Hong Kong Container Volume Dips for Third Straight Month

Hong Kong’s container port has seen year-over-year growth in container volume decelerate for three consecutive months.

Numbers from the Marine Department of the Hong Kong Special Administration Region show Hong Kong handled a throughput of 1.8 million TEUs in September, down 7.3 per cent from September 2013. Hong Kong’s year-to-date volume totals 16.8 million TEUs, up 1.5 % from the same period of 2013.

The months of July and August in 2014 also had lower monthly volumes than in 2013. July traffic totalled 1.9 million TEUs, down 0.7 % from July 2013 totals. August throughput was 1.87 million TEUs, 2.9% lower year-over-year.

The port has been operating at critical levels of congestion since mid-September, with delays in transhipment cargo transfer the main cause. Although the problems were first highlighted in the 2000s, the government has taken very little action to update port facilities or provide backup land for logistics. Calls from today’s giant container ships exacerbate the problem, as the port has had issues with big-ship productivity.

Many, including terminal operators and the Hong Kong Liner Shipping Association, say Hong Kong is losing its competitive edge to neighbouring ports.

Last year, Hong Kong slipped from No. 3 to No. 4 on the JOC’s Top 50 World Container Ports list. Hong Kong’s volumes dropped 3.3 per cent from 2012 to 2013, totalling 22.4 million, in part because of a 40-day dockworker strike that held back volumes at five terminals. Shenzhen took over Hong Kong’s No. 3 spot with a total of 23.3 million TEUs.

The majority of ports in China have yet to report September numbers, though many have stronger growth rates than Hong Kong.

The Port of Busan, No. 5 on the Top 50 list, has reported 3.2 % growth year-to-date. Its throughput through August totalled 12.2 million TEUs. The Chinese ports of Ningbo-Zhousan, Qingdao and Guangzhou also have stronger growth rates than Hong Kong. Ningbo reported 11.8 % more cargo than in 2013, with a year-to-date total of 13.1 million TEUs.

Qingdao’s year-to-date throughput is up 5 %, totalling 11.1 million TEUs. Guangzhou has seen a 7.9% increase in volume year-to-date, handling 10.5 million TEUs. Through August, Shenzhen reported 15.4 million TEUs year-to-date.