Finnair Cargo’s Hong Kong office has been up and running since 2007. The direct daily flight between Hong Kong and Helsinki is a significant competitive edge, as it is Hong Kong’s fastest transport link with Europe.
“We fly from Hong Kong to Helsinki in 10 hours. The excellent onward connections from Helsinki provide an added value for our customers,” says Kylie Lee, Finnair Cargo’s Sales Manager for Hong Kong.
Hong Kong, like New York, is a hub metropolis that never sleeps, says Lee.
“The city's competitive advantages are its speed in handling cargo and its location within the Asian economic area. As a free trade zone, Hong Kong’s speed of handling customs formalities also gives it an advantage,” Lee says.

The highly-automated cargo centre operated by Hong Kong Air Cargo Terminals Ltd (HACTL) serves international air freight customers around the clock. In 2009, more than 2.32 million tonnes of air freight passed through Hong Kong, most of which was electronics and components.
“Along with electronics and IT equipment, the air cargo also includes lots of clothing, watches and eyeglasses,” Lee says.
Although Hong Kong lacks any heavy industry of its own, it plays pivotal role in cargo traffic – both between Hong Kong and China’s Pearl River Delta economic zone and between Hong Kong and Europe.
Moving manufacturing facilities to more nearby locations in Asia has also eased the peak-season rush periods of the past,” Lee says. 

Our teamwork is aimed at finding the fastest, most competitive solutions for our customers,” Kylie Lee tells.

Finnair Cargo has effectively marketed its services during the past year, boosting its recognition among both forwarding companies and private customers.
“We are a small, quick, flexible player with specialised know-how in cargo traffic; one that seeks solutions tailored to customer needs. Our teamwork is aimed at finding the fastest, most competitive solutions for our customers,” says Lee.
In 2009, the recession sharply reduced the volume of air freight flowing through
Hong Kong, but business clearly began to recover toward year’s end.
“Last year was really challenging, one long rollercoaster ride,” says Lee. “Still, despite the ups and downs, we managed to grow our cargo volumes.”
The competition for air cargo is fierce, and Hong Kong has to compete for customers with air freight services based in mainland China.

The world’s biggest air freight terminal

Hong Kong’s HACTL air freight terminal was established in 1971. The current cargo centre was built in 1998. This expansion anticipated the changes in international trade that would transform China’s Pearl River Delta economic zone into a global economic powerhouse.
HACTL boasts 10,000 cargo storage positions as well as space for 3,500 cargo containers. Air cargo processing is entirely automated, with manual handling only in exceptional cases.
Because of its high level of automation, HACTL can quickly and securely process thousands of tonnes of cargo in a short period of time. During the peak year of 2007, it handled almost 10,000 tonnes of air freight during one 24-hour period.

Cargo volumes were pushed down by the recession, but began to pick up again in the autumn of 2009, though the overall volume remained below that of the year before. By the end of the year, HACTL’s annualised total of air cargo was 8,3 per cent lower than that in 2008. However during the last quarter of 2009, HACTL’s air freight grew by 17,9 per cent compared with the same month the previous year.

Exports perking up

During the last quarter of 2009, there were signs of recovery in the air cargo business.
During October and November, the volume of air freight passing through Hong Kong was up by 17,9 per cent compared with a year earlier.
“The recession really battered Hong Kong’s economy since the area does not have its own manufacturing industry. Ninety per cent of the economy is service-driven,” says Esa Rantanen, head of Finpro’s Finland Trade Centre in Hong Kong.
“The economic crisis that began in the autumn of 2008 had a drastic impact on Hong Kong’s real estate market, as a number of service providers went bankrupt.”

Last year was a weak one for Hong Kong’s economy until late August, when signs of improvement began to appear.
“We are still nowhere near the 2007 figures, but a 20 per cent growth was visible at the end of last year,” Rantanen says.
The change can also been seen in business operations in the Pearl River Delta economic zone, which is crucial for Hong Kong’s air cargo sector.
“Last spring, there weren’t many people at the biggest retail goods trade fairs in Canton, but last autumn they too began to pick up. Still, there were not as many American and European buyers on hand as in the past,” Rantanen notes.
Building has resumed at construction sites in the Pearl River Delta area, and labour shortages are even reported in some areas. According to the latest forecasts, China’s GNP is set to grow by as much as 10 per cent this year.
“Hong Kong’s GNP remained in negative territory for 2009, between around -3.5 and -4.5 per cent, even though the drop was not as bad as predicted. The Chinese government has tried to boost domestic demand through stimulus packages, but it remains to be seen how the shift from an export-driven economy to one driven by domestic markets will begin to work,” Rantanen says.
 

Tourist information regarding Hong Kong is available on Finnair web site (Plan & Book -> Destinations -> Intercontinental)