Hong Kong: Flight Suspensions Add to US Agricultural Shipping Woes

In response to Hong Kong’s new quarantine requirements on locally based cargo crew, on December 30, 2021, Cathay Pacific airlines announced the suspension of all long-haul cargo and cargo-only passenger flights until January 6, 2022. Post estimates the impact of the seven-day flight suspension on U.S. agricultural and food exports at $2.6 million. According to a logistics trade entity, this new quarantine measure could raise air shipping costs and further disrupt future supplies of fresh produce, seafood, and premium meats. In addition, the government’s January 5 announcement suspending in-bound passenger flights from various countries, including the United States, will extend the impact on U.S. agricultural trade as passenger flights also carry cargo. Hong Kong’s Chief Executive Carrie Lam conveyed on January 12, she expects some goods, including premium foods, to become unavailable or their prices to go up.