Market Trends of Hong Kong Customs Brokerage Industry
Hong Kong’s Trade Activities Driving the Market
Hong Kong's import and export trading sector provides services mainly in the form of offshore buying and selling of goods. Given Hong Kong's location and the relocation of Hong Kong's manufacturing bases to the mainland, particularly the Pearl River Delta, mainland China is a major source of offshore trading activities. It is an important entrepot for Mainland China.
Freight transportation is mainly dependent on the volume of imports and exports and ultimately increases the growth of the customs brokerage market. The surge in imports is the primary reason for the growth of the customs brokerage market in Hong Kong.
In 2022, the value of merchandise exports from Hong Kong totaled more than USD 610 billion. China is the top export destination to Hong Kong, with more than USD 350 billion in goods exported to China in 2022. Followed by the United States (with USD 38 billion), and India (with USD 22 billion). In addition, in 2022, Hong Kong’s major imports include machinery and transport equipment (66% of total imports), miscellaneous manufactured articles (14% of total imports); manufactured goods (9% of total imports), and food and live animals (4% of total imports). Thus, the continuous trade activities in the country further drive the custom brokerage market.
Surge in Air and Sea-borne Cargo in Hong Kong to Provide Opportunities
In Q2 2023, according to the Census and Statistics Department statistics, Hong Kong’s total port cargo throughput reached 44.5 million tons, which was up by more than 8% when compared to the previous quarter. In addition, the major sources of inbound cargo in Q2 2023 were Malaysia, Vietnam, Japan, Taiwan, Mainland China, and South Korea. Also, the major destinations for outbound cargo were the United States, Taiwan, Australia, Vietnam, Japan, etc.
The Hong Kong International Airport is one of the busiest and most advanced airports. It consolidates Hong Kong’s position as a hub of commerce and plays a very important role in the development of Hong Kong as a logistics center. In July 2023, Hong Kong International Airport witnessed continuous growth in cargo volumes registered a year-on-year growth rate of more than 3.8% and transported nearly 361,000 tonnes of cargo. In addition, according to the Census and Statistics Department of Hong Kong, air cargo played a vital role in the country’s imports, more than USD 340 million worth of goods were imported through air cargo transportation.
Water transport is one of the most important modes of international trade. Hence, there is an increase in demand for customs brokerage, air cargo due to the transport of perishable pharma products and chemicals, and an increase in just-in-time production of goods. All these factors are paving the way for the growth of customs brokerage in Hong Kong.
