More and more international shipping companies are leaving Hong Kong or are planning to do so. Shipping company owners fear possible US sanctions.
The USA is examining increased measures against Chinese shipping companies. Washington already warned of supposed economic risks in Hong Kong in September. The US government is also planning high port charges for Chinese shipping companies.
The city is considered an important shipping center. According to the London-based valuation company VesselsValue, the HK flag is ranked 8th in the world. However, the number of registered ships has been declining since 2021. From 2,580 seagoing vessels in 2020, the number had fallen to just 2,366 by January 2024.
Possible conflict with Taiwan
In the event of a possible military conflict between China and Taiwan, the USA would most likely defend the island state, as this is in its geopolitical interests. China regards Taiwan as part of its territory and could attempt to conquer the island by force. In this case, Beijing would have to rely on its merchant fleet to transport troops and supplies.
Since 2015, the government has stipulated that certain Chinese ships must be usable for military purposes. International shipping companies fear that Hong Kong-registered ships could be confiscated by China or sanctioned by the USA for military purposes. Some are therefore relocating their fleets to more neutral countries such as Singapore or the Marshall Islands. At the same time, the US is tightening measures against Chinese shipping companies in order to curb what it sees as China’s excessive influence on global shipping.
Hong Kong’s future is uncertain
The Hong Kong government points to tax breaks and subsidies to promote the location. According to the government, China has no power to seize ships.
Taylor Maritime, a shipping company with roots in Hong Kong, has already relocated parts of its activities to Singapore. Pacific Basin Shipping, with a fleet of 110 bulk carriers, is in the process of developing contingency plans and intends to reflag ships in the event of a crisis or sanctions.
Despite the geopolitical risks and the relocation of some shipping companies, the Special Administrative Region is still considered an important shipping location. Industry experts emphasize that the city remains important for global shipping due to its strategic location, its financial sector and its maritime infrastructure. Hong Kong also offers tax benefits, an established legal system and close economic ties with China, which remains attractive to many companies.
The USA, on the other hand, has a small merchant fleet, but wants to expand this with the support of South Korean shipyards. Donald Trump’s administration plans to establish a shipbuilding authority and exercise greater control over critical port infrastructure such as the Panama Canal. (rup)
