Hong Kong Manufacturers' Association: Long-distance shipping costs increase by 50 to 100%, putting pressure on business funds.

The President of the Hong Kong Chinese Manufacturers' Association, Lu Jinrong, stated that the conflict in the Middle East has affected the logistics costs of businesses. The freight rates for medium to short-haul routes have increased by 10% to 30%, while long-haul routes have seen a 50% to 100% increase. This has led to an increase in insurance and fuel surcharges, as well as a rise in prices of some raw materials such as metals and plastics by 10% to 30%. At the same time, the delivery time for businesses has been extended by two to three weeks, leading to increased financial pressure and difficulty in fully passing on the costs, resulting in narrowed profits. The Hong Kong Manufacturers' Association has launched a "Business Maritime Planner" service, matching each participating company with a dedicated planner to tailor-make a roadmap for going global. The scope of services covers establishment and operational support in Hong Kong, ESG compliance and green transformation deployment, product testing and international certification, technology upgrade and transformation, brand strategy and market promotion, as well as sales network expansion. Lu Jinrong stated that the service is mainly aimed at small and medium-sized enterprises or traditional industries seeking to upgrade and transform. They also hope to leverage the association's extensive membership network and international contacts to promote the "sailing together" of local and mainland Hong Kong enterprises, promoting mutual cooperation and complementarity.