The Hong Kong Association of Freight Forwarding and Logistics (HAFFA) has voiced strong concerns over recent sharp increases in cargo fuel surcharges (CFS) announced by several airlines and they urged government regulators to review the adjustments amid rising oil prices and heightened cost pressures across the logistics sector.
HAFFA said its monitoring shows at least one major airline has raised fuel surcharges on long‑haul routes by more than fourfold, with short‑haul routes seeing nearly quadruple increases. The association noted that these adjustments far exceed the recent 30%–40% rise in international crude oil prices.
"This reckless escalation is nothing more than forcing an unbearable burden onto freight forwarders, and it will trigger a disastrous domino effect, with airlines likely to follow suit, driving overall logistics costs out of control," said HAFFA Chairman Gary Lau.
"Ultimately, this massive extra expense will be passed directly to ultimate consumers, potentially destabilizing supply chains, disrupting cargo flows, and striking at the very core of Hong Kong's economy. It is a direct blow to people's livelihoods and a fundamental erosion of Hong Kong's competitiveness as an international logistics hub."
Lau said airlines should provide transparent explanations of how surcharges are calculated and establish a mechanism that links adjustments to actual operating costs.
"Freight forwarders have the right to understand the principle of these charges so they can reasonably account to their customers. If airlines fail to provide sound justification, such almost immediate and multiple-fold increases will be regarded as profiteering from market volatility rather than a genuine reflection of costs," he added.
HAFFA also reiterated its long‑standing position that cargo fuel surcharges should remain under government oversight.
He noted that since 2016, HAFFA has consistently demanded the continuation of government-regulated CFS mechanisms, as the Civil Aviation Department, acting as regulator, carries high credibility.
"This was a consensus and bottom line within the cargo industry. At that time, HAFFA had sternly warned that abandoning regulation in favor of market liberalization would inevitably lead to soaring operating costs, market disorder and a serious weakening of Hong Kong's international competitiveness," Lau said.
Lau noted that since 2016 the association has advocated for continued regulation by the Civil Aviation Department, arguing that the regulator's involvement had ensured credibility and stability.
He said the industry had warned that liberalizing CFS mechanisms would lead to higher operating costs and market disorder.
"Despite multiple rounds of consultation, the government ultimately insisted on implementing fuel surcharge liberalization from January 1, 2025. We are extremely disappointed and regretful," Lau said.
"Faced with today's chaotic market situation, HAFFA solemnly and strongly urges the relevant government regulatory authorities to intervene immediately, investigate these increases, and revoke the liberalization decision."
"We call for the reinstatement of government‑regulated CFS mechanisms to safeguard fair competition, prevent airlines from exploiting market position and geopolitical crises for profiteering, and protect the fundamental interests of the industry and the public," he added.
HAFFA said the logistics sector remains a critical pillar of Hong Kong's economy and warned that unreasonable fee adjusments could have broad negative impacts.
Lau said the association will continue monitoring developments and "does not rule out taking further action" to protect the interests of freight forwarders and the public.
The recent surge in global oil prices and the subsequent hike in cargo fuel surcharges are mainly driven by the escalating conflict in the Middle East, resulting in the effective closure of the Strait of Hormuz — a critical chokepoint for 20% of the world's oil supply.
Established in 1996, HAFFA represents more than 300 corporate members and provides industry standards and training for freight forwarders and logistics service providers.
