ABSTRACT

Based on Hong Kong’s air-borne trade pattern since 2000, this chapter reveals the increasing importance of Mainland China in Hong Kong’s air cargo business. Hong Kong plays a significant role as a gateway to southern China. However, after the 2008 financial crisis, a number of factors raised the dynamics of the air cargo business in Hong Kong. Since then, demand for air cargo service in Hong Kong has become more sensitive to freight rate and income than before. In addition to the deteriorating global economic environment, both regulation and policy changes in China and competition from airports in Mainland China contribute to this change. Despite these new developments, Hong Kong has managed to keep its competitive edge in the air cargo business, mainly owing to its free port status, strategic positioning, efficient customs clearance, strong international connectivity, and great special cargo handling skills.