Hong Kong exporters warn against irrational cargo abandonment
Hong Kong exporters warn against abandoning cargo at sea to avoid tariffs, calling this action "irrational," reports the "South China Morning Post". Experts emphasize that such practices can damage the reputation of both companies and the country.
Hong Kong exporters and trade groups urge businesses not to abandon cargo during transit in an attempt to avoid high tariffs imposed by the United States. According to the "South China Morning Post," such actions can lead to significant financial losses and damage to the reputation of companies and the country.
Trump’s tariffs: Cargo abandoned from ship before reaching the USA
The newspaper cites an incident involving the abandonment of goods on water by a Chinese exporter en route to the USA and handing over containers to shipping companies. However, it does not specify which company is involved.
Willy Lin Sun-mo, chairman of the Hong Kong Shippers' Council, emphasizes, "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 harmful to all parties. He considered it a typical situation where one harms others without gaining any benefits. He also believes that exporters should care about their reputation.
The Hong Kong Export Credit Insurance Corporation has introduced three protection measures for small and medium enterprises against shipping-related risks, including a 50% discount on insurance premiums and an extension of the protection period. These measures are aimed at supporting companies in the face of the escalating US-China trade war.
