Nine freight and logistics groups have issued a follow-up appeal to the chief executive of the Hong Kong SAR Government for urgent relief measures for the industry and to accelerate and prioritise the implementation of the recommendations contained in the original letter issued on February 19, 2020.
Freight and logistics industry is being hit hard by the ongoing COVID-19 pandemic. Global supply chain is severely interrupted. 95% of the shipments are cancelled, put on hold or disrupted, and the operators are facing unprecedented threats, tremendous risks from default payment and liquidity difficulties. Without timely Government’s financial support will put the future of tens of thousands of SME and micro companies operating within the industry in closure, forcing thousands and thousands of workers out of job.
Writing to the Secretary for Transport and Housing Frank Chan on March 30, and led by Frankie Yick, the nine organisations represent the vast majority of operators in one of the four pillars of the Hong Kong SAR economy.
The group has urged the SAR Government for the implementation of two of its recommendations be prioritized to face the burning issues, namely:
rental subsidies; for a minimum of six months, with a ceiling of HK$50,000 per month for offices premises and HK$100,000 per month for warehouse space; wage subsidies; for a minimum of six months 50% wage subsidy, with a ceiling of HK$10,000 being half the median salary under Census and Statistics Department, per employee per month.
In addition, the group is calling for immediate acceleration of the implementation of government-guaranteed loans of up to HK$2 million per company, a key measure which is vital to support sustainable business development.
Co-signatories (in alphabetical order) to the letter are: the Federation of Hong Kong Industries (FHKI) - Group 21 Transport & Logistics Services Council; Hong Kong Association of Aircargo Truckers (HAAT); Hong Kong Association of Freight Forwarding and Logistics (HAFFA); Hong Kong Logistics Association (HKLA); Hong Kong Logistics Management Staff Association (HKLMSA); Hong Kong Sea Transport and Logistics Association (HKSTLA); The Chamber of Hong Kong Logistics Industry (CHKLI); The Chartered Institute of Logistics and Transport in Hong Kong (CILTHK); and The Institute of Purchasing & Supply of Hong Kong (IPSHK).