Dear HAFFA Members,

HAFFA proudly celebrates its 60th Anniversary in 2026! Over the past six decades, the cargo industry has faced remarkable growth and challenges, and our Members—local and international companies of all sizes—have consistently shown agility and resilience in adapting to the dynamic global trade and transportation landscape. We deeply appreciate your strong support. For details of the HAFFA 60th Anniversary Diamond Celebration – Gala Dinner, please click: https://haffa.com.hk/en-HK/Page/Default.aspx?id=2913

HAFFA hails Chief Executive John Lee’s annual policy address for a strong demonstration of the Government’s commitment to developing high-end industries and expanding into new economic frontiers. The logistics sector broadly supports the measures, which are expected to reinforce Hong Kong’s position as an international logistics hub and open up emerging markets, thereby enhancing overall competitiveness. The address highlighted significant positive implications for our industry. It further affirms the Central Government’s unwavering support for Hong Kong, enabling the city to move forward steadily in new economic sectors under the ‘One Country, Two Systems’ framework—leveraging our national backing while remaining globally connected.

HAFFA continues to represent Members’ interests in various government consultations, such as the Port Community System, Cargo Fuel Surcharge, and Trade Single Window, as detailed in this annual report and sub-committee reports.

(1) Government’s Regulated Cargo Fuel Surcharge (CFS) Mechanism

Since 2016, HAFFA has played a pivotal role in protecting members’ interests and safeguarding Hong Kong’s competitiveness in the face of government liberalization of the Cargo Fuel Surcharge (CFS) mechanism.

HAFFA took its advocacy public. In March 2026, the association issued a strong press release in response to the sharp and disproportionate escalation of CFS levels. HAFFA condemned airlines for imposing surcharges far exceeding the rise in international oil prices, placing a huge financial burden on freight forwarders. The association highlighted that such increases reflected a liberalized environment lacking transparency and oversight, and called on the reinstatement of government-regulated CFS mechanisms to safeguard fair competition, prevent airlines from exploiting market position and geopolitical crises for profiteering, and protect the fundamental interests of the industry.

Following sustained advocacy, HAFFA achieved a milestone breakthrough on 27 March 2026 through intensive negotiations with Cathay Pacific Airways and the Transport and Logistics Bureau (TLB). As a result, Cathay introduced a new Medium‑Haul CFS category on 8 April 2026, reclassifying South Asia destinations from long‑haul to medium‑haul.  This adjustment delivered immediate cost relief and a fairer charging mechanism. HAFFA views this outcome as a clear demonstration of the power of collective advocacy: when Hong Kong’s freight forwarders speak with one strong voice, real and positive change can be achieved — even in complex and sensitive areas such as cargo fuel surcharge.

Through persistent engagement and lobbying, HAFFA has reaffirmed its leadership and commitment to transparency, industry support, and safeguarding Hong Kong’s competitiveness. This achievement continues our mission to ease financial burdens, ensure fairness, and protect stability for Members.

(2) Trade Single Window 貿易單一窗口 (TSW)

Invited by the Commerce and Economic Development Bureau (CEDB), HAFFA has been actively engaging in developments of the Trade Single Window (TSW) years ago, where we represent the interests of Members. 

Key Milestones and Achievements

HAFFA had an impactful year marked by strategic engagements and collaborations with local and international high-level organizations that aim to strengthen ties between Hong Kong and the world.

(3) I, represented HAFFA, was elected as the Chairperson of Hong Kong Local Consultative Council (HKLCC) for 2025–2027 at the first meeting on 24 July 2025. This council replaces the previous LCAG-C (Local Customer Advisory Group – Cargo), ICAP (IATA Cargo Advisory Panel), and CCC (CASS Consultative Council). HAFFA submitted four key issues for discussion: the frequency of quarterly reviews, challenges with central bank guarantees, persistent CASS billing discrepancies, and the disproportionate gap between Level 1 and Level 2 in the Table of IATA Financial Standing. These initiatives reflect HAFFA’s commitment to transparency, fairness and advocacy for Members’ interests.

(4) At the launch ceremony for the PCS project, the Secretary for Transport and Logistics, Mable Chan, presented the certificate of appointment to me joining the Strategic Advisory Panel. On 16 May 2025, TLB held a launch ceremony for the PCS project, marking the commencement of its construction phase. The ceremony, officiated by Secretary for Transport and Logistics Mable Chan and former Legislative Council Member Frankie Yick, underscored the Government’s commitment to digital transformation in the maritime sector.

HAFFA has also actively promoted PCS engagement, with the Secretariat coordinating member participation and organizing an e-briefing held on 16 October 2025, following promotion via HAFFA News. These efforts highlight HAFFA’s commitment to supporting innovation, efficiency and sustainable growth in the maritime sector. The PCS project marks a significant milestone in Hong Kong’s logistics digitalization journey, reinforcing the city’s position as a leading international maritime center. 

(5) In November 2025, Vice Chairlady Ms. Janet Ng and I have successfully led a logistics delegation to Ezhou and Wuhan. Joining us were two other Vice Chairmen, Members of the Executive Committee, HAFFA Members, and distinguished leaders from across the logistics sector—collectively representing 15 companies. The visit received strong support from the Ezhou People’s Government, the Hong Kong Economic and Trade Office in Wuhan, and the Hong Kong Trade Development Council (HKTDC).

The delegation’s primary focus was the city of Ezhou, where Members visited the Ezhou Huahu International Airport (鄂州花湖國際機場), the Ezhou Shunjia International Cargo Terminal (順嘉國際貨運站) and the China (Ezhou) Cross-border E-commerce Industrial Park (跨境電商產業園). Strategically positioned at the geographic center of China, the airport offers a 1.5-hour flight radius that reaches approximately 80% of the Mainland. 

(6) HAFFA organized the first “Innovate and Lead - The New Wave Logistics Competition” last year. The aim of this competition was to promote industry innovation and cultivate young talents, aligning with the Government’s policy direction to build Hong Kong into a smart logistics, ESG and low-altitude economy development hub.

The event attracted 40 teams of secondary school students from Hong Kong and Macau. Through simulated operations and professional training, participants were able to develop interdisciplinary skills in advance and propose innovative solutions to address logistics pain points, presenting their research outcomes to a judging panel composed of representatives of the government, industry, and academia.

The competition not only received widespread acclaim, but also demonstrated the effectiveness of nurturing young logistics talents. After the success of the event, one of the gold medal student teams continued to expand their project. They went on to win a silver medal at the 51st Geneva Exhibition of Inventions, earning international recognition. This proved that campus creativity has the potential to evolve into practical solutions with real application value. We are convinced that hosting this competition can broaden the international horizons of secondary school students while injecting new innovative momentum into the logistics industry and driving its sustainable development.

HAFFA remains committed to promoting business interests for its Members in a professional manner. By maintaining close communications with carriers, shippers, terminal operators and staying updated on market trends, HAFFA aims to support its Members in navigating the evolving logistics landscape. We encourage Members to leverage HAFFA News, Members’ login areas in our website and other resources for the latest industry insights.

HAFFA will, as always, continue to foster strong relationships with the Legislative Council, TLB, CAD, AAHK, HKTDC, Customs, Police, AVSECO, HKPC, HKSC, WCO, IATA, FIATA, and FAPAA. Through unity and collaboration, we strive to prevent, mitigate, and resolve industry challenges, contributing to the sustained development of international freight forwarding in Hong Kong, the Asia Pacific, and beyond.

We extend our heartfelt appreciation to HAFFA Members, Committee Members, secretariat staff, and our government and industry partners for their unwavering support. Together, we continue to earnestly offer views on cargo policies/measures for the government to proceed with enhancing our logistics system with a view to elevating Hong Kong’s position as a competitive business and international logistics hub.

Yours sincerely,

Gary Lau

Chairman