Fuel Surcharge Surge | Freight and Logistics Industry Association Urges Government Intervention to Restore Stability

As international oil prices have recently surged rapidly, many airlines in Hong Kong have announced significant adjustments to their freight fuel surcharges. The Hong Kong Freight Logistics Association (HAFFA) has expressed strong dissatisfaction, stating that some airlines’ increases have far exceeded reasonable limits, which is unfair and will inevitably cause a heavy blow to Hong Kong’s overall economy and livelihoods.

According to the association’s monitoring, major airlines have increased fuel surcharges on long-haul routes by over four times, and short-haul routes by nearly four times. Compared to the approximately 30% to 40% rise in international crude oil prices during the same period, these near-instant and multiple-fold fee adjustments are clearly disconnected from actual operational cost increases.

Liu Haoran, chairman of HAFFA, stated that such reckless price hikes not only force freight forwarders to bear heavy burdens but also risk triggering a disastrous ripple effect, leading to uncontrollable soaring logistics costs. Ultimately, this huge additional expense will undoubtedly be passed on to end consumers, potentially causing supply chain instability and disrupting freight flow. This is undoubtedly a blow to Hong Kong’s economic arteries and damages its fundamental competitiveness as an international logistics hub.

He emphasized that airlines must provide clear and transparent explanations for their surcharge calculation methods and increases, and establish a publicly accessible mechanism linked to actual operating costs. Since 2016, HAFFA has firmly demanded the maintenance of a government-regulated Fuel Surcharge (CFS) mechanism, as the Civil Aviation Department, as the regulatory authority, possesses high credibility. At that time, the association warned that abandoning regulation and liberalizing the market would inevitably lead to significantly increased operating costs and market chaos, severely weakening Hong Kong’s international competitiveness.

Liu Haoran stated that in the face of current market chaos, HAFFA urges relevant government regulators to immediately investigate and restore the government-regulated Fuel Surcharge (CFS) mechanism to ensure fair market competition, prevent airlines from exploiting market dominance and geopolitical crises for excessive profits, and safeguard the fundamental interests of the industry and the public.