Secretary for Transport and Logistics Mable Chan on Wednesday said the government will continue to monitor changes to cargo fuel surcharges to ensure transparency.

Since the start of last year, airlines have been allowed to set their own cargo fuel surcharge levels or choose not to levy one at all for flights departing from Hong Kong.

At a Legislative Council meeting, the DAB's Ben Chan asked whether officials could establish a mechanism to link surcharge adjustments directly to international fuel prices.

He said some airlines significantly increased fuel surcharges this year and this made Hong Kong's cargo industry less competitive.

In response, the transport secretary said the government has been speaking to airlines and industry representatives in view of the higher fuel prices brought on by the Middle East conflict.

“Over the past two months, the government has held multiple meetings with local airlines and arranged two joint meetings between local airlines and the cargo industry to better understand the situation and urge local airlines to strengthen communication with the trade,” she said.

“As aviation fuel prices have eased slightly recently, several local airlines have made two rounds of downward adjustments to their cargo fuel surcharges.

“The government will continue to closely monitor adjustments to fuel surcharges to ensure the process remains reasonable and transparent.”

Commercial sector lawmaker Erik Yim asked whether the government could offer short-term subsidies or tax relief for air freight forwarders and cross-boundary e-commerce and logistics companies.

Mable Chan said the cargo industry's concerns are not merely about operating costs, but also the lack of shipping capacity to handle sudden surges in demand.

She said officials will seek ways to assist them, such as by exploring talks with both local and non-local airlines.

The transport chief also pointed out that fuel accounts for 30 percent of airlines’ total operation costs, saying it is vital to make sure they can sustain reliable services and maintain normal operations.



Edited by Thomas McAlinden