Chairman’s Message (Annual Report 2025)
Willy Lin, Chairman
Adapting to Global Trade Shifts : Protecting Shippers' Interests in a Challenging Environment
In 2025, the predominant factor affecting global trade was the shift in U.S. tariff policy. In response, the Council’s core activities focused on updating the trade situation, analyzing impacts, suggesting alternatives, and organizing stakeholders to identify mitigations and potential opportunities. The Council also dedicated efforts to addressing two other major developments: digital transformation and sustainable development. Through these activities, the Council aims to support the trading community, particularly in navigating a chaotic environment, by helping to shape sound directions and policies and by enabling the most appropriate actions to be taken.
In its Global Trade Outlook of April 2025, the WTO revised its forecast for merchandise trade to a –0.2% contraction in 2025, down significantly from the +2.9% increase recorded in 2024. Against this backdrop, global trade remains clouded by uncertainty.
Hong Kong ports experienced significant setbacks beginning in May, adding to the pressures facing the regional trading hub.
While the Council supported the need for maritime shipping, a major carbon emitter, to "go greener," it raised concerns that shipping lines were turning green initiatives into profit-making exercises. Shipping lines have rapidly introduced additional carbon emission-related surcharges on top of existing fuel surcharges. These new charges include:
Fuel Surcharge / Bunker Adjustment Factor
Low Sulphur Adjustment Charge
Fuel Cost Recovery Charge
Europe Environment Surcharge (EES)
Energy Transition Surcharge
Global Fuel Surcharge
Low Sulphur Fuel Surcharge (LSA)
ETS / ESS / EMS
Ship Green Fee
Marine Fuel Recovery Surcharge
New Emission Fee (NEF)
New Bunker Adjustment Factor (NBAF)
The Council warned of increasing concentration in the global maritime shipping market, with the top three carriers accounting for as much as 47.2% of total global capacity. Such a high degree of market concentration is exceptional by global industry standards and could pose a serious threat to the interests of shippers.
At the same time, shipping lines' performance remained highly unsatisfactory, with average vessel delays reaching as high as 4.68 days.
The Council has issued Shipping Alerts warning shippers of the following:
Carbon emission-related surcharges imposed by shipping lines are numerous and vary significantly.
Persistent port congestion is expected to last until the end of the year.
Shippers should stay updated on the recent downward trend in freight rates.
Global port delays soared 300% above normal in June 2025.
Shippers should stay alert to upcoming rate hikes and surcharges.
As Trump's 90-day tariff pause is set to lapse, shippers should take caution regarding the likely impacts.
Freight rates have declined as U.S. tariffs weaken shipping demand.
Shippers should stay alert to a surge in blank sailings on transpacific routes.
On the other hand, the air freight industry was benefiting from an increase in e-commerce and front-loading driven by U.S. tariff changes and broader supply chain disruptions.
The Council highlighted key shifts in supply chains, including changes in cargo origins and destinations, transshipment arrangements, and cargo types. It also noted the likelihood of a rise in B2B2C shipments at the expense of B2C e-commerce. In addition, the Council cautioned the trade about potential capacity shortages, particularly for wide-body freighters, due to a lack of new supply in recent years.
The Council also made submissions to the SAR Government on a range of strategic initiatives, including the development of the Lung Kwun Tan Reclamation and the re-planning of Tuen Mun West Area, the 2025 Policy Address consultation on Hong Kong as an international shipping centre and aviation hub, and the provision of logistics lands in the Hung Shui Kiu area.
In addition, the Council organized a session at the Asian Logistics, Maritime and Aviation Conference on 18 November titled "New Businesses in New Markets." Prominent speakers from LALAMOVE, the Hong Kong E-commerce Logistics Association, DealerSend, and Tradelink were invited to share their views and expertise. The Council recognized that ample opportunities exist in new businesses and new markets, and that Hong Kong corporations must develop proper strategies to achieve growth.
To support talent development in the logistics industry, the Council jointly organized The NextGen Logisticians Award with the Hong Kong Logistics Association in November. The award, an initiative of the Transport and Logistics Bureau, is backed by the full support of the industry and aims to recognize outstanding talent. This is the second consecutive year that the Council has organized the award, having first done so in 2024. The achievements of the awardees have been truly impressive.
The Council completed the "Empower the Logistics Industry and Hong Kong Enterprises to Implement Digital Transformation and Achieve Competency in Hong Kong" project in April. Supported by the Trade and Industrial Organisation Support Fund (TSF), the project was designed to provide a practical guide for Hong Kong enterprises to navigate the path of digital transformation. Digitization will underpin the development of society, particularly in commerce and business.
In November, global shippers convened in Bali, Indonesia, for the Global Shippers' Alliance Meeting and the Asian Shippers' Alliance (ASA) Meeting. The Council Chairman was re-elected as Vice-Chair of ASA. ASA has identified three main projects for 2026:
• Minimum Service Levels for Shippers
• Shippers' Resilience and Competitiveness
• Unity and Global Voice
An Executive Committee under ASA has been formed to oversee the development of these projects.
Recognizing the importance of enhancing professionalism and talent development in the industry, the Council has always placed a strong emphasis on organizing training courses. The following courses have been offered :
• Executive Certificate in Green Transport & Logistics and Certified ESG Planner (CEP)
• Comprehensive Certificate Course in Shipping and Logistics
• International Maritime Dangerous Goods (IMDG) Course
• Smart Port and Logistics 4.0
• Carbon Emission Calculation and Sustainable Development for the Logistics Industry
In February, the Council participated in a Transport Sector delegation to Beijing, during which it presented its views and recommendations to various bureaus of the Central Government. Key areas addressed included diversifying cargo sources to Hong Kong, lowering operational costs to enhance the competitiveness of the port, and developing professional services.
The Council organized visits to Shenzhen in June, Ningbo in July, Nanjing in October, and Nansha in December. These visits aimed to equip members and associates with the latest market insights and technological applications shaping the industry.
In response to the Competition Commission's request for input regarding the Competition (Block Exemption for Vessel Sharing Agreements) Order 2017, the Council made a submission in November. The Council highlighted several critical considerations, including the market reality of the liner industry, whether the benefits of the Order have been passed on to users, the suitability of self-assessment over exemption, and whether the conditions such as the market share threshold, withdrawal rights, and the absence of hardcore restrictions are maintained. The Council provided updates on market and industry information, outlined current pain points for shippers, and suggested prerequisites should the exemption be granted again.
As we look ahead, 2026 marks a significant milestone - the Council's 50th Anniversary. Building on our mission, we will continue to represent the voices of Hong Kong shippers clearly and effectively at the local, regional, and international levels, while championing the industry by helping members unlock new markets, achieve sustainable growth, and drive toward a resilient, smarter, digital, greener, and more competitive logistics environment.
In 2025, the predominant factor affecting global trade was the shift in U.S. tariff policy. In response, the Council’s core activities focused on updating the trade situation, analyzing impacts, suggesting alternatives, and organizing stakeholders to identify mitigations and potential opportunities. The Council also dedicated efforts to addressing two other major developments: digital transformation and sustainable development. Through these activities, the Council aims to support the trading community, particularly in navigating a chaotic environment, by helping to shape sound directions and policies and by enabling the most appropriate actions to be taken.
In its Global Trade Outlook of April 2025, the WTO revised its forecast for merchandise trade to a –0.2% contraction in 2025, down significantly from the +2.9% increase recorded in 2024. Against this backdrop, global trade remains clouded by uncertainty.
Hong Kong ports experienced significant setbacks beginning in May, adding to the pressures facing the regional trading hub.
While the Council supported the need for maritime shipping, a major carbon emitter, to "go greener," it raised concerns that shipping lines were turning green initiatives into profit-making exercises. Shipping lines have rapidly introduced additional carbon emission-related surcharges on top of existing fuel surcharges. These new charges include:
Fuel Surcharge / Bunker Adjustment Factor
Low Sulphur Adjustment Charge
Fuel Cost Recovery Charge
Europe Environment Surcharge (EES)
Energy Transition Surcharge
Global Fuel Surcharge
Low Sulphur Fuel Surcharge (LSA)
ETS / ESS / EMS
Ship Green Fee
Marine Fuel Recovery Surcharge
New Emission Fee (NEF)
New Bunker Adjustment Factor (NBAF)
The Council warned of increasing concentration in the global maritime shipping market, with the top three carriers accounting for as much as 47.2% of total global capacity. Such a high degree of market concentration is exceptional by global industry standards and could pose a serious threat to the interests of shippers.
At the same time, shipping lines' performance remained highly unsatisfactory, with average vessel delays reaching as high as 4.68 days.
The Council has issued Shipping Alerts warning shippers of the following:
Carbon emission-related surcharges imposed by shipping lines are numerous and vary significantly.
Persistent port congestion is expected to last until the end of the year.
Shippers should stay updated on the recent downward trend in freight rates.
Global port delays soared 300% above normal in June 2025.
Shippers should stay alert to upcoming rate hikes and surcharges.
As Trump's 90-day tariff pause is set to lapse, shippers should take caution regarding the likely impacts.
Freight rates have declined as U.S. tariffs weaken shipping demand.
Shippers should stay alert to a surge in blank sailings on transpacific routes.
On the other hand, the air freight industry was benefiting from an increase in e-commerce and front-loading driven by U.S. tariff changes and broader supply chain disruptions.
The Council highlighted key shifts in supply chains, including changes in cargo origins and destinations, transshipment arrangements, and cargo types. It also noted the likelihood of a rise in B2B2C shipments at the expense of B2C e-commerce. In addition, the Council cautioned the trade about potential capacity shortages, particularly for wide-body freighters, due to a lack of new supply in recent years.
The Council also made submissions to the SAR Government on a range of strategic initiatives, including the development of the Lung Kwun Tan Reclamation and the re-planning of Tuen Mun West Area, the 2025 Policy Address consultation on Hong Kong as an international shipping centre and aviation hub, and the provision of logistics lands in the Hung Shui Kiu area.
In addition, the Council organized a session at the Asian Logistics, Maritime and Aviation Conference on 18 November titled "New Businesses in New Markets." Prominent speakers from LALAMOVE, the Hong Kong E-commerce Logistics Association, DealerSend, and Tradelink were invited to share their views and expertise. The Council recognized that ample opportunities exist in new businesses and new markets, and that Hong Kong corporations must develop proper strategies to achieve growth.
To support talent development in the logistics industry, the Council jointly organized The NextGen Logisticians Award with the Hong Kong Logistics Association in November. The award, an initiative of the Transport and Logistics Bureau, is backed by the full support of the industry and aims to recognize outstanding talent. This is the second consecutive year that the Council has organized the award, having first done so in 2024. The achievements of the awardees have been truly impressive.
The Council completed the "Empower the Logistics Industry and Hong Kong Enterprises to Implement Digital Transformation and Achieve Competency in Hong Kong" project in April. Supported by the Trade and Industrial Organisation Support Fund (TSF), the project was designed to provide a practical guide for Hong Kong enterprises to navigate the path of digital transformation. Digitization will underpin the development of society, particularly in commerce and business.
In November, global shippers convened in Bali, Indonesia, for the Global Shippers' Alliance Meeting and the Asian Shippers' Alliance (ASA) Meeting. The Council Chairman was re-elected as Vice-Chair of ASA. ASA has identified three main projects for 2026:
• Minimum Service Levels for Shippers
• Shippers' Resilience and Competitiveness
• Unity and Global Voice
An Executive Committee under ASA has been formed to oversee the development of these projects.
Recognizing the importance of enhancing professionalism and talent development in the industry, the Council has always placed a strong emphasis on organizing training courses. The following courses have been offered :
• Executive Certificate in Green Transport & Logistics and Certified ESG Planner (CEP)
• Comprehensive Certificate Course in Shipping and Logistics
• International Maritime Dangerous Goods (IMDG) Course
• Smart Port and Logistics 4.0
• Carbon Emission Calculation and Sustainable Development for the Logistics Industry
In February, the Council participated in a Transport Sector delegation to Beijing, during which it presented its views and recommendations to various bureaus of the Central Government. Key areas addressed included diversifying cargo sources to Hong Kong, lowering operational costs to enhance the competitiveness of the port, and developing professional services.
The Council organized visits to Shenzhen in June, Ningbo in July, Nanjing in October, and Nansha in December. These visits aimed to equip members and associates with the latest market insights and technological applications shaping the industry.
In response to the Competition Commission's request for input regarding the Competition (Block Exemption for Vessel Sharing Agreements) Order 2017, the Council made a submission in November. The Council highlighted several critical considerations, including the market reality of the liner industry, whether the benefits of the Order have been passed on to users, the suitability of self-assessment over exemption, and whether the conditions such as the market share threshold, withdrawal rights, and the absence of hardcore restrictions are maintained. The Council provided updates on market and industry information, outlined current pain points for shippers, and suggested prerequisites should the exemption be granted again.
As we look ahead, 2026 marks a significant milestone - the Council's 50th Anniversary. Building on our mission, we will continue to represent the voices of Hong Kong shippers clearly and effectively at the local, regional, and international levels, while championing the industry by helping members unlock new markets, achieve sustainable growth, and drive toward a resilient, smarter, digital, greener, and more competitive logistics environment.