SIMIC

"It's a long journey but it must start somewhere," said a senior SEKO Logistics director addressing the Asian Logistics, Maritime and Aviation Conference (ALMAC) staged by the Hong Kong Trade Development Council (HKTDC) at the Hong Kong Convention and Exhibition Centre.

Chaminda Gunasekera had just summed up the complex bans and mandates demanded by "sustainability" officials before shipments could be shipped.

Mr Gunasekera, SEKO's senior director for Asia Pacific, said that it would affect ecommerce, and make life difficult if not impossible for small and medium size enterprises (SME).

"Some bottom level players may find it difficult to compete," said Mr Gunasekera, explaining that if a US$10 t-shirt cost $10 in carbon compliance costs, such a situation would put an SME out of business.

Costs, he said, arise from demand for supply chain visibility. "The data a cargo owner must provide must be accurate. So if the cargo sits in a warehouse in Dubai, you must know what that warehouse carbon foot print is and include it in your calculations."

And the situation will become more demanding and the demand for detailed data more exacting as standards are upgraded each and every year.

Panel member Ivy Tse, co-chief executive officer and co-founder FreightAmigo, told the ALMAC delegates of the coming of artificial intelligence (AI) and big data application to warehousing and logistics in general.

Panel member Terence Chiu, commissioner of the Hong Kong Export Credit Insurance Corporation, explained the role of his 56-year-old agency that assisted Hong Kong retain its position as an export hub, particularly in electronics.