Tariff tensions to soften cargo demand: Cathay
Cathay Pacific says it is taking proactive steps to be in the best possible position in facing external challenges. Photo: RTHK
Cathay Pacific on Wednesday said it expects air cargo demand between the mainland and the US to "soften" in the coming months due to tariff tensions as well as the axing of the de minimis rule.
The comments came as the world's two largest economies remain in a stand-off over tariff disputes, although US President Donald Trump indicated that the levies on China will not remain at 145 percent.
Speaking in a statement, the carrier noted that its cargo business saw strong growth last month.
However, it cautioned that the latest developments on trade tariffs are creating uncertainties and might cause disruptions.
'We expect a softening of general air cargo demand between the Chinese mainland and the United States due to the ongoing tariff situation and de minimis rule changes from early May," said Lavinia Lau, the group's chief customer and commercial officer.
"We are taking proactive steps to put ourselves in the best possible position in facing and mitigating these external forces as we remain aligned, agile and responsive in our approach," Lau added.
Following the axing of the de minimis rule, small parcels valued under US$800 shipped from the SAR and the mainland that were earlier exempted from American import taxes, will be subject to duties from May 2.
Her remarks came as Cathay reported that its cargo transport grew by 10.6 percent year on year to 148,807 tonnes in March, while passenger numbers jumped 19.8 percent year on year to 2.25 million.
Lau noted that although March marked a "quieter month" for the group's travel business due to the absence of long-weekend holidays in the SAR, demand for its "premium cabins" remained robust, thanks to various mega-events and exhibitions in the city, including Art Basel.
'The Hong Kong Sevens also generated strong inbound demand to our home city, especially on many of our long-haul routes," Lau added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
8 hours ago
- South China Morning Post
It's time to align Hong Kong's trading days with the mainland's
Money never sleeps in Hong Kong, except during some public holidays. The city is known for having many official days off. Often stock trading stops while other markets, including the one in mainland China, continue on their merry way of making money. In recent years, however, the city's stock exchange has been enhancing its services during traditional non-trading days. The next step, hopefully, will be to align holiday trading on Stock Connect with the mainland. Hong Kong's stock market is already dominated by Chinese companies, which account for around 80 per cent of its capitalisation. Since 2022, a large number of futures and options can be traded during holidays. Currency futures and options were included in March last year. The Hong Kong exchange has also moved to enhance the trading calendar for the Stock Connect programme, on both the northbound and southbound routes, to allow investors to trade on all days when both the mainland and Hong Kong markets are open. The Stock Connect, which links stock trading in Hong Kong with Shanghai and Shenzhen, enables a cross-border, two-way investing flow. It has offered more opportunities in Hong Kong for mainland investors and easier mainland access for international investors. Last year, the northbound and southbound average daily turnover was 150 billion yuan (US$20.7 billion) and HK$48.2 billion (US$6.2 billion), respectively, accounting for around 6 per cent and 18 per cent of the total turnover of the mainland and Hong Kong markets. The path forward is clear. More local holidays, though not all, can be open for trading. Christian holidays such as Easter and Christmas can be included since they are normal working days on the mainland. Additional trading days on the calendar can ease market disruptions caused by a mismatch in holidays, which has frustrated fund managers on both sides of the border.
South China Morning Post
18 hours ago
- South China Morning Post
China-built satellite station a ‘shining' example of support for Namibian space programme
On the outskirts of the Namibian capital Windhoek, a Chinese-funded and built satellite data receiving ground station symbolises China's growing cooperation in Africa's nascent space industry. The station was described by the Chinese embassy as 'a shining example of China-Namibia cooperation ' as they celebrated the 35th anniversary of diplomatic relations. In a social media post on July 18 announcing the completion of the satellite facility ahead of time earlier this year, the embassy said it aimed to support Namibia in developing its space-related infrastructure and training technical talent , while enhancing its capacity in remote sensing satellite applications'. The ground station will primarily receive, process and distribute remote sensing satellite data for various applications such as environmental monitoring, agriculture , disaster management and resource assessment in the southwestern African country. China will also provide technical training to dozens of engineers to build up Namibia's capacity to operate and use the station independently. This ongoing cooperation highlights China's growing influence in space, as it helps African nations to build their space capabilities through strategic partnerships.
South China Morning Post
a day ago
- South China Morning Post
US, Nato seek to supply Ukraine with weapons paid for by allies
The US and Nato are working on a novel approach to supply Ukraine with weapons using funds from Nato countries to pay for the purchase or transfer of US arms, according to three sources familiar with the matter. Advertisement The renewed transatlantic cooperation on Ukraine comes as US President Donald Trump has expressed frustration with Moscow's ongoing attacks on its neighbour. Trump, who initially took a more conciliatory tone toward Russia as he tried to end the more than three-year war in Ukraine, has threatened to start imposing tariffs and other measures if Moscow shows no progress toward ending the conflict by August 8. The president said last month the US would supply weapons to Ukraine, paid for by European allies, but did not indicate how this would be done. Nato countries, Ukraine, and the United States were developing a new mechanism that would focus on getting US weapons to Ukraine from the Priority Ukraine Requirements List, known by the acronym PURL, the sources said. Advertisement Ukraine would prioritise the weapons it needs in tranches of roughly US$500 million, and Nato allies – coordinated by Nato Secretary General Mark Rutte – would then negotiate among themselves who would donate or pay for items on the list.
