Transportation and Logistics

Due to its location, infrastructure, regulation, and know-how, Hong Kong is a major global trading hub and a gateway to and from mainland China. The city is well-positioned for international business, providing access to half of the world’s population within a five-hour flight time and infrastructure including both one of the world’s biggest container ports and a high efficient airport with many intercontinental connections.

Most products to enter Hong Kong are exempted from customs control and as a free port, no tariff quotas, value-added tax (VAT), or goods and service tax (GST), are imposed. Only certain items such as liquors, tobacco, and oil will apply duty.

Transportation

Many companies operating in Hong Kong and mainland China are involved in trading physical goods, either by sourcing in the region and/or importing goods for their business. Shipment can be made in many ways, such as:

• Parcel shipments for handling of smaller size goods,
• Road transport by truck,
• Rail freight,
• Air Freight
• Ocean Freight either by full container (FCL) and/or by part container load (LCL).

In general, air freight is the fastest service while the ocean freight is the most economical mode of transportation for overseas shipping of bigger cargo. Normally, consolidation solutions are available to all types of cargo and provide a cost-effective solution for cargoes not big enough to fill a whole container. For example, if an order is not big enough to load a full container, or you want to ship more frequently with lower inventory costs.

The easiest solution to provide for logistics service, transportation of goods, and required paperwork for shipping and customs handling etc is to appoint and cooperate with one of Hong Kong´s freight forwarding companies. Freight forwarding is used by most importers and exporters to arrange the handling and freight of their shipments. Most freight forwarders can offer service for all the various transportation modes required. They are also able to provide information and guidance to the best options for your needs.

Documentation

Documentation has an essential role. Shipping goods internationally requires correct documentation, or you run the risk of delays and extra costs or even preventing a shipment from being completed. Whether you’re importing or exporting, you need to know what paperwork is required and to secure the right documentation is available. Cargo owners need to know procedures and when working with a professional freight forwarder they shall be able to respond to any questions and guide you.

Some key documentation you should be aware of:

• Standard shipping documents include:
• Commercial invoice (shall be provided by the shipper)
• Packing list (shall be provided by the shipper)
• Bill of Lading / Airwaybill / Railbill (will be provided by your carrier/freight forwarder)

Based on your cargo and location, further documents may be required as;

• Certificate of origin
• Letter of credit
• Export Permits / Licenses
• Phytosanitary certificate

Cargo Inusrance

While all carriers handle shipment with the utmost care and attention there are, despite all precautions, inherent risks during transportation, handling, and storage. All carriers and other supply chain participants will typically have their liability limited by law, which means that any compensation you receive is likely to be considerably lower than your actual loss if any accident happens.

Always check and ensure that your goods in transit are covered to their full value. If you are not certain of your coverage, check with your insurance company or your freight forwarder for their assistance.

Warehousing

With global trading and increased requirements for flexibility from clients, the demand for warehousing and transit storage keeps increasing. Most freight forwarders can provide service to hold stock and service for consolidation or order picking.

Common services provided in connection to warehousing in the region are:

• Secure and flexible storage solutions
• Support holding stock in China or Hong Kong
• Arrange order assembly and picking
• Repacking
• Provide bonded and non-bonded services
• Delay Duty and VAT payments in China or overseas
• Allow partial shipping

Cross border E-Commerce

The rapid growth of cross border and global e-commerce has developed the Hong Kong logistics sector to a world-leading hub for supply chain services in warehousing, distribution, and fulfillment facilities.

Hong Kong has a crucial role in the Greater Bay Area (GBA) and continuously integrates its logistics network for transportation. The GBA is a fast-growing region, including Hong Kong and Macao SAR, and the nine cities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing in Guangdong Province. The total population in the Greater Bay Area is over 86 million and a GDP of USD 1,668.8 billion in 2020, creating a huge and very potential market.