Hong Kong Association of Freight Forwarding and Logistics Calls for Intervention Over Airline Fuel Surcharge Increases
The Hong Kong Association of Freight Forwarding and Logistics (HAFFA) has urged the government to intervene after several airlines significantly increased cargo fuel surcharges, warning the move could destabilise supply chains and weaken Hong Kong’s position as a global logistics hub.
The industry body said it was “deeply dissatisfied” with what it described as excessive increases, noting that some airlines had raised fuel surcharges on long-haul routes by more than fourfold, while short-haul routes saw nearly quadruple increases.
According to HAFFA, these increases far exceed the rise in international crude oil prices, which the association said had climbed by roughly 30–40% over the same period.
Concerns Over Supply Chain Impact
HAFFA Chairman Gary Lau warned that the scale and speed of the increases appear disconnected from actual operating cost pressures.
He said the sharp adjustments risk creating a “disastrous domino effect” across the air cargo sector, with other carriers potentially following suit and pushing logistics costs significantly higher.
Lau also cautioned that the additional costs would likely be passed through the supply chain, ultimately affecting businesses and consumers.
He said the resulting cost pressures could disrupt cargo flows and undermine Hong Kong’s competitiveness as an international logistics and aviation hub.
Calls for Greater Transparency
The association has called on airlines to provide clearer explanations of how fuel surcharges are calculated and to introduce transparent mechanisms linking adjustments to verifiable operating cost changes.
HAFFA said freight forwarders must be able to understand and justify the charges to their customers, warning that unexplained or excessive increases risk being viewed as profiteering from market volatility rather than legitimate cost recovery.
Liberalisation of Surcharges Under Scrutiny
The association also criticised the government’s decision to liberalise cargo fuel surcharges in 2025.
Previously, fuel surcharge levels were regulated under a mechanism overseen by the Civil Aviation Department Hong Kong, which HAFFA said helped ensure market stability and credibility.
Despite industry concerns raised during consultations, the government proceeded with the liberalisation on 1 January 2025.
HAFFA is now urging regulators to review the policy, investigate the recent surcharge increases and consider reinstating a regulated cargo fuel surcharge framework to ensure fair competition and prevent airlines from exploiting market conditions.