Hong Kong cargo down, Cathay defers terminal

Hong Kong cargo down, Cathay defers terminal Air freight through Hong Kong’s Asia Airfreight Terminal fell 33 percent in December and 8 percent for all of 2008, according to a report in the Hong Kong Shipping Gazette.
   The terminal is the smaller of two that handle cargo at Asia’s busiest air freight gateway, which has been hit hard by falling demand for goods from South China throughout the year.
   “It is evident that the financial tsunami has its ripple effect on air cargo industry,” said AAT General Manager Nelson Lee. “It is nevertheless the best time to re-engineer cargo handling to enhance efficiency.”
   The situation is so bad that Cathay Pacific has decided to defer the completion of the airport’s third cargo terminal, which the Hong Kong carrier is developing through a subsidiary. The deferral is for up to 24 months, to 2013.
   “The decision to apply for the deferral of the cargo terminal was taken in response to market conditions brought about by the global economic downturn,” Cathay said in a statement Thursday. “The deferral is aimed at better matching supply and demand in the air freight business given the current market outlook. It is also important for the company to maintain a strong balance sheet until the market strengthens.”