Hong Kong Air Cargo Hub's 'Zero COVID' Policy Adds New Challenge to Supply Shortage

[Asia Economy Reporter Yujin Cho] The "zero-COVID" policy in Hong Kong, a major air logistics hub in Asia, is emerging as a new obstacle to the global supply shortage, according to a recent report by the US CNN network.

Following China, a hub for maritime logistics, Hong Kong is continuing stringent quarantine measures on air cargo, raising concerns that pressure on the global supply shortage will intensify.

Hong Kong's Cathay Pacific Airways warned that the Hong Kong government's decision to more than double the self-quarantine period for cargo flight crew members from 3 days to 7 days will cause dramatic disruptions to the global supply shortage.

Starting from the 7th, Hong Kong authorities have completely banned the entry of flights arriving from eight countries, including the United States, the United Kingdom, Canada, and Australia, where the Omicron variant is spreading rapidly.

Andy Wong, Head of Corporate Affairs at Cathay Pacific Airways, said, "If quarantine measures for crew members are strengthened, the number of flights will inevitably decrease, which will cause serious short-term disruptions to the supply chain."

Until now, airlines have maintained lenient policies on quarantine regulations for cargo flights, which have a relatively lower risk of infection compared to passenger flights, but with the spread of the new Omicron variant, even air cargo is facing stricter operational regulations.

Hong Kong, which has adopted a zero-COVID policy along with mainland China, is increasing the level of quarantine by enforcing unilateral border controls and extending quarantine measures for incoming travelers to prevent COVID-19.

Earlier, China also announced measures to strengthen port quarantine for all vessels entering the country, raising concerns about worsening supply chains. Since last month, Chinese authorities have been enforcing full lockdowns in Xi'an, Shanxi Province, and Zhengzhou, Henan Province, cities with populations of around 13 million.

The lockdown in the Xi'an area, where major semiconductor companies including Samsung Electronics have factories, has continued for over two weeks, making the impact on the semiconductor supply chain a reality.