Hong Kong’s sea freight holds 54.10% share amidst routing shifts

Sector posts 4.21% CAGR to 2031 as waterways dominate freight forwarding revenue.

Hong Kong’s sea and inland waterways accounted for 54.10% of freight forwarding revenue in 2025, with a compound annual growth rate (CAGR) of 4.21% to 2031, according to Mordor Intelligence.

This comes as the region’s freight and logistics market is set to expand to $27.95b by 2031 from $22.4b in 2025, with a 3.78% CAGR, amidst structural pressure from shifting regional shipping routes and rising competition from mainland Chinese ports.

The broader freight transport function, which includes maritime and road networks, holds a 58.45% share of Hong Kong’s logistics market in 2025, reflecting its central role in trade flows.

Despite this scale, container throughput declined by 14.1% in 2023 as carrier alliances increasingly bypass Hong Kong in favour of mainland hubs, including Nansha, Yantian, and Shenzhen.

This diversion of routes has placed pressure on Hong Kong’s transshipment role, and is estimated to reduce overall market CAGR by 1.1%.

Operational costs have also increased as ocean carriers face bunker surcharges between $1,125 and $1,700 per forty-foot equivalent unit in January 2025.

This comes alongside compliance requirements linked to the International Maritime Organisation’s Carbon Intensity Indicator and Hong Kong’s 2050 carbon neutrality framework, adding reporting and fuel cost burdens across operators.

The market remains supported by the region’s duty-free re-export status and regulatory framework, although it has lost its position amongst the top 10 global ports.

Policy and infrastructure responses include a $128.05m investment in the Hong Kong AI Research Institute to support development of autonomous yard systems and digital port community platforms.

Market strategy is shifting towards higher-margin segments, including time-sensitive freight and value-added logistics services such as bonded trucking and customs brokerage.

Corporate restructuring has also emerged, highlighted by CK Hutchison’s $17.77b sale of an 80% stake in Hutchison Ports, as capital shifts toward other portfolio areas, whilst new ownership seeks to optimise port assets.