A large number of cargo moving into Hong Kong was shifted to the ports of China during the years of the pandemic. The main reason behind the shift was the rather extensive COVID measures applied to truck drivers moving cross-border between the two countries.

Now analysts have noticed that Hong Kong is struggling to gain container volumes back, especially with the global slowdown in demand. The slow growth of its neighbour, China, also plays a key role in the country’s economic situation.

Speaking to the Journal of Commerce (JOC), Roberto Giannetta, chairman of the Hong Kong Liner Shipping Association, said: “The trucking and barge restrictions during COVID-19 most definitely have affected all shipping lines' China transshipment cargo through Hong Kong.”

Despite the lifting of the COVID measures, “it is proving to be very unrealistic that shipping patterns for this China transshipment cargo will come back to Hong Kong,” adds Giannetta.

According to JOC, the Hong Kong transport department reported a nearly 50% drop in containers moved by trucks in 2022. Compared to about 6 million TEU in 2020 and 2021, the country moved only 2.8 million TEU in 2022.

Experts believe shippers are reluctant to go back to trucking as they find it easier to move cargo through China’s ports, such as Shenzhen. Talks between China and Hong Kong about the situation failed to deliver tangible results, says JOC.

Observes suspect that China is actually benefiting from the shift to its ports. JOC cites a senior shipping executive as saying, “China had little incentive to fix this.” To him, “China placated the concerns of Hong Kong government officials by offering to look at the situation ... but in reality, not much changed until COVID-19 restrictions were lifted at the end of last year.”