Hong Kong urges end to cargo dumping amid tariff tensions
Hong Kong exporters are warning against the practice of abandoning cargo at sea to evade tariffs, describing this action as "irrational," according to reports from the "South China Morning Post." Experts highlight that such practices can harm the reputation of both the companies involved and the country as a whole.
Hong Kong exporters and trade groups are urging businesses not to abandon cargo during transit as a way to avoid the high tariffs imposed by the United States. As reported by the "South China Morning Post," such actions could result in significant financial losses and damage the reputation of both companies and the nation.
Trump’s tariffs: cargo abandoned before reaching the USA
The newspaper cites an incident in which a Chinese exporter abandoned goods en route to the USA, turning over the containers to shipping companies. However, the report does not specify which company was involved.
Willy Lin Sun Mo, chairman of the Hong Kong Shippers' Council, stated, "This is highly irrational and irresponsible as dumping the goods at sea will mean the exporter will lose everything, including effort and money. Apart from losing the cargo, it will fail to claim insurance for failing to fulfil contractual obligations and risk being sued by the importer or potential customers for damages."
Dennis Ng Kwok-on, from the trade chamber of the Chinese Manufacturers’ Association of Hong Kong, told the "SCMP" that such actions are detrimental to all parties involved. He explained that it was a typical situation where one harms others without gaining any benefits, and that exporters should take care of their reputation.
The Hong Kong Export Credit Insurance Corporation has introduced three protective measures for small and medium enterprises against shipping-related risks. These include a 50% discount on insurance premiums and an extension of the protection period, aimed at supporting companies amid the escalating US-China trade war.
