AIR CARG O WEEK
WEEKLY NEWS
HONG KONG ACCELERATES GREEN FUEL ADOPTION AND LOGISTICS MODERNISATION
BY Edward HARDY
HONG Kong is entering a new phase of maritime and logistics transformation, driven by regulatory reform, green fuel adoption, and expanded multimodal connectivity. The city is positioning itself to capture rising demand for low-carbon shipping services and high-value logistics flows as regional supply chains and Mainland manufacturing shift.
Green maritime fuel takes centre stage Hong Kong is moving from feasibility assessments to full operational deployment of green maritime fuel bunkering. Regulations enabling the use of LNG and green methanol are already in effect, and the Government has issued codes of practice for both fuels. Commercial LNG bunkering operations have been regularised following multiple ship-to-ship demonstrations since early 2025. Biodiesel deliveries have also reached record levels, reflecting strong market demand for diversified fuel supply. The shift requires adjustments for shipowners, bunker suppliers,
and terminal operators. Methanol bunkering will necessitate mass flow meters, new storage facilities in Tsing Yi South, and modifications to anchorages and fairways. To support early adoption, the Government has launched a collaborative business platform and an incentive scheme for first movers. Duty exemptions for methanol used in outbound vessels remove cost barriers and align Hong Kong with global decarbonisation standards, including the IMO Net-zero Framework. Growth opportunities extend beyond bunkering into trading.
Although no global centre for green maritime fuel trading exists yet, tightening decarbonisation rules are expected to create a liquid market. Hong Kong aims to leverage its financial infrastructure, free capital flows, and legal system to build an international trading platform. Early steps include a June 2025 Mainland-Hong Kong business matchmaking event, where supply-chain firms explored commercial agreements across biofuels, LNG, and methanol. “The market is entering a structural transition, and operators
need certainty on fuel availability,” Tse said. “Hong Kong now has a functioning LNG bunkering regime and a pathway for green methanol.” “The city is building the regulatory and physical backbone for a
multi-fuel future that can serve regional fleets,” Tse added. “Trading activities will emerge as decarbonisation requirements intensify, and carriers seek transparent pricing.” “The objective is to ensure Hong Kong remains a credible
international maritime centre with operational readiness for zero- carbon fuels,” Tse said. “More infrastructure, collaboration, and commercial activity will follow.”
Logistics modernisation and intermodal expansion Hong Kong’s logistics sector is undergoing digitalisation, land supply
restructuring, and enhanced intermodal connectivity.
The Government aims to build a sustainable international smart logistics hub,
focusing on high-value cargo and e-commerce.
Subsidies, advisory services, and training schemes are expanding adoption of digital solutions across SMEs. A consultancy project is underway to improve interoperability across logistics data platforms and support a B2B exchange for value-added services. Land planning is central to modernisation. Four logistics sites
near Kwai Tsing, totalling around 19 hectares, are being released between 2024 and 2027. The first 4.4-hectare parcel in Tsing Yi has already been sold. New logistics clusters are planned in the Northern Metropolis to consolidate distribution operations and improve warehouse efficiency. These clusters are expected to enhance throughput for temperature-controlled cargo and other high-value segments. Intermodal expansion is also a strategic differentiator. The
Government is strengthening rail-sea-land-river connectivity to Mainland production bases,
including Sichuan and Chongqing.
Airfreight transhipment rules will be expanded to cover sea-to- air and sea-to-sea cargo, reducing compliance friction. The Hong Kong-Zhuhai-Macao Bridge continues to extend the city’s cargo hinterland into the western Pearl River Delta. The logistics sector remains a core economic pillar. Trading and
logistics contributed 18.8 percent of GDP in 2023, with logistics alone accounting for 3.6 percent. Employment reached 171,500, underpinning demand for talent development under new green and smart-logistics schemes. “The logistics market is shifting towards higher-value flows, and
companies need infrastructure that supports automation and data integration,” Tse said. “New land supply and smarter digital tools will lift service capability.” “Intermodal
Strengthening Hong Kong’s maritime centre status Hong Kong continues to position itself as an international maritime centre with a wide range of professional services. More than 1,200 maritime companies operate in the city across ship management, brokerage, legal, insurance, and technical services. About 8.2 percent of global merchant- fleet deadweight is managed by members of the Hong Kong Shipowners Association, reinforcing the city’s role in global fleet operations. The Hong Kong Shipping Registry remains a major competitive
asset. As of end-October 2025, it recorded 2,085 ships totalling 115 million gross tonnes. Regional desks in London, Shanghai, Singapore, Australia, San Francisco, Tokyo, and Toronto offer shipowners support across major port cities.
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Incentives are structured to
retain high-quality tonnage and attract new entrants. The Annual Tonnage Charge Reduction Scheme continues to reward ships with no detentions. A new green incentive rewards vessels achieving A or B ratings under the IMO’s carbon intensity indicator. The Block Registration Incentive Scheme, launched in February 2025, provides fee refunds for owners registering multiple ships. These measures complement the city’s emerging green bunkering
capability. Shipowners planning long-term fleet deployment benefit from pairing quality flag administration with access to multi-fuel bunkering and low-carbon port services. Efforts to reduce emissions from port operations, expand green-fuel storage, and support green government vessels are part of an ecosystem strategy integrating regulatory, infrastructure, and financial levers. The Government’s action plan includes ten measures across
five strategies: Green Fuel, Green Port, Green Incentives, Green Collaboration, and Green Expertise. Implementation ranges from simplifying approval processes to nurturing at least 50 green-fuel specialists by early 2026. Hong Kong also plans to engage Mainland partners to develop at least one green shipping corridor by 2026, linking decarbonised fleet operations with aligned port standards. “Shipowners value a flag that understands operational realities
freight will define Hong Kong’s competitiveness
over the next decade,” he added. “Extending the Air Transhipment Cargo Exemption Scheme will remove bottlenecks and attract more throughput.” “The industry requires a stable policy environment to invest
in modern assets and green solutions,” Tse said. “Hong Kong is
achieving incentives.”
www.aircargoweek.com this through coordinated planning and targeted
and provides predictable regulation,” Tse said. “Hong Kong’s incentive schemes reward compliance, efficiency, and long-term fleet quality.” “Green fuel availability will shape fleet deployment strategies
across Asia,” he added. “Operators need confidence that bunkering, storage, and port facilities can support new-generation vessels.” “The international maritime centre proposition relies on integrated
services,” Tse said. “Hong Kong’s financial, legal, and professional ecosystem remains one of its strongest competitive assets.”
05 JANUARY 2026 ACW
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