Hong Kong’s air cargo throughputfrom Mainland China passing through the territory will drop as trade growthbetween China and North Asia shiftsmore of the flow further north, theSouth China Morning Post reported,citing a senior DHL Express official.

"Further trade links between Japan,South Korea and China mean fewershipments in and out of Hong Kong," DHL Asia Pacific chief executive ScottPrice said.

DHL channels 70 percent of itsChina consignments through its southernChina hub in Hong Kong. Otherthan that, foreign direct investmentin the Pearl River Delta in southernChina is shrinking due to the increasein labour costs and a lack of workers in the region.

This cut would lead to a fall in air cargo demand in the Pearl River Delta, Price added.