialist division of Deutsche Group, became the first international forwarder to launch a two-way rail freight service between Kunming, China, and Vientiane, Laos, via the newly opened China-Laos railway. This first-of-its-kind rail service will shorten the transit time between Kunming and Vientiane from two days via road to about 20-24 hours.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Government Initiatives and Regulations

    4. 4.4 Technology Trends and Automation

    5. 4.5 Value Chain/Supply Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

    7. 4.7 Insights into Logistics Infrastructure in Hong Kong

    8. 4.8 Brief Analysis on Freight Rates

    9. 4.9 Spotlight - Hong Kong Trade with Chinese Provinces

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Function

      1. 5.1.1 Freight Transportation

        1. 5.1.1.1 Road

        2. 5.1.1.2 Shipping

        3. 5.1.1.3 Rail

        4. 5.1.1.4 Air

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services

    2. 5.2 End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail)

      6. 5.2.6 Healthcare and Pharmaceuticals

      7. 5.2.7 Other End users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 DHL Logistics

      2. 6.2.2 Kerry Logistics

      3. 6.2.3 DB Schenker

      4. 6.2.4 OOCL Logistics

      5. 6.2.5 SF Express

      6. 6.2.6 CTS International Logistics

      7. 6.2.7 Ferguson International Freight Forwarders Ltd

      8. 6.2.8 Ceva Logistics

      9. 6.2.9 United Parcel Services

      10. 6.2.10 Sino Trans Limited

      11. 6.2.11 Janco Holding Limited

      12. 6.2.12 China Merchants Port Holdings Co. Ltd

      13. 6.2.13 OTS Forwarding (HK) Ltd

      14. 6.2.14 Trans-Am Group (Trans-am Air Freight (HK) Ltd, Trans-am Sea Freight (HK) Ltd

      15. 6.2.15 Sea-Air Logistics (Hong Kong) Ltd*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX**

    1. 8.1 GDP Distribution, by Activity

    2. 8.2 Insights into Capital Flows

    3. 8.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy

    4. 8.4 External Trade Statistics - Export and Import, by Product

    5. 8.5 Insights into Key Export Destinations

    6. 8.6 Insights into Key Import Origin Countries

**Subject to Availability

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Frequently Asked Questions

The Hong Kong Freight and Logistics Market market is studied from 2017 - 2027.

The Hong Kong Freight and Logistics Market is growing at a CAGR of 5% over the next 5 years.

Kerry Logistics, OOCL Logistics, SF Express, DHL logistics, DB SChenker Logistics are the major companies operating in Hong Kong Freight and Logistics Market.

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