Hong Kong’s economy is one of the most trade-oriented economies and all around the world; Hong Kong is known for its shipping and logistics services. As no borders exist in Ecommerce, nowadays many companies expand their business not just in their local region but also internationally through a significant range of logistics service providers.
So why is Hong Kong an essential hub for shipping your goods through?
What reasons make Hong Kong ranked as the most prominent and busiest hubs in the world?
In this article, we’re going to read about the reasons why Hong Kong is an important shipping hub, how to find a reliable forwarder in Hong Kong and what Top shipping companies have service from Hong Kong.
Five reasons Hong Kong is an excellent answer to shipping your goods
Hong Kong manages on an annual basis over 4 million tons of air cargo and around 24 million of ocean freight as the world’s leading cargo transhipment hub.
It is also predicted by the International Air Transport Association that It will continue being the world’ fastest-growing air cargo market.
The effect of the more than 200,000 vessel calls also combines with the significant network connections to over 550 container ports around the world, ensures an increasing volume of ocean freight transshipments.
Hong Kong’s competitive advantage as a global logistics hub revolves around five competencies.
1 – Hong Kong’s accessibility by airway, roadway, and sea
The top main point about Hong Kong is it’s located right in the centre of the Asia-Pacific region’s major shipping routes and is extremely well connected to Mainland China.
It’s the 4th biggest container port of the whole world and is situated within driving distance of the two main cities for shipping, Shenzhen (the 3rd biggest) and Guangzhou (the 8th biggest)
Hong Kong is also known as the world’s biggest air cargo hub; this means more than 50% of the world’s population are only withing a five-hour flight from Hong Kong. This makes Hong Kong a great base for storing goods and shipping them to customers all around the world.
So with storing and shipping facilities of Hong Kong delivery of goods has never been faster to customers pretty much anywhere in the world.
2 – You can avoid taxes and tariffs in Hong Kong
Another important point is Hong Kong has a strong free trade policy; This means that when entering or leaving the territory, goods are not subject to customs duties.
Even though the trade war between the US and China continues, Hong Kong has managed to avoid the new tariff because of its status and an independent customs territory.
Besides some unique products like tobacco, liquor, etc., sales and export taxes don’t apply to Hong Kong with very few products coming under tax regimes.
Another point is that Hong Kong imports valued less than 800 dollars can enter the United States without any duties and taxes, this can benefit the small-sized and medium-sized eCommerce retailers a lot and makes Hong Kong very attractive for savvy eCommerce business owners because of the duty-free port and lack of tariffs when shipping through Hong Kong.
In the end, we can say the tax system in Hong Kong is easy to understand and quite reasonable, making Hong Kong a useful shipping hub for international businesses.
3 – Hong Kong’s excellent shipping facilities
Looking for shipping facilities, you’ve probably realized that finding a shipping hub set up with good storage and shipping is not easy. In Hong Kong this isn’t an issue at all, In fact, we can say Hong Kong has a high level of design, technology and efficiency because of being financed, owned and operated by private sectors. Hong Kong offers world-class shipping register as well as excellent shipping infrastructure, which makes it a highly reliable and efficient option for shipping and getting your products quickly and safely to your customers.
4 –One of the simplest shipping procedures are in Hong Kong
Besides the excellent-quality facilities already mentioned, Hong Kong also has straightforward procedures for shipping. Shipping in mainland China is often put off because of the things you need to learn when you want to work with shipping procedures there, but in comparison, Hong Kong has business practices that are very similar to West, and you won’t get caught up with bundles of confusing forms and bureaucracy for attempting to ship your goods in and out.
The restrictions in mainland china cause strict inspections when shipping out of there which often makes the shipping time significantly longer, the customers are unhappy, and it also affects the business directly, but fortunately, this isn’t the case when shipping from Hong Kong.
5 – Hong Kong is an international marketing hub
Another essential part that needs to be considered is that for a thriving shipping business, the country should have an international business community. Hong Kong has all of these, a large international community and more than seventy of the world’s largest banks operating in Hong Kong.
It also has a large, vibrant community of startups which offer an international outlook and style to make it easily accessible for eCommerce business owners all around the world.
On top of that, the language barrier, which makes doing business hard for people is no issue in Hong Kong with its high level of English proficiency getting business done has never been easier.
To sum up all the points, the strong geographical connection along with the big international market, low taxes and easy communication makes Hong Kong one of the best options from every standpoint for importers outside of Asia and also importers in Asian countries.
How to Choose the Best Logistics in Hong Kong
There are lots of Logistics companies in HK which you can choose from, but the most important thing is choosing the company that best suits your needs.
We’re going to mention some essential characteristics of a good logistics company; you can look into each of them to be able to choose the best one for yourself.
- Real-time tracking system and fast delivery
Above all other things, the tracking system and the fast delivery to the customer is one of the vital roles in the logistics industry, these can earn the trust of customers and make them the companies’ loyal customer, so the logistics company that take this point into consideration is also a trusted one.
- Streamlined infrastructure
In the fast-pace of the eCommerce world, having a streamlined infrastructure in one of the essential points, it enables the company to handle the growing amount of works but also keep the fast delivery.
Handling inventory, shipping, return and fulfilment; These are some of the points that a good Logistics company should be able to take.
- Large distribution networks
Having organized storage facilities in the target destination and an efficient transportation system to be able to offer the fast service that customers need.
- Digital Fluency
Today’s technology requires digital fluency for facilitating all the process; a good logistics company keeps up with all these changes and makes itself accessible through all the needed ways.
Top Logistics Companies and courier services in Hong Kong
This German international courier founded in the US in 1969 is one of the biggest companies in Logistics, it has different headquarters in all around the world, and one of them is Hong Kong.
This multilingual logistics, courier and package delivery company is based in Dubai and was founded in 1982. Nowadays the Hong Kong base of Aramex ships to 220 countries all around the world.
- Direct Link
Direct Link Logistics operates a growing service of modern, company-owned cargo vans, box trucks and tractor-trailers. It works both locally and internationally in the logistics system, with more than 12 headquarters all the around the one and surely one in Hong Kong.
It is a Worldwide Express and eCommerce service provider in Asia with more than 30 years of experience and a strong network worldwide. Their company motto is “Knowing Asia Delivering Asia.”
UPS is one of the biggest and most trusted shipping and logistics companies on the Global scale, UPS is the acronym for United Parcel Service and was founded in 1907. It offers logistics services, courier express and freight forwarding. Needless to say, one of the offices are in Hong Kong with excellent facilities and worldwide connections.
DPD or Dynamic Parcel Distribution is Europe’s second-largest parcel delivery network; It’s focused on a flexible and user-friendly service for their customers, and they’re also industry leaders in pursuing carbon-neutral parcel delivery.
- Hong Kong Post
As the name suggests, this is a postal department and is a government department of Hong Kong responsible for postal services. It was founded in 1841, but since 1877 and after the handover of Hong Kong it’s been a sub-member of Universal Postal Union and separate from China Post.
- SF Express
It’s a Chinese multinational delivery service and logistics company based in Shenzhen, Guangdong. It’s the second-largest courier of China providing domestic and international express delivery. SF Express was launched in 1993, and the service between Hong Kong and Guangdong province was provided.
TNT is an international courier delivery services company offering road and air delivery services all over Europe, Asia, the Americas and Africa. In June 2014 the conduction of its rail freight trail started to support business in the United Kingdom and cut carbon emissions, having a headquarter in Hong Kong it gives accessibility for shipping to more than 200 countries from there.
It’s an American international delivery service headquartered in Memphis, Tennessee. It’s known for overnight shipping services and package tracking with real-time updates. FedEx is a big courier with multiple services and covering all around the world and Hong Kong.
Desk to Desk Courier and cargo is an Indian courier which handles more than 12 million shipments every month. Even though the company is headquartered in Bangalore, Karnataka, It provides service to worldwide with having more than 12000 offices and 220 international destinations.
Now that we covered all the things there’s to know about why Hong Kong is one of the best places to choose as your shipping hub, and we’re glad to inform you that DDPCH offers excellent service from Hong Kong to worldwide with excellent prices and fast and reliable services. If you need any shipping service from Hong Kong, you can contact us and make sure that your shipment is in good hands.