Hong Kong Maritime Trade Summit: Navigating Challenges and Opportunities in Global Shipping

Speech by FS at Hong Kong Global Maritime Trade Summit

Following is the speech by the Financial Secretary, Mr Paul Chan, at the Hong Kong Global Maritime Trade Summit today (November 17):

Dr Emanuele Grimaldi (Chair of the International Chamber of Shipping), Your Excellencies, Ministers, distinguished guests, ladies and gentlemen,

Good morning. It is a pleasure to welcome you all to the second Hong Kong Global Maritime Trade Summit, co-hosted by the International Chamber of Shipping (ICS), the Hong Kong Shipowners Association, and the newly formed Hong Kong Maritime and Port Development Board.

This important event brings together more than 300 global maritime leaders from some 30 economies for vital dialogue and collaboration. Your presence speaks to the global significance of the discussions here.

I would like to thank the ICS for once again choosing Hong Kong to host this pivotal summit, casting a strong vote of confidence in us as an international maritime centre. Representing over 80 per cent of the world's merchant fleet, your leadership in shaping the global maritime agenda is unparalleled.

Building Resilience in an Age of Transformation

The theme of this Summit - "Building Resilience, Driving Growth and Investment" - speaks directly to our moment. Global maritime trade is no doubt facing headwinds: geopolitical tensions, tariff escalations, and new trade barriers are reshaping shipping routes and disrupting established patterns. The UNCTAD (United Nations Conference on Trade and Development) Review of Maritime Transport 2025 forecasts seaborne trade growth of merely 0.5 per cent this year, down from 2.2 per cent in 2024 - the slowest pace in years. Vessel rerouting has pushed ton-miles to record levels, forcing ships to travel longer distances at higher cost.

Yet this is not necessarily a story of decline, but of transformation. Allow me to offer three observations.

Shifting maritime trade patterns

First, in my view, geopolitics will reshape rather than weaken maritime trade flows. Consider China. It has stood as the world's largest manufacturing economy for 15 consecutive years, commanding close to 30 per cent of global manufacturing output. It has an industrial ecosystem spanning the entire classification of industrial categories recognised by the United Nations. Despite talk of supply chain diversification, no country possesses China's completeness, scale, efficiency or integrated capacity. Indeed, supply chain reconfiguration arising from trade tensions is creating a complementary, not substitutional, relationship across the region.

While Southeast Asian nations are attracting more investments and manufacturing activities, in this process, they are reinforcing the two-way trade flow with China, in raw materials, components, semi-finished goods and finished products. As a matter of fact, China-ASEAN (Association of Southeast Asian Nations)trade reached a record of some US$690 billion in the first eight months of 2025. Hong Kong, as a key re-export hub, has witnessed substantial growth in this business.

As a manufacturer, China will continue to demand vast quantities of raw materials and components from Southeast Asia, Africa and the Pacific, like Australia. Meanwhile, as a consumer market of 1.4 billion people with a rapidly expanding middle income group, China will drive continued growth in the import of food, fashion, electronics, and more.

At the same time, Southeast Asia, with approximately 700 million people with a median age of 32, is experiencing a significant demographic dividend. More importantly, their incomes are rising substantially. By 2030, ASEAN will contribute 140 million new consumers, representing 16 per cent of the world's new consumer class.

Beyond Asia, the broader Global South, currently accounting for 18 per cent of global GDP, is projected to grow at 4.2 per cent annually through 2029. By 2033, South-South trade is expected to approach US$14 trillion.

I believe this economic dynamism will be reshaping maritime trade. Intra-regional trade is emerging as a powerful engine of growth. Intra-Asia container volumes are projected to reach more than 42 million TEUs (Twenty Equipment Unit) by 2028, representing 3.8 per cent growth per year, outpacing the global average.

The maritime sector itself is evolving, too. Intra-regional trade is driving demand for smaller, fuel-efficient vessels optimised for short-sea shipping. Scheduling patterns are also shifting to accommodate new supply chains and regional trade growth. Bulk commodities remain dominant in seaborne trade, and containerised cargo - including consumer electronics, automotive components, and renewable energy products - is experiencing robust growth, particularly in intra-Asia routes.

Decarbonisation as both imperative and opportunity

My second observation is that decarbonisation of maritime operations is both an imperative and opportunity. The IMO (International Maritime Organization) has set a target of achieving net-zero carbon emissions from international shipping by 2050. This is not environmental aspiration alone. It is regulatory reality.

To this end, the liner shipping industry is making substantial progress, with 79 per cent of the deadweight tonnage of container and vehicle carriers capable of operating on renewable fuels. Yet scaling green fuel production and creating financial mechanisms to support adoption remain challenging. It requires strong political commitment and cross-sectoral collaboration.

The opportunity is substantial. Maritime decarbonisation represents a multi-trillion-dollar investment opportunity through 2050. The transition to zero-emission marine fuels could create up to 4 million jobs globally across the energy supply chain. Here in Hong Kong, we are embracing this. For example, we have published an Action Plan on Green Maritime Fuel Bunkering, positioning ourselves as a regional hub for sustainable fuel supply. Our goal is to provide bunkering services for green fuels to ocean-going vessels more than 60 times per year by 2030, involving over 200 000 tonnes of green maritime fuels.

Harnessing digital transformation

My third observation is on technology's transformative power. Ports and global container lines are commonly deploying artificial intelligence, blockchain and advanced data analytics to improve operational efficiency, optimise routes, and reduce downtime and carbon emissions. This is where Hong Kong also comes in, with our vibrant technology and startup community. Many of them are pioneering innovations in smart logistics. They can play a role not only in supporting our own transformation but also in serving the broader region.

Technology is also reshaping what is shipped and how. As consumer preferences shift and companies adopt new production methods, the mode of maritime trade also evolves. Consumers are now preferring sustainable, traceable products, driving demand for supply chain solutions that can verify environmental and social credentials in real time. Besides, the speed of technology adoption in operation and management will determine competitive success in this decade. Those who are able to digitalise their operations will reduce costs, capture market share, and be better able to meet the expectations of increasingly sophisticated customers and regulators.

Concluding remarks

Ladies and gentlemen, the maritime industry stands at a pivotal moment. Geopolitical fragmentation, shifting patterns of global commerce, climate imperatives and technological advancement are formidable forces. Yet they create opportunity precisely because they demand agility, innovation and vision.

Yes, the currents are shifting, and the waters may be uncharted. But like the explorers in the Age of Discovery, there lies tremendous opportunity for those with the vision to navigate with strategy, courage and conviction. I am convinced that the voyage ahead is one of extraordinary growth for those who are willing and ready.

On this note, I wish you all a most rewarding Summit, and the best of health and business in the time ahead.

And for those of you coming from afar, I would like to appeal to you: don’t just work, but enjoy the city. We have wonderful hiking trails, beaches, about 200 Michelin-recommended restaurants, great museums, and above all, we don’t impose duty on wine! And remember to shop till you drop! Thank you.

Speech by FS at Hong Kong Global Maritime Trade Summit Source: HKSAR Government Press Releases

Government announces updates on follow-up work on Tai Po fire

The three task forces set up by the Government for the fire at Wang Fuk Court in Tai Po - the Task Force on Investigation and Regulation, the Task Force on Emergency Support and Fund-Raising, and the Task Force on Emergency Accommodation Arrangements - are making full efforts to follow up on the support, relief, and investigation work related to the incident. Details are as follows:

Financial and welfare support

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For the Support Fund for Wang Fuk Court in Tai Po, established by the Government, donations received are about $3 billion as of 1pm today (December 7). In addition to the start-up capital of $300 million from the Government, the fund's total has now reached around $3.3 billion. The fund will be used to assist residents in rebuilding their homes and providing long-term and sustained support.

The Government earlier announced that the Support Fund will provide a living allowance to each affected household. As of today, 1 273 cases have been processed. The living allowance is increased from $50,000 to $100,000 and will be disbursed in phases. In addition, the Support Fund will provide families of each deceased victim with a token of solidarity of $200,000, as well as $50,000 to cover funeral costs. As of today, a total of 90 cases have been processed.

In addition, the Government has so far disbursed an emergency subsidy of $10,000 to 1 931 households.

Social workers from the Social Welfare Department (SWD) have been in contact with more than 1 970 affected households, and more than 4 900 residents have been registered for the "one social worker per household" follow-up service. The SWD will maintain liaison with the affected households to provide all necessary assistance while fully supporting the relief work of the Government. Those not yet in touch with the SWD are advised to leave their contact information by calling 182 183 as soon as possible.

Accommodation support

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As of this morning, a total of 1 408 residents have been accommodated, through the co-ordination of the Home and Youth Affairs Bureau, in youth hostels, camps, or hotel rooms. Another 2 702 residents have moved into transitional housing units provided by the Housing Bureau or units from the Hong Kong Housing Society. Moreover, the Tai Po District Office continues to operate a temporary shelter at Tai Po Community Centre, which remains open to residents in need. The other temporary shelter at Tung Cheong Street Community Hall will remain in operation until the existing users have relocated to arranged emergency accommodations.

Relief supplies and donations

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The supplies donation online platform, established by the Government and the information technology sector, continues to operate, facilitating the registration of supplies donations from organisations and the public. The Government has so far received about 1 600 registrations, of which approximately 30 per cent were submitted by organisations, whereas the others were contributed by the public. The various registered donation items include food and beverages, clothing, daily necessities, bedding, and electrical appliances. The Government is actively assessing residents' actual needs through the relevant policy bureau, government departments, and service organisations for the matching of donated supplies in order to distribute appropriate items to places in need in phases. So far, over 4 800 pieces of donation items covering various categories have been distributed to different places. The matching and distribution of supplies will continue.

Handling of reported missing persons

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The Police have completed searches inside all seven buildings. Officers from the Disaster Victim Identification Unit (DVIU) continued to search the area around the buildings and near the collapsed scaffolding today, which had been confirmed as safe. No human remains were found, and the number of the deceased remains at 159. The Police are contacting the families of the missing persons and those who have preliminarily identified the deceased through photographs to arrange for them to undergo DNA oral swab sampling in batches starting tomorrow (December 8) for scientific identification of the deceased.

Investigations

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The Fire Services Department officers assisted the DVIU in removing accumulated water from the elevator shafts of Wang Kin House, Wang Tai House, Wang Cheong House and Wang Shing House to facilitate the search operations.

Regulation and inspection work

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The emergency maintenance contractors co-ordinated by the Housing Department have largely completed the clearance of miscellaneous items at the surroundings of the buildings at Wang Fuk Court today. With the protective nets removed from the four Home Ownership Scheme courts, namely Yee Kok Court in Sham Shui Po, On Kay Court in Kwun Tong, Sui Wo Court in Sha Tin and Ching Lai Court in Sham Shui Po, as well as Fung Wah Estate in Chai Wan under the Tenants Purchase Scheme, the Independent Checking Unit (ICU) of the Housing Bureau has requested registered inspectors to arrange for contractors to check on the conditions of the scaffoldings and remove waste and miscellaneous items to ensure safety on-site. The ICU will continue to conduct inspections and monitor the situations.

Regarding the order to remove scaffold nets issued by the Buildings Department (BD), as of 6pm today, 224 private buildings have had their scaffold nets removed from the external walls. Four cases undergoing removal work have requested an extension of time, and the BD has accepted their applications. It is expected that the work will be finished within this week. The removal work of scaffold nets from the remaining two private buildings has been affected by ongoing contractual disputes between the contractors and the incorporated owners (the disputes existed prior to the Tai Po fire). The BD has arranged for government contractors to carry out the work and will recover the costs later. In addition, the Architectural Services Department has completed the removal of scaffold nets at the government buildings under its purview before the deadline.

The BD strives to announce a new set of arrangements within this week requiring the scaffold nets used at construction sites to be sampled on-site and certified as compliant with the relevant standards prior to installation so that the relevant external wall work can resume as soon as possible.

The 5 000 training places of Multi-skilled/Skill Enhancement courses reserved by the Construction Industry Council for workers affected by the suspension of repair work on external walls (trades including plumbing, window framing, painting and decoration, plastering, and bamboo scaffolding) will be open for application tomorrow. The courses are tuition-free. Depending on the specific trade courses and training hours, workers who complete the training and obtain qualifications can receive a maximum subsidy ranging from $14,000 to $19,000.

The Labour Department (LD) continues to inspect fire protection facilities and the fire emergency preparedness of building maintenance work sites with large-scale scaffolding to ensure the occupational safety of workers. As of 4pm today, the LD has inspected 332 construction sites, issued a total of 170 written warnings and 95 improvement notices, and taken out 25 prosecutions.

Source: AI-found images