VZCZCXRO7588
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHVC
DE RUEHHK #1679/01 2460719
ZNR UUUUU ZZH
R 030719Z SEP 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 8462
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 HONG KONG 001679 
 
SIPDIS 
 
STATE FOR EAP/CM AND EEB, TREASURY FOR OASIA 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV ETRD HK CH
SUBJECT: HONG KONG AIR/MARITIME THROUGHPUT CARGO UPDATE - 
JULY 2009 
 
REF: HONG KONG 158 
 
¶1. SUMMARY: According to Hong Kong Government figures, local 
air and maritime cargo throughput may be recovering from the 
steep drops seen earlier this year.  Maritime cargo volumes 
fell 14.5 percent year-on-year for July 2009 but increased 8 
percent from June.  Air cargo throughput in July fell 8.4% 
compared to the previous year, the smallest monthly decline 
in air cargo since September 2008.  Increasing air cargo 
trade with Europe and North America supported continued 
recovery in intra-Asian trade.  Hong Kong registered maritime 
cargo capacity increased, in spite of excess demand that has 
empty ships moored in Hong Kong waters.  END SUMMARY 
 
=============================== 
HK Container Traffic Recovering 
=============================== 
 
¶2. (U) The Hong Kong Government's Marine Department released 
figures indicating the container throughput for all Hong Kong 
port facilities fell 14.5% in July 2009 compared with the 
July 2008.  Through the first seven months of 2009 volumes 
were down 17.0% compared to the same period in 2008.  The 
Maritime Department estimated a total of 1,930,000 Twenty 
Foot Equivalent Units (TEU) passed through the Hong Kong,s 
port system in July 2009 bringing the 2009 year-to-date total 
to 11,842,000 TEU.  While still down substantially compared 
to last year, July's throughput was a significant increase 
over June 2009 and marked the largest number of containers to 
pass through Hong Kong's ports since October 2008. 
 
¶3. (U) Looking at monthly container throughput numbers since 
the beginning of 2009, it appears that the decline in 
maritime cargo passing through Hong Kong has hit bottom and 
begun to show signs of recovery. 
 
Month       Y-O-Y Growth      Total TEUs ('000) 
Jan 2009    - 23.6%           1,612 
Feb 2009    - 18.2%           1,345 
Mar 2009    - 16.5%           1,672 
Apr 2009    - 17.8%           1,725 
May 2009    - 13.3%           1,767 
Jun 2009    - 15.6%           1,792 
Jul 2009    - 14.5%           1,930 
 
======================== 
Marine Cargo Capacity Up 
======================== 
 
¶4. (U) The Hong Kong Maritime Department reports an overall 
expansion of maritime cargo carrying capacity.  Published 
figures show a 9.5 percent year-on-year growth rate in the 
number of cargo carrying vessels registered in Hong Kong, 
with a 10.5 percent year-on-year growth rate in the gross 
tonnage for those vessels.  This increase comes in spite of 
continued excess cargo capacity.  According to the Managing 
Director of the Hong Kong Shipowners Association (HKSOA) 
large numbers of empty merchant vessels remain anchored in 
Hong Kong, waiting for a return of demand for 
consumer-related shipping.  In some instances, these vessels 
are reportedly being used as off-shore holding tanks for oil 
in the hopes that the futures market creates a profit 
opportunity. 
 
¶5. One explanation for the increase in cargo carrying vessels 
registered to Hong Kong came from the HKSOA Managing Director 
who noted that even as purchasers cancel orders for new 
ships, economies of scale make it difficult for shipyards to 
quickly halt production.  These new vessels are being 
purchased by China-based ship owners with the backing of the 
Central Bank, he said, in hopes of a recovery ahead. 
 
=================================== 
Air Cargo to EU, US Also Recovering 
=================================== 
 
¶6. (U) Hong Kong Air Cargo Terminals Limited (HACTL) reported 
total air cargo tonnage throughput for July 2009 fell by 8.4 
percent year-on-year over the same period in 2008.  This 
marks the smallest monthly decline since September 2008. 
While still well below July 2008 figures, shipments to and 
from Hong Kong's major trading partners were up substantially 
from June 2009, with North America and Europe showing the 
largest increases.   The table below shows the percentage 
year-on-year decline in air cargo volume for HACTL from 
January to July 2009. 
 
 
HONG KONG 00001679  002 OF 002 
 
 
Month       Y-O-Y Growth 
Jan 2009    -30.9% 
Feb 2009    -22.0% 
Mar 2009    -21.1% 
Apr 2009    -22.5% 
May 2009    -18.6% 
Jun 2009    -14.4% 
Jul 2009    -8.4% 
MARUT