Hong Kong’s air exports are set to receive a major boost after the government decided to lift the ban on the transhipment of e-cigarettes and vapes. The ban on such cargo had a significant impact on Hong Kong’s annual export volumes by air, as it accounted for about 330,000 tons a year, which is equivalent to around 10% of the total air exports, according to the Hong Kong Association of Freight Forwarding and Logistics (HAFFA).
The value of re-export cargo affected by the ban was estimated to exceed CNY120bn ($17.33bn). The ban had caused serious concern among Hong Kong’s freight businesses, and there was a noticeable decline in Hong Kong’s overall air export volume due to it. This has affected not only the freight industry but also airlines, cargo terminals, and Hong Kong International Airport, which have lost hundreds of thousands of tons of re-exports every year.
The Effect of the Ban
From April last year, vapes entering Hong Kong by land or sea, intended for onward transport by air, were banned. While some transhipment by air had continued to be permitted, it was not enough to mitigate the impact of the ban. Exporters had started shipping their products via land to Hong Kong International Airport, which is adjacent to the mainland China border. However, this led to additional costs and complexities for the exporters.
The Lifting of the Ban
The Hong Kong government’s decision to reverse the ban is expected to have a positive impact on the freight industry. The scheme will allow the goods to enter Hong Kong through a secured channel on dedicated barges and be delivered straight to the airport. This will enable direct transhipment through Hong Kong, and the goods will not be available for domestic consumption. The proposal is in response to the demand of the Hong Kong air freight industry.
The chairman of the Hong Kong Shippers Council, Willy Lin, said: “We hope we could get back some flights lost to competitor airports due to stoppage of shipments of e-cigarettes and related substances through Hong Kong.” The lifting of the ban is expected to contribute positively to the recovery of air freight tonnage, and it will help Hong Kong to maintain its status as an international logistics hub.
Impact on Hong Kong’s Economy
The Hong Kong economy is on course for recovery, and the lifting of the ban is expected to give it a boost. The re-export of e-cigarettes and vapes will have a significant impact on Hong Kong’s export volumes by air. It will also help to improve the country’s overall air export volume, which had declined since the ban was imposed. The lifting of the ban is expected to stimulate the freight industry, which will have a positive impact on the economy.
FAQs
Can people in Hong Kong buy e-cigarettes and vapes?
No, people in Hong Kong cannot buy e-cigarettes and vapes. However, they are allowed to use them.How much cargo was affected by the ban on e-cigarettes and vapes?
The banned cargo amounted to about 330,000 tons a year, which is equivalent to around 10% of Hong Kong’s annual export volumes by air.What is the estimated value of the re-export cargo affected by the ban?
The value of the re-export cargo affected by the ban was estimated to exceed CNY120bn ($17.33bn).What was the impact of the ban on Hong Kong’s freight industry?
The ban had a significant impact on Hong Kong’s freight industry, and there was a noticeable decline in Hong Kong’s overall air export volume due to it. It has affected not only the freight industry but also airlines, cargo terminals, and Hong Kong International Airport, which have lost hundreds of thousands of tons of re-exports every year.What is the purpose of lifting the ban on e-cigarettes and vapes in Hong Kong?
The purpose of lifting the ban is to allow direct transhipment through Hong Kong for e-cigarettes and vapes, which will help to boost Hong Kong’s air exports. The scheme is only to facilitate direct transhipment through Hong Kong, and the goods will not be available for domestic consumption.
