The Hong Kong freight and logistics market is anticipated to register a CAGR of about 5% during the forecast period (2022-2027).
The outbreak of COVID-19 has severely impacted the logistics services between the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) and neighboring Shenzen on the mainland as a large number of drivers fell sick or are in quarantine. This has greatly affected the business as companies are not able to dispatch drivers even though the trucks are available. It is hard to hire drivers in Hong Kong despite offering a good salary. Most drivers are between 50 to 60 years old. Young people are not interested in this work.
There is an emergence of new technologies, companies, customers, and new business models in the industry. Freight companies are increasingly focusing on digitization to improve efficiency, which is reshaping the marketplace. Increasing preference for third-party logistics by various industries may promote the growth of the industry in the near to medium-term future.
The limited presence of an integrated IT system, fragmented warehousing, infrastructure handling capacity, and multiple regulations are challenging the growth of the freight sector in Hong Kong. Improving digitization and increasing adoption of the Internet of Things by various industries are driving the freight transportation market. The freight transportation sector contributes a significant portion of the overall employment in the country, and with growing government support for the sector, employment in the sector is forecast to rise exponentially.
